Viaspace mit bedeutendem Patent vor Durchbruch im Milliarden-Markt (Seite 42)
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Antwort auf Beitrag Nr.: 45.460.299 von Huelsenbeck am 16.09.13 20:29:05Huelsenbeck,
glaubst du im Ernst, daß eine Verlautbarung von Viaspace irgendeine tiefere Bedeutung hat?
glaubst du im Ernst, daß eine Verlautbarung von Viaspace irgendeine tiefere Bedeutung hat?
!
Dieser Beitrag wurde von CloudMOD moderiert. Grund: Spam, Werbung
VIASPACE CEO Update Part 2 Highlights California and Hawaii Business Activities and Opportunities
WALNUT, Calif., Sept. 16, 2013 /PRNewswire/ --VIASPACE Inc. (OTCQB: VSPC) CEO, Dr. Carl Kukkonen, today provided an update on recent company business activities. This second of three updates covers the Giant King Grass nursery in California and activities in Hawaii. It complements a previous company update issued on September 4, 2013. A future third CEO update will cover business activities and opportunities in Southeast Asia.
Dr. Kukkonen reported, "The VIASPACE Giant King Grass propagation nursery and test plot in California is ready to harvest for propagation material (Giant King Grass seedlings) to be sent to customers. The Giant King Grass was cut on March 10, 2013 and is now six months old. It is about 14 feet tall and is fully mature for propagation. We conducted a germination test at five months old and obtained 100% germination which is outstanding."
Kukkonen continued, "The nursery is also a demonstration plot that potential customers can visit to see the Giant King Grass in person. Although we show pictures of Giant King Grass and it can be seen on our website, seeing it in person reveals the full power and effect. The canopy is fully closed and when you walk inside, you cannot see the California sun. The closed canopy prevents weeds from growing amongst the Giant King Grass without the need for herbicide. The plants are racing each other to get to the sun and get very tall. During the last few months we have had visits from potential customers from Central America, the Caribbean, Philippines, India, Pakistan and the US. The nursery is not open to the public, but only to serious potential customers that have signed nondisclosure agreements."
"In addition, we recently announced results of independent and third-party testing that show when Giant King Grass is cut frequently at 4-5 feet tall, it is an excellent, high protein animal feed. The testing data demonstrate that Giant King Grass is very similar in nutritional value to oat hay. We have just recently expanded our California Giant King Grass nursery with additional land dedicated to further develop, implement and support our animal feed business line. This is an important new aspect of our overall business strategy to accelerate and augment our sources of revenue."
"Giant King Grass has been grown by the US Department of Agriculture and declared to be free of pest and disease, and approved for distribution throughout the United States, and for export to other countries. When Giant King Grass is exported, the US Department of Agriculture inspects the shipment at our California nursery and issues a phytosanitary certificate. Giant King Grass has been sent from our nursery in California to St. Croix in the U.S.Virgin Islands, Nicaragua, South Africa, Hawaii and to other locations."
"For those of you who have been to Hawaii, you will remember that there is a form that you have to fill out on the airplane declaring if you are carrying any agricultural items. This is because the Hawaiian Islands are very careful not to let in any new pests or invasive agricultural species. To get Giant King Grass into Hawaii, it has to be grown in their quarantine facility under supervision of the Hawaii Department of Agriculture for one year. It does not make any difference that the mainland USDA grew and approved Giant King Grass under their supervision, to get approval in Hawaii, it takes another year. VIASPACE made arrangements with the Hawaii Department of Agriculture and began growing Giant King Grass in quarantine on December 20, 2012."
"The quarantine facility is a one-story building surrounded by a water moat to prevent crawling insects from getting in. The door enters into a small vestibule painted black with another door admitting entry into the facility itself. This two step entrance process is meant to prevent flying insects from getting inside. Within the facility, there are separate rooms for each species. Our room is about 10' x 13' with a 13 foot ceiling that is a translucent plastic. Two sides are screened and air can get in. The room was sterilized and the Giant King Grass was planted in 5 gallon containers. The Department of Agriculture waters the plants according to our schedule, but does nothing else. VIASPACE does the maintenance including fertilization."
Kukkonen continued, "It is not an ideal growing situation because there is no direct sunlight and only partial diffuse sunlight. This could significantly inhibit the growth of Giant King Grass. Secondly, Giant King Grass is supposed to be harvested twice per year whereas the quarantine is for a full year. Third, the grass is planted in 5 gallon containers rather than in the earth-- they are root bound. Despite these limitations, the Department of Agriculture notified us that the Giant King Grass was literally hitting the ceiling. Last week, I went and cut the grass and did a propagation of new Giant King Grass. The grass is doing well and there are no pests or disease. We expect that the Giant King Grass will be released from quarantine in three months on December 19, 2013. The seedlings from the Giant King Grass soon to be released from quarantine, represent the future of VIASPACE in Hawaii."
"While I was in Hawaii, I met with potential customers who are developing projects for biomass electricity. One important thing I learned was that the Hawaiian government is trying to resurrect the agriculture sector in Hawaii. There is only one operational sugar plantation remaining of the many great plantations of the past. Pineapple is virtually gone. At one time the Hawaiian Islands raised a great number of cattle and this business is almost gone as well. Pig farming is active, but declining. The food for the pigs is imported from the mainland which is very expensive. The few remaining cattle graze on pasture and then are sent to the cattle feed operations on the mainland to gain enough weight to be sold. There are many great opportunities for Giant King Grass to be used as animal feed and as an energy crop in Hawaii."
"I attended the Asia Pacific Clean Energy Summit and VIASPACE exhibited at the Expo. Hawaii Governor, Neil Abercrombie, gave the opening speech. He was very passionate and articulate about the need for renewable energy in Hawaii. He said that the electricity price of up to $0.40 per kilowatt hour was the highest of anywhere in the United States, and that Hawaii was totally dependent on expensive, imported oil. He specifically called out biomass electricity in addition to solar and wind as good alternatives for Hawaii. The Summit and Expo gave VIASPACE great exposure and produced several new leads and potential partnerships."
Kukkonen concluded, "Our propagation nursery and test plot in California is an extremely valuable asset. It is both a sales showroom and a source of Giant King Grass seedlings for customers interested in bioenergy projects and/or animal feed applications. Hawaii presents an exciting and new opportunity for VIASPACE as well and it is very timely that we entered quarantine last year. We will have Giant King Grass available to actively pursue and implement business opportunities in Hawaii in December."
About VIASPACE Inc.
VIASPACE grows renewable Giant KingTM Grass as a low-carbon fuel for clean electricity generation; for environmentally friendly energy pellets; and as a feedstock for bio-methane production and for green cellulosic biofuels, biochemicals and biomaterials. Giant King Grass is a proprietary, high yield, dedicated biomass clean energy crop that does not compete with or displace food production. For more information, please go to www.VIASPACE.com or contact Dr. Jan Vandersande, Director of Communications, at 800-517-8050 or IR@VIASPACE.com.
Safe Harbor Statement
Information in this news release includes forward-looking statements. These forward-looking statements relate to future events or future performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. Such factors include, without limitation, risks outlined in our periodic filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K for the year ended December 31, 2012, and other factors over which VIASPACE has little or no control.
SOURCE VIASPACE Inc.
© 2013 PR Newswire
http://www.finanznachrichten.de/nachrichten-2013-09/28016619…
--->Läuft.
Gruß HB
WALNUT, Calif., Sept. 16, 2013 /PRNewswire/ --VIASPACE Inc. (OTCQB: VSPC) CEO, Dr. Carl Kukkonen, today provided an update on recent company business activities. This second of three updates covers the Giant King Grass nursery in California and activities in Hawaii. It complements a previous company update issued on September 4, 2013. A future third CEO update will cover business activities and opportunities in Southeast Asia.
Dr. Kukkonen reported, "The VIASPACE Giant King Grass propagation nursery and test plot in California is ready to harvest for propagation material (Giant King Grass seedlings) to be sent to customers. The Giant King Grass was cut on March 10, 2013 and is now six months old. It is about 14 feet tall and is fully mature for propagation. We conducted a germination test at five months old and obtained 100% germination which is outstanding."
Kukkonen continued, "The nursery is also a demonstration plot that potential customers can visit to see the Giant King Grass in person. Although we show pictures of Giant King Grass and it can be seen on our website, seeing it in person reveals the full power and effect. The canopy is fully closed and when you walk inside, you cannot see the California sun. The closed canopy prevents weeds from growing amongst the Giant King Grass without the need for herbicide. The plants are racing each other to get to the sun and get very tall. During the last few months we have had visits from potential customers from Central America, the Caribbean, Philippines, India, Pakistan and the US. The nursery is not open to the public, but only to serious potential customers that have signed nondisclosure agreements."
"In addition, we recently announced results of independent and third-party testing that show when Giant King Grass is cut frequently at 4-5 feet tall, it is an excellent, high protein animal feed. The testing data demonstrate that Giant King Grass is very similar in nutritional value to oat hay. We have just recently expanded our California Giant King Grass nursery with additional land dedicated to further develop, implement and support our animal feed business line. This is an important new aspect of our overall business strategy to accelerate and augment our sources of revenue."
"Giant King Grass has been grown by the US Department of Agriculture and declared to be free of pest and disease, and approved for distribution throughout the United States, and for export to other countries. When Giant King Grass is exported, the US Department of Agriculture inspects the shipment at our California nursery and issues a phytosanitary certificate. Giant King Grass has been sent from our nursery in California to St. Croix in the U.S.Virgin Islands, Nicaragua, South Africa, Hawaii and to other locations."
"For those of you who have been to Hawaii, you will remember that there is a form that you have to fill out on the airplane declaring if you are carrying any agricultural items. This is because the Hawaiian Islands are very careful not to let in any new pests or invasive agricultural species. To get Giant King Grass into Hawaii, it has to be grown in their quarantine facility under supervision of the Hawaii Department of Agriculture for one year. It does not make any difference that the mainland USDA grew and approved Giant King Grass under their supervision, to get approval in Hawaii, it takes another year. VIASPACE made arrangements with the Hawaii Department of Agriculture and began growing Giant King Grass in quarantine on December 20, 2012."
"The quarantine facility is a one-story building surrounded by a water moat to prevent crawling insects from getting in. The door enters into a small vestibule painted black with another door admitting entry into the facility itself. This two step entrance process is meant to prevent flying insects from getting inside. Within the facility, there are separate rooms for each species. Our room is about 10' x 13' with a 13 foot ceiling that is a translucent plastic. Two sides are screened and air can get in. The room was sterilized and the Giant King Grass was planted in 5 gallon containers. The Department of Agriculture waters the plants according to our schedule, but does nothing else. VIASPACE does the maintenance including fertilization."
Kukkonen continued, "It is not an ideal growing situation because there is no direct sunlight and only partial diffuse sunlight. This could significantly inhibit the growth of Giant King Grass. Secondly, Giant King Grass is supposed to be harvested twice per year whereas the quarantine is for a full year. Third, the grass is planted in 5 gallon containers rather than in the earth-- they are root bound. Despite these limitations, the Department of Agriculture notified us that the Giant King Grass was literally hitting the ceiling. Last week, I went and cut the grass and did a propagation of new Giant King Grass. The grass is doing well and there are no pests or disease. We expect that the Giant King Grass will be released from quarantine in three months on December 19, 2013. The seedlings from the Giant King Grass soon to be released from quarantine, represent the future of VIASPACE in Hawaii."
"While I was in Hawaii, I met with potential customers who are developing projects for biomass electricity. One important thing I learned was that the Hawaiian government is trying to resurrect the agriculture sector in Hawaii. There is only one operational sugar plantation remaining of the many great plantations of the past. Pineapple is virtually gone. At one time the Hawaiian Islands raised a great number of cattle and this business is almost gone as well. Pig farming is active, but declining. The food for the pigs is imported from the mainland which is very expensive. The few remaining cattle graze on pasture and then are sent to the cattle feed operations on the mainland to gain enough weight to be sold. There are many great opportunities for Giant King Grass to be used as animal feed and as an energy crop in Hawaii."
"I attended the Asia Pacific Clean Energy Summit and VIASPACE exhibited at the Expo. Hawaii Governor, Neil Abercrombie, gave the opening speech. He was very passionate and articulate about the need for renewable energy in Hawaii. He said that the electricity price of up to $0.40 per kilowatt hour was the highest of anywhere in the United States, and that Hawaii was totally dependent on expensive, imported oil. He specifically called out biomass electricity in addition to solar and wind as good alternatives for Hawaii. The Summit and Expo gave VIASPACE great exposure and produced several new leads and potential partnerships."
Kukkonen concluded, "Our propagation nursery and test plot in California is an extremely valuable asset. It is both a sales showroom and a source of Giant King Grass seedlings for customers interested in bioenergy projects and/or animal feed applications. Hawaii presents an exciting and new opportunity for VIASPACE as well and it is very timely that we entered quarantine last year. We will have Giant King Grass available to actively pursue and implement business opportunities in Hawaii in December."
About VIASPACE Inc.
VIASPACE grows renewable Giant KingTM Grass as a low-carbon fuel for clean electricity generation; for environmentally friendly energy pellets; and as a feedstock for bio-methane production and for green cellulosic biofuels, biochemicals and biomaterials. Giant King Grass is a proprietary, high yield, dedicated biomass clean energy crop that does not compete with or displace food production. For more information, please go to www.VIASPACE.com or contact Dr. Jan Vandersande, Director of Communications, at 800-517-8050 or IR@VIASPACE.com.
Safe Harbor Statement
Information in this news release includes forward-looking statements. These forward-looking statements relate to future events or future performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. Such factors include, without limitation, risks outlined in our periodic filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K for the year ended December 31, 2012, and other factors over which VIASPACE has little or no control.
SOURCE VIASPACE Inc.
© 2013 PR Newswire
http://www.finanznachrichten.de/nachrichten-2013-09/28016619…
--->Läuft.
Gruß HB
Um die Gründe warum wir mit uns selbst reden genauer zu charakterisieren hat der Psychologe Thomas Brinthaupt von der Middle Tennessee State Universität in Murfreesboro (USA) eine "Self-Talk"- Skala entwickelt, die vier Hauptfunktionen von Selbstgesprächen beschreibt.
"Selbstgespräche können unter anderem dazu dienen, Selbstkritik zu üben, sich selbst zu managen, soziale Situationen einzuschätzen und sich selbst zu bestätigen", sagt Brinthaupt.
Alles Gute weiterhin und ein schönes (Rest)Wochenende ...
"Selbstgespräche können unter anderem dazu dienen, Selbstkritik zu üben, sich selbst zu managen, soziale Situationen einzuschätzen und sich selbst zu bestätigen", sagt Brinthaupt.
Alles Gute weiterhin und ein schönes (Rest)Wochenende ...
Was ich gerne wissen würde: Wie kann man mit einem Pennystock Geld verdienen? Vielleicht gibt es hier ja Fachleute, die mir das erklären können.
Trading Spotlight
Alle Zahlen zu Viaspace stammen von MarketWatch. Ich denke, daß man bei diesen Zahlen schon ins Grübeln kommen sollte.
Gründung von Viaspace: Juli 1998
Anzahl Aktien : 1,45 Mrd.
Derzeitige Marktkapitalisierung: 14,5 Mio US-$ bei 1 Cent/Aktie
Zum Zeitpunkt der Gründung hatte die Aktie einen Wert von ca. 2 US-$.
Bislang bekannte Geschäftsmodelle:
a) Infrarotsensor: Damit soll auf mehr als 100m Entfernung Sprengstoffe/Sprengstoffgürtel identifiziert werden.
b) Brennstoffzelle
c) Giant King Grass: Energie aus Biomasse.
Kommentar: Das Problem bei der Biomasse ist nicht die Pflanzenart, da gibt es genügend und bessere. Der Flaschenhals ist die Fläche, die man zum Anbau braucht und die dort knapp ist, wo man Energie braucht, aber dort in Massen zur Verfügung steht, wo man kaum Energie braucht.
In den 3 Monaten April-Juni 2013 hatte die Firma einen Umsatz von 32.000 $. Betriebskosten betrugen 13.000$. Rohgewinn vor Steuern 19.000 $.
Mit anderen Worten: In einem Jahr verdient die Firma eta 80.000 $, sie leistet sich aber einen Chief Executive Officer, dem sie 160.000 $ im Jahr bezahlt und einen weiteren Mitarbeiter für 80.000 $ im Jahr.
Die Firma ist mit fast 50 Millionen $ verschuldet. Nun soll ein Dr. Schewe die Firma jährlich mit 1 Mio. unterstützen, damit sie weiter als AG am Markt bleiben kann. Eine Garantie dafür gibt es allerdings nicht, so daß die Firma jederzeit in die Insolvenz wandern kann.
Anzahl Aktien : 1,45 Mrd.
Derzeitige Marktkapitalisierung: 14,5 Mio US-$ bei 1 Cent/Aktie
Zum Zeitpunkt der Gründung hatte die Aktie einen Wert von ca. 2 US-$.
Bislang bekannte Geschäftsmodelle:
a) Infrarotsensor: Damit soll auf mehr als 100m Entfernung Sprengstoffe/Sprengstoffgürtel identifiziert werden.
b) Brennstoffzelle
c) Giant King Grass: Energie aus Biomasse.
Kommentar: Das Problem bei der Biomasse ist nicht die Pflanzenart, da gibt es genügend und bessere. Der Flaschenhals ist die Fläche, die man zum Anbau braucht und die dort knapp ist, wo man Energie braucht, aber dort in Massen zur Verfügung steht, wo man kaum Energie braucht.
In den 3 Monaten April-Juni 2013 hatte die Firma einen Umsatz von 32.000 $. Betriebskosten betrugen 13.000$. Rohgewinn vor Steuern 19.000 $.
Mit anderen Worten: In einem Jahr verdient die Firma eta 80.000 $, sie leistet sich aber einen Chief Executive Officer, dem sie 160.000 $ im Jahr bezahlt und einen weiteren Mitarbeiter für 80.000 $ im Jahr.
Die Firma ist mit fast 50 Millionen $ verschuldet. Nun soll ein Dr. Schewe die Firma jährlich mit 1 Mio. unterstützen, damit sie weiter als AG am Markt bleiben kann. Eine Garantie dafür gibt es allerdings nicht, so daß die Firma jederzeit in die Insolvenz wandern kann.
Antwort auf Beitrag Nr.: 45.421.733 von Loewe2004 am 10.09.13 18:54:48Du schließt falsch; ich habe noch nie gezockt, also Aktien oder ähnliches gekauft, ich interessiere mich nur dafür, wie dieser Markt funktioniert. Als ich von diesem Infrarot-Sensor las, schien mir das ein ziemlich starkes Indiz für einen Schwindel zu sein, einfch weil der behauptete Erfolg physikalisch nicht möglich ist. Daß auf dem Geldanlagemarkt Betrug an der Tagesordnung ist, siehe z.B. S&K, kann man ja als offenes Geheimnis bezeichnen. Daß es wohl einige gibt, die das nicht wahrhaben wollen, dazu mußt du nur diese Diskussion hier lesen.
Übrigens: Was sollte dein Link uns/mir sagen?
Für das lange Copy&Paste entschulige ich mich, ich hatte Angst, die betreffende Seite nicht wieder zu finden. Die Auswertung folgt in ein paar Tagen, heute habe ich dazu keine Zeit.
Was mich betrifft, bin ich in der angenehmen Situation,daß ich mir um mein Einkommen keine Sorgen machen muß. Das liegt vielleicht daran, daß ich nie Geld angelegt habe.
Übrigens: Was sollte dein Link uns/mir sagen?
Für das lange Copy&Paste entschulige ich mich, ich hatte Angst, die betreffende Seite nicht wieder zu finden. Die Auswertung folgt in ein paar Tagen, heute habe ich dazu keine Zeit.
Was mich betrifft, bin ich in der angenehmen Situation,daß ich mir um mein Einkommen keine Sorgen machen muß. Das liegt vielleicht daran, daß ich nie Geld angelegt habe.
freckels, hast du dich verzockt und kannst mit dem rebound nicht leben oder was treibt dich um hier rumzubashen 
hübscher anstieg:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?s…
hübscher anstieg:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?s…
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(EDGAR Online via COMTEX) -- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
The following discussion contains certain statements that constitute "forward-looking statements". Such statements appear in a number of places in this Report, including, without limitation, "Management's Discussion and Analysis of Financial Condition or Plan of Operation." These statements are not guarantees of future performance and involve risks, uncertainties and requirements that are difficult to predict or are beyond our control. Our future results may differ materially from those currently anticipated depending on a variety of factors, including those described below under "Risks Related to Our Future Operations" and our filings with the Securities and Exchange Commission. The following should be read in conjunction with the unaudited Consolidated Financial Statements and notes thereto that appear elsewhere in this Report and in conjunction with our 2012 Annual Report on Form 10-K as filed with the SEC.
VIASPACE Overview
VIASPACE Inc. ("we", "us", "VIASPACE", or the "Company") was founded in July 1998 and is a renewable energy company with a global reach. Our renewable energy is based on biomass-- in particular our dedicated energy crop with the trademarked name "Giant King(TM) Grass" ("GKG"), which we are able to commercialize throughout the world, except for the People's Republic of China and Taiwan, through a sublicense for Giant King Grass we obtained from VIASPACE Green Energy Inc. ("VGE").
GKG can be burned in 100% biomass power plants to generate electricity; made into pellets that can be burned together with coal to reduce carbon emissions from existing power plants; generate bio methane through anaerobic digestion, and can be used as a feedstock for low carbon liquid biofuels for transportation, biochemicals and bio plastics. Cellulosic ethanol, bio butanol and other liquid cellulosic biofuels, do not use corn or other food sources as feedstock. GKG can also be used as animal feed. GKG and other plants absorb and store carbon dioxide from the atmosphere as they grow. When they are burned, they release the carbon dioxide back into the atmosphere, but it is the same carbon dioxide that was removed from the atmosphere, and so this process is carbon neutral. Small amounts of fossil fuel are used by the farm equipment, transportation of GKG and fertilizer, so that the overall process of growing and burning GKG probably has some net carbon dioxide emissions, but much lower emissions than burning coal or other fossil fuels directly to create the same amount of energy. GKG has been independently tested by customers and been shown to have excellent energy content, high bio methane production, and the cellulosic sugar content needed for biofuels and biochemicals.
Through September 30, 2012, VIASPACE owned 75.6% of the equity interests of VGE. VGE and its subsidiaries Inter Pacific Arts Corporation ("IPA BVI") and Guangzhou Inter Pacific Arts ("IPA China") specialize in the manufacturing of high quality, copyrighted, framed artwork sold in US retail chain stores. In addition, VGE has an exclusive license to Giant King Grass, a proprietary dedicated energy crop. On September 30, 2012, the Company executed agreements to formalize the separation of the Company and VGE and cause the orderly transfer of all of the Company's equity interest in VGE to Changs, LLC, a company controlled by Sung Chang, President of VGE and a former Director of the Company. In addition, agreements have been executed which give VGE the right to commercially develop Giant King Grass in China and Taiwan and give VIASPACE the right to commercially develop Giant King Grass in the rest of the world outside China and Taiwan. Under the agreements, the VIASPACE secured debt previously owed to Chang will not have to be paid although it may be used to offset any outside claims made against Chang. Since the Company no longer has any equity interest in VGE, the Company can no longer consolidate the operations of VGE into the operations of the Company. The operating results of VGE prior to September 30, 2012 are shown as discontinued operations in the Company's financial statements.
The Company's web site is www.VIASPACE.com. Information contained on, or accessible through, our website should not be deemed as part of this report.
Critical accounting policies and estimates
Financial Reporting Release No. 60, "Cautionary Advice Regarding Disclosure About Critical Accounting Policies" ("FRR60") issued by the SEC, suggests companies provide additional disclosure and commentary on those accounting policies considered most critical. FRR 60 considers an accounting policy critical if it is important to the Company's financial condition and results of operations, and requires significant judgment and estimates on the part of management in its application. For a summary of the Company's significant accounting policies, including the critical accounting policies discussed below, see the accompanying notes to the consolidated financial statements.
The preparation of the Company's financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, which are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The result of these evaluations forms the basis for making judgments about the carrying values of assets and liabilities and the reported amount of expenses that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions. The following accounting policies discussed below require significant management judgments and estimates.
Revenue Recognition - The Company has two revenue models for GKG: 1. grass plantation integrated with a power plant or processing facility such as a pellet mill under company or joint venture control, and 2. contract plantation establishment, support and licensing for a customer that owns and operates the plantation and power plant.
For 2013, revenue includes amounts earned through consulting agreements and collaborative agreements for the joint operation of test plots to establish that GKG grows well in the area and optimal agronomic practices are developed. Revenue earned from collaborative agreements is comprised of negotiated payments for the operations of the test plots. Deferred revenue represents payments received which are related to future performance.
With regard to revenue recognition in connection with agreements that include multiple deliverables, management reviews the relevant terms of the agreements and determines whether such deliverables should be accounted for as a single unit of accounting in accordance with FASB ASC 605-25, Multiple-Element Arrangements. If it is determined that the items do not have stand-alone value, then such deliverables are accounted for as a single unit of accounting and any payments received pursuant to such agreement, including any upfront or development milestone payments and any payments received for support services, will be deferred and included in deferred revenue within our balance sheet until such time as management can estimate when all of such deliverables will be delivered, if ever. Management reviews and reevaluates such conclusions as each item in the arrangement is delivered and circumstances of the development arrangement change.
The Company accounts for equity instruments issued to consultants and vendors in exchange for goods and services in accordance with the provisions of FASB ASC Topic 505-50, "Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods or Services" and "Accounting Recognition for Certain Transactions Involving Equity Instruments Granted to Other than Employees". The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. In accordance with FASB ASC Topic 505-50, an asset acquired in exchange for the issuance of fully vested, non-forfeitable equity instruments should not be presented or classified as an offset to equity on the grantor's balance sheet once the equity instrument is granted for accounting purposes. Accordingly, the Company records the fair value of the fully vested, non-forfeitable common stock issued for future consulting services as prepaid expenses in its consolidated balance sheet.
The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There is no assurance that actual results will not differ from these estimates.
In accordance with FASB ASC 360-10-35, "Property, Plant, and Equipment", management reviews our long-lived asset groups, including property and equipment and other intangible assets, for impairment whenever events indicate that their carrying amounts may not be recoverable. Some of the events that we consider as impairment indicators for our long-lived assets, including goodwill, are:
£ our significant underperformance relative to expected operating results;
£ significant adverse change in legal factors or in the business climate;
£ an adverse action or assessment by a regulator;
£ unanticipated competition;
£ a loss of key personnel;
£ significant decrease in the market value of a long-lived asset; and
£ significant adverse change in the extent or manner in which a long-lived asset is being used or its physical condition.
When management determines that one or more impairment indicators are present for an asset group, we compare the carrying amount of the asset group to net future undiscounted cash flows that the asset group is expected to generate. If the carrying amount of the asset group is greater than the net future undiscounted cash flows, an impairment loss is recognized for the excess of the carrying amount of the asset group over its fair value. The management of the Company has concluded that there were no impairment indicators relating to long-lived assets at June 30, 2013.
Results of Operations
Three Months Ended June 30, 2013 Compared to June 30, 2012
Revenues
Revenues were $32,000 and $27,000 for the three months ended June 30, 2013 and 2012, respectively, an increase of $5,000. The revenues relate to collaborative agreements for the joint operation of test plots to establish that Giant King Grass grows well in customer's countries and optimal agronomic practices are developed.
Cost of Revenues
Costs of revenues were $13,000 and $25,000 for the three months ended June 30, 2013 and 2012, respectively, a decrease of $12,000. The costs relate to collaborative agreements for the joint operation of test plots to establish that Giant King Grass grows well in customer's countries and optimal agronomic practices are developed.
Gross Profit
The resulting effect on these changes in revenues and cost of revenues for the three months ended June 30, 2013 compared to the same period in 2012 was an increase in gross profit from $2,000 for the three months ended June 30, 2012 to $19,000 for the three months ended June 30, 2013.
Operations Expenses
Operations expenses were $6,000 and $0 for the three months ended June 30, 2013 and 2012, respectively, an increase of $6,000. Effective September 30, 2012, the Company separated from VIASPACE Green Energy as described in Note 2, and started incurring its own expenses in the grass business. Prior to September 30, 2012, the Company did not incur these costs. Operations expense is composed of plantation expenses related to the Company's test plot in California and costs associated with agronomy support and travel for potential customers.
Selling, General and Administrative Expenses
Selling, general and administrative expenses were $148,000 and $202,000 for the three months ended June 30, 2013 and 2012, respectively, a decrease of $54,000. Stock compensation expense decreased $160,000 in 2013 as compared with 2012 as less stock was issued by the Company to pay its employees. Stock option compensation expense decreased $2,000 in 2013 as compared with 2012 due to the completion of vesting of some stock option grants in 2012. Payroll and benefits increased $86,000 for the three months ended June 30, 2013 as compared to the same period in 2012 due to higher compensation levels in 2012 and the Company paying its employees in cash as opposed to stock. Legal fees decreased $12,000 in 2013 as compared with 2012 due to higher levels of legal fees in 2012 associated with the separation of the Company from VGE. Accounting fees increased $17,000 in 2013 as compared with 2012 due to increased costs associated with the Company's annual audit. Public relations expenses increased $5,000 in 2013 as the Company incurred increased investor relations expenses. Insurance expenses increased $15,000 in 2013 due to increases in the Company directors and officers' insurance costs. Other selling, general and administrative expenses, net, decreased by $3,000 for the three months ended June 30, 2013 compared with the same period in 2012.
Loss from Operations
The resulting effect on these changes in gross profits, operations expenses, and selling, general and administrative expenses was a decrease in loss from operations in 2013. For the three months ended June 30, 2012, the Company had a loss from operations of $200,000 compared with a loss from operations of $135,000 for the three months ended June 30, 2013, a decrease of $65,000.
Discontinued Operations
Loss from discontinued operations was $3,000 for the three months ended June 30, 2012 and $0 for the three months ended June 30, 2013. This loss from discontinued operations relates to the losses of VGE, DMFCC and Ionfinity for the three months ended June 30, 2012 as a result of the Company eliminating all ownership interests in the entity during 2012.
Six Months Ended June 30, 2013 Compared to June 30, 2012
Revenues
Revenues were $63,000 and $27,000 for the six months ended June 30, 2013 and 2012, respectively, an increase of $36,000. The revenues relate to collaborative agreements for the joint operation of test plots to establish that Giant King Grass grows well in customer's countries and optimal agronomic practices are developed.
Cost of Revenues
Costs of revenues were $15,000 and $25,000 for the six months ended June 30, 2013 and 2012, respectively, a decrease of $10,000. The costs relate to collaborative agreements for the joint operation of test plots to establish that Giant King Grass grows well in customer's countries and optimal agronomic practices are developed.
Gross Profit
The resulting effect on these changes in revenues and cost of revenues for the six months ended June 30, 2013 compared to the same period in 2012 was an increase in gross profit from $2,000 for the six months ended June 30, 2012 to $48,000 for the six months ended June 30, 2013.
Operations Expenses
Operations expenses were $17,000 and $0 for the six months ended June 30, 2013 and 2012, respectively, an increase of $17,000. Effective September 30, 2012, the Company separated from VIASPACE Green Energy as described in Note 2, and started incurring its own expenses in the grass business. Prior to September 30, 2012, the Company did not incur these costs. Operations expense is composed of plantation expenses related to the Company's test plot in California and costs associated with agronomy support and travel for potential customers.
Selling, General and Administrative Expenses
Selling, general and administrative expenses were $316,000 and $518,000 for the six months ended June 30, 2013 and 2012, respectively, a decrease of $202,000. Stock compensation expense decreased $408,000 in 2013 as compared with 2012 as less stock was issued by the Company to pay its employees. Stock option compensation expense decreased $31,000 in 2013 as compared with 2012 due to the completion of vesting of some stock option grants in 2012. Payroll and benefits increased $172,000 for the six months ended June 30, 2013 as compared to the same period in 2012 due to higher compensation levels in 2012 and the Company paying its employees in cash as opposed to stock. Legal fees decreased $12,000 in 2013 as compared with 2012 due to higher levels of legal fees in 2012 associated with the separation of the Company from VGE. Accounting fees increased $23,000 in 2013 as compared with 2012 due to increased costs associated with the Company's annual audit. Consulting fees increased $4,000 in 2013 as the Company hired additional consultants in 2013 as compared with 2012. Public relations expenses increased $11,000 in 2013 as the Company incurred increased investor relations expenses. Insurance expenses increased $30,000 in 2013 due to increases in the Company directors and officers' insurance costs. Other selling, general and administrative expenses, net, increased by $9,000 for the six months ended June 30, 2013 compared with the same period in 2012.
Loss from Operations
The resulting effect on these changes in gross profits, operations expenses, and selling, general and administrative expenses was a decrease in loss from operations in 2013. For the six months ended June 30, 2012, the Company had a loss from operations of $516,000 compared with a loss from operations of $285,000 for the six months ended June 30, 2013, a decrease of $231,000.
Discontinued Operations
Loss from discontinued operations was $272,000 for the six months ended June 30, 2012 and $0 for the six months ended June 30, 2013. This loss from discontinued operations relates to the losses of VGE for the six months ended June 30, 2012 as a result of the Company eliminating all ownership interests in the entity during 2012.
Liquidity and Capital Resources
The Company's net loss for the six months ended June 30, 2013 was $325,000. Non-cash expenses totaled $217,000 for the six months ended June 30, 2013 primarily due to stock options, stock compensation expense, and amortization of debt discount. Changes in operating assets and liabilities used $58,000 of cash in 2013. Net cash used in operating activities for operations was $166,000 for the six months ended June 30, 2013.
Net cash provided by financing activities was $135,000 related to loans the Company received from Director Kevin Schewe.
The Company has incurred significant losses from operations, resulting in an accumulated deficit of $49,115,000 at June 30, 2013. The Company expects such losses to continue. However, on September 30, 2012, the Company entered into Loan Agreement with Director Kevin Schewe whereby Dr. Schewe agreed to fund the Company up to $1,000,000 over the next five years. The Company expects loans from Dr. Schewe and contracts from the sublicense to GKG to fund the operations for the foreseeable future. The Company expects to continue as a going concern, however no assurance can be given that Dr. Schewe will continue to fund the Company or that contracts will be obtained in the future that will be profitable. As of June 30, 2013, the Company had remaining availability under the note of $730,000. Based upon our cash requirements for our plan of operations and our current dividend policy of investing any available cash to our operations, we do not plan to distribute any cash to our shareholders.
Contractual Obligations
There are no long-term contractual obligations other than employment agreements as detailed below.
Employment Agreements
Effective October 1, 2012, the Company entered into one-year employment agreements with Carl Kukkonen and Stephen Muzi. Dr. Kukkonen serves as Chief Executive Officer of the Company and Mr. Muzi serves as Chief Financial Officer, Treasurer and Secretary. Dr. Kukkonen will receive a salary of $160,000 per annum and Mr. Muzi would receive $60,000 per annum. Each of them would also be entitled to a bonus as determined by the Company's Board of Directors, customary insurance and health benefits, and reimbursement for out-of-pocket expenses in the course of his employment. Additionally, Dr. Kukkonen is to receive 20 business days paid leave per year and Mr. Muzi is to receive 10 business days paid leave.
Inflation and Seasonality
We have not experienced material inflation during the past five years. Seasonality has historically not had a material effect on our operations.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements as of June 30, 2013.
Aug 14, 2013
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(EDGAR Online via COMTEX) -- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
The following discussion contains certain statements that constitute "forward-looking statements". Such statements appear in a number of places in this Report, including, without limitation, "Management's Discussion and Analysis of Financial Condition or Plan of Operation." These statements are not guarantees of future performance and involve risks, uncertainties and requirements that are difficult to predict or are beyond our control. Our future results may differ materially from those currently anticipated depending on a variety of factors, including those described below under "Risks Related to Our Future Operations" and our filings with the Securities and Exchange Commission. The following should be read in conjunction with the unaudited Consolidated Financial Statements and notes thereto that appear elsewhere in this Report and in conjunction with our 2012 Annual Report on Form 10-K as filed with the SEC.
VIASPACE Overview
VIASPACE Inc. ("we", "us", "VIASPACE", or the "Company") was founded in July 1998 and is a renewable energy company with a global reach. Our renewable energy is based on biomass-- in particular our dedicated energy crop with the trademarked name "Giant King(TM) Grass" ("GKG"), which we are able to commercialize throughout the world, except for the People's Republic of China and Taiwan, through a sublicense for Giant King Grass we obtained from VIASPACE Green Energy Inc. ("VGE").
GKG can be burned in 100% biomass power plants to generate electricity; made into pellets that can be burned together with coal to reduce carbon emissions from existing power plants; generate bio methane through anaerobic digestion, and can be used as a feedstock for low carbon liquid biofuels for transportation, biochemicals and bio plastics. Cellulosic ethanol, bio butanol and other liquid cellulosic biofuels, do not use corn or other food sources as feedstock. GKG can also be used as animal feed. GKG and other plants absorb and store carbon dioxide from the atmosphere as they grow. When they are burned, they release the carbon dioxide back into the atmosphere, but it is the same carbon dioxide that was removed from the atmosphere, and so this process is carbon neutral. Small amounts of fossil fuel are used by the farm equipment, transportation of GKG and fertilizer, so that the overall process of growing and burning GKG probably has some net carbon dioxide emissions, but much lower emissions than burning coal or other fossil fuels directly to create the same amount of energy. GKG has been independently tested by customers and been shown to have excellent energy content, high bio methane production, and the cellulosic sugar content needed for biofuels and biochemicals.
Through September 30, 2012, VIASPACE owned 75.6% of the equity interests of VGE. VGE and its subsidiaries Inter Pacific Arts Corporation ("IPA BVI") and Guangzhou Inter Pacific Arts ("IPA China") specialize in the manufacturing of high quality, copyrighted, framed artwork sold in US retail chain stores. In addition, VGE has an exclusive license to Giant King Grass, a proprietary dedicated energy crop. On September 30, 2012, the Company executed agreements to formalize the separation of the Company and VGE and cause the orderly transfer of all of the Company's equity interest in VGE to Changs, LLC, a company controlled by Sung Chang, President of VGE and a former Director of the Company. In addition, agreements have been executed which give VGE the right to commercially develop Giant King Grass in China and Taiwan and give VIASPACE the right to commercially develop Giant King Grass in the rest of the world outside China and Taiwan. Under the agreements, the VIASPACE secured debt previously owed to Chang will not have to be paid although it may be used to offset any outside claims made against Chang. Since the Company no longer has any equity interest in VGE, the Company can no longer consolidate the operations of VGE into the operations of the Company. The operating results of VGE prior to September 30, 2012 are shown as discontinued operations in the Company's financial statements.
The Company's web site is www.VIASPACE.com. Information contained on, or accessible through, our website should not be deemed as part of this report.
Critical accounting policies and estimates
Financial Reporting Release No. 60, "Cautionary Advice Regarding Disclosure About Critical Accounting Policies" ("FRR60") issued by the SEC, suggests companies provide additional disclosure and commentary on those accounting policies considered most critical. FRR 60 considers an accounting policy critical if it is important to the Company's financial condition and results of operations, and requires significant judgment and estimates on the part of management in its application. For a summary of the Company's significant accounting policies, including the critical accounting policies discussed below, see the accompanying notes to the consolidated financial statements.
The preparation of the Company's financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, which are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The result of these evaluations forms the basis for making judgments about the carrying values of assets and liabilities and the reported amount of expenses that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions. The following accounting policies discussed below require significant management judgments and estimates.
Revenue Recognition - The Company has two revenue models for GKG: 1. grass plantation integrated with a power plant or processing facility such as a pellet mill under company or joint venture control, and 2. contract plantation establishment, support and licensing for a customer that owns and operates the plantation and power plant.
For 2013, revenue includes amounts earned through consulting agreements and collaborative agreements for the joint operation of test plots to establish that GKG grows well in the area and optimal agronomic practices are developed. Revenue earned from collaborative agreements is comprised of negotiated payments for the operations of the test plots. Deferred revenue represents payments received which are related to future performance.
With regard to revenue recognition in connection with agreements that include multiple deliverables, management reviews the relevant terms of the agreements and determines whether such deliverables should be accounted for as a single unit of accounting in accordance with FASB ASC 605-25, Multiple-Element Arrangements. If it is determined that the items do not have stand-alone value, then such deliverables are accounted for as a single unit of accounting and any payments received pursuant to such agreement, including any upfront or development milestone payments and any payments received for support services, will be deferred and included in deferred revenue within our balance sheet until such time as management can estimate when all of such deliverables will be delivered, if ever. Management reviews and reevaluates such conclusions as each item in the arrangement is delivered and circumstances of the development arrangement change.
The Company accounts for equity instruments issued to consultants and vendors in exchange for goods and services in accordance with the provisions of FASB ASC Topic 505-50, "Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods or Services" and "Accounting Recognition for Certain Transactions Involving Equity Instruments Granted to Other than Employees". The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. In accordance with FASB ASC Topic 505-50, an asset acquired in exchange for the issuance of fully vested, non-forfeitable equity instruments should not be presented or classified as an offset to equity on the grantor's balance sheet once the equity instrument is granted for accounting purposes. Accordingly, the Company records the fair value of the fully vested, non-forfeitable common stock issued for future consulting services as prepaid expenses in its consolidated balance sheet.
The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There is no assurance that actual results will not differ from these estimates.
In accordance with FASB ASC 360-10-35, "Property, Plant, and Equipment", management reviews our long-lived asset groups, including property and equipment and other intangible assets, for impairment whenever events indicate that their carrying amounts may not be recoverable. Some of the events that we consider as impairment indicators for our long-lived assets, including goodwill, are:
£ our significant underperformance relative to expected operating results;
£ significant adverse change in legal factors or in the business climate;
£ an adverse action or assessment by a regulator;
£ unanticipated competition;
£ a loss of key personnel;
£ significant decrease in the market value of a long-lived asset; and
£ significant adverse change in the extent or manner in which a long-lived asset is being used or its physical condition.
When management determines that one or more impairment indicators are present for an asset group, we compare the carrying amount of the asset group to net future undiscounted cash flows that the asset group is expected to generate. If the carrying amount of the asset group is greater than the net future undiscounted cash flows, an impairment loss is recognized for the excess of the carrying amount of the asset group over its fair value. The management of the Company has concluded that there were no impairment indicators relating to long-lived assets at June 30, 2013.
Results of Operations
Three Months Ended June 30, 2013 Compared to June 30, 2012
Revenues
Revenues were $32,000 and $27,000 for the three months ended June 30, 2013 and 2012, respectively, an increase of $5,000. The revenues relate to collaborative agreements for the joint operation of test plots to establish that Giant King Grass grows well in customer's countries and optimal agronomic practices are developed.
Cost of Revenues
Costs of revenues were $13,000 and $25,000 for the three months ended June 30, 2013 and 2012, respectively, a decrease of $12,000. The costs relate to collaborative agreements for the joint operation of test plots to establish that Giant King Grass grows well in customer's countries and optimal agronomic practices are developed.
Gross Profit
The resulting effect on these changes in revenues and cost of revenues for the three months ended June 30, 2013 compared to the same period in 2012 was an increase in gross profit from $2,000 for the three months ended June 30, 2012 to $19,000 for the three months ended June 30, 2013.
Operations Expenses
Operations expenses were $6,000 and $0 for the three months ended June 30, 2013 and 2012, respectively, an increase of $6,000. Effective September 30, 2012, the Company separated from VIASPACE Green Energy as described in Note 2, and started incurring its own expenses in the grass business. Prior to September 30, 2012, the Company did not incur these costs. Operations expense is composed of plantation expenses related to the Company's test plot in California and costs associated with agronomy support and travel for potential customers.
Selling, General and Administrative Expenses
Selling, general and administrative expenses were $148,000 and $202,000 for the three months ended June 30, 2013 and 2012, respectively, a decrease of $54,000. Stock compensation expense decreased $160,000 in 2013 as compared with 2012 as less stock was issued by the Company to pay its employees. Stock option compensation expense decreased $2,000 in 2013 as compared with 2012 due to the completion of vesting of some stock option grants in 2012. Payroll and benefits increased $86,000 for the three months ended June 30, 2013 as compared to the same period in 2012 due to higher compensation levels in 2012 and the Company paying its employees in cash as opposed to stock. Legal fees decreased $12,000 in 2013 as compared with 2012 due to higher levels of legal fees in 2012 associated with the separation of the Company from VGE. Accounting fees increased $17,000 in 2013 as compared with 2012 due to increased costs associated with the Company's annual audit. Public relations expenses increased $5,000 in 2013 as the Company incurred increased investor relations expenses. Insurance expenses increased $15,000 in 2013 due to increases in the Company directors and officers' insurance costs. Other selling, general and administrative expenses, net, decreased by $3,000 for the three months ended June 30, 2013 compared with the same period in 2012.
Loss from Operations
The resulting effect on these changes in gross profits, operations expenses, and selling, general and administrative expenses was a decrease in loss from operations in 2013. For the three months ended June 30, 2012, the Company had a loss from operations of $200,000 compared with a loss from operations of $135,000 for the three months ended June 30, 2013, a decrease of $65,000.
Discontinued Operations
Loss from discontinued operations was $3,000 for the three months ended June 30, 2012 and $0 for the three months ended June 30, 2013. This loss from discontinued operations relates to the losses of VGE, DMFCC and Ionfinity for the three months ended June 30, 2012 as a result of the Company eliminating all ownership interests in the entity during 2012.
Six Months Ended June 30, 2013 Compared to June 30, 2012
Revenues
Revenues were $63,000 and $27,000 for the six months ended June 30, 2013 and 2012, respectively, an increase of $36,000. The revenues relate to collaborative agreements for the joint operation of test plots to establish that Giant King Grass grows well in customer's countries and optimal agronomic practices are developed.
Cost of Revenues
Costs of revenues were $15,000 and $25,000 for the six months ended June 30, 2013 and 2012, respectively, a decrease of $10,000. The costs relate to collaborative agreements for the joint operation of test plots to establish that Giant King Grass grows well in customer's countries and optimal agronomic practices are developed.
Gross Profit
The resulting effect on these changes in revenues and cost of revenues for the six months ended June 30, 2013 compared to the same period in 2012 was an increase in gross profit from $2,000 for the six months ended June 30, 2012 to $48,000 for the six months ended June 30, 2013.
Operations Expenses
Operations expenses were $17,000 and $0 for the six months ended June 30, 2013 and 2012, respectively, an increase of $17,000. Effective September 30, 2012, the Company separated from VIASPACE Green Energy as described in Note 2, and started incurring its own expenses in the grass business. Prior to September 30, 2012, the Company did not incur these costs. Operations expense is composed of plantation expenses related to the Company's test plot in California and costs associated with agronomy support and travel for potential customers.
Selling, General and Administrative Expenses
Selling, general and administrative expenses were $316,000 and $518,000 for the six months ended June 30, 2013 and 2012, respectively, a decrease of $202,000. Stock compensation expense decreased $408,000 in 2013 as compared with 2012 as less stock was issued by the Company to pay its employees. Stock option compensation expense decreased $31,000 in 2013 as compared with 2012 due to the completion of vesting of some stock option grants in 2012. Payroll and benefits increased $172,000 for the six months ended June 30, 2013 as compared to the same period in 2012 due to higher compensation levels in 2012 and the Company paying its employees in cash as opposed to stock. Legal fees decreased $12,000 in 2013 as compared with 2012 due to higher levels of legal fees in 2012 associated with the separation of the Company from VGE. Accounting fees increased $23,000 in 2013 as compared with 2012 due to increased costs associated with the Company's annual audit. Consulting fees increased $4,000 in 2013 as the Company hired additional consultants in 2013 as compared with 2012. Public relations expenses increased $11,000 in 2013 as the Company incurred increased investor relations expenses. Insurance expenses increased $30,000 in 2013 due to increases in the Company directors and officers' insurance costs. Other selling, general and administrative expenses, net, increased by $9,000 for the six months ended June 30, 2013 compared with the same period in 2012.
Loss from Operations
The resulting effect on these changes in gross profits, operations expenses, and selling, general and administrative expenses was a decrease in loss from operations in 2013. For the six months ended June 30, 2012, the Company had a loss from operations of $516,000 compared with a loss from operations of $285,000 for the six months ended June 30, 2013, a decrease of $231,000.
Discontinued Operations
Loss from discontinued operations was $272,000 for the six months ended June 30, 2012 and $0 for the six months ended June 30, 2013. This loss from discontinued operations relates to the losses of VGE for the six months ended June 30, 2012 as a result of the Company eliminating all ownership interests in the entity during 2012.
Liquidity and Capital Resources
The Company's net loss for the six months ended June 30, 2013 was $325,000. Non-cash expenses totaled $217,000 for the six months ended June 30, 2013 primarily due to stock options, stock compensation expense, and amortization of debt discount. Changes in operating assets and liabilities used $58,000 of cash in 2013. Net cash used in operating activities for operations was $166,000 for the six months ended June 30, 2013.
Net cash provided by financing activities was $135,000 related to loans the Company received from Director Kevin Schewe.
The Company has incurred significant losses from operations, resulting in an accumulated deficit of $49,115,000 at June 30, 2013. The Company expects such losses to continue. However, on September 30, 2012, the Company entered into Loan Agreement with Director Kevin Schewe whereby Dr. Schewe agreed to fund the Company up to $1,000,000 over the next five years. The Company expects loans from Dr. Schewe and contracts from the sublicense to GKG to fund the operations for the foreseeable future. The Company expects to continue as a going concern, however no assurance can be given that Dr. Schewe will continue to fund the Company or that contracts will be obtained in the future that will be profitable. As of June 30, 2013, the Company had remaining availability under the note of $730,000. Based upon our cash requirements for our plan of operations and our current dividend policy of investing any available cash to our operations, we do not plan to distribute any cash to our shareholders.
Contractual Obligations
There are no long-term contractual obligations other than employment agreements as detailed below.
Employment Agreements
Effective October 1, 2012, the Company entered into one-year employment agreements with Carl Kukkonen and Stephen Muzi. Dr. Kukkonen serves as Chief Executive Officer of the Company and Mr. Muzi serves as Chief Financial Officer, Treasurer and Secretary. Dr. Kukkonen will receive a salary of $160,000 per annum and Mr. Muzi would receive $60,000 per annum. Each of them would also be entitled to a bonus as determined by the Company's Board of Directors, customary insurance and health benefits, and reimbursement for out-of-pocket expenses in the course of his employment. Additionally, Dr. Kukkonen is to receive 20 business days paid leave per year and Mr. Muzi is to receive 10 business days paid leave.
Inflation and Seasonality
We have not experienced material inflation during the past five years. Seasonality has historically not had a material effect on our operations.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements as of June 30, 2013.
Aug 14, 2013
(c) 1995-2013 Cybernet Data Systems, Inc. All Rights Reserved
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