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EX-31 - 302 CERTIFICATION OF MARK L. MERIWETHER - Oakridge Global Energy Solutions, Inc. | ex31.htm |
EX-32 - 906 CERTIFICATION - Oakridge Global Energy Solutions, Inc. | ex32.htm |
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2011
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT
For the transition period from ____________ to____________
Commission File No. 000-50032
OAK RIDGE MICRO-ENERGY, INC.
(Exact name of Registrant as specified in its charter)
Colorado | 94-3431032 |
(State or Other Jurisdiction of | (I.R.S. Employer Identification No.) |
incorporation or organization) |
|
3046 East Brighton Place
Salt Lake City, UT 84121
(Address of Principal Executive Offices)
(801) 201-7635
(Registrants Telephone Number, including area code)
N/A
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the Registrant has (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [ ]
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [X]
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [ ] No [X]
Outstanding Shares
Indicate the number of shares outstanding of each of the Registrants classes of common stock, as of the latest practicable date: May 20, 2011 3,368,458 shares of common stock.
PART I
Item 1. Financial Statements
The Financial Statements of the Registrant required to be filed with this 10-Q Quarterly Report were prepared by management and commence below, together with related notes. In the opinion of management, the Financial Statements fairly present the financial position of the Registrant.
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Oak Ridge Micro-Energy, Inc.
(A Development Stage Company)
Condensed Consolidated Balance Sheets
| March 31, 2011 (Unaudited) | December 31, 2010 (Audited) | |
Assets |
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| |
Current assets |
|
| |
Cash | $419 | $12,664 | |
Total current assets | 419 | 12,664 | |
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| |
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| |
Intangible assets - net | 28,036 | 30,579 | |
Total assets | $28,455 | $43,243 | |
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| |
Liabilities and Shareholders' Equity |
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| |
Accounts payable | $18,152 | $16,657 | |
Royalty payable | 36,250 | 35,000 | |
Accrued liabilities - related parties | 12,000 | 12,000 | |
Accrued liabilities - other | 37,949 | 37,949 | |
Shareholder Loan | 6,050 | - | |
Total current liabilities | 110,401 | 101,606 | |
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|
| |
Shareholders' Equity |
|
| |
Common Stock - 100,000,000 authorized at $0.001 par value, 3,368,458 issued and outstanding at March 31, 2011 and December 31, 2010 | 3,368 | 3,368 | |
Additional paid-in capital | 17,609,052 | 17,609,052 | |
Deficit accumulated prior to development stage | (2,319,595) | (2,319,595) | |
Deficit accumulated during development stage | (15,374,771) | (15,351,188) | |
Total shareholders equity | (81,946) | (58,363) | |
Total liabilities and shareholders equity | $28,455 | $43,243 |
See Accompanying Notes to the Financial Statements
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Oak Ridge Micro-Energy, Inc.
(A Development Stage Company)
Condensed Consolidated Statements of Operations
| For the Three Months Ended |
| ||
| March 31, | From Reactivation | ||
| 2011 | 2010 | [January1, 1996] to March 31, 2011 | |
Revenues | $- | $- | $138,251 | |
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| |
Operating expenses: |
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| |
General and administrative | 21,042 | 66,445 | 10,348,392 | |
Research and development | - | - | 1,388,891 | |
Sales and marketing | - | - | 5,061 | |
(Gain)/loss of sale of assets | - | - | 4,361,078 | |
Depreciation and amortization | 2,542 | 2,542 | 814,525 | |
Total operating expenses | 23,584 | 68,987 | 16,917,947 | |
Operating income/(loss) | (23,584) | (68,987) | (16,779,696) | |
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Other income/(expenses): |
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Interest and other income | 1 | 204 | 130,002 | |
Interest expense | - | - | (340,159) | |
Gain on settlement of debt | - | - | 1,615,082 | |
Total other income/(expenses) | 1 | 204 | 1,404,925 | |
Net income/(loss) | $(23,583) | $ (68,783) | $ (15,374,771) | |
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Basic Loss Per Share | $ (0.01) | $ (0.02) |
| |
Basic Weighted Shares Outstanding | 3,368,458 | 3,368,458 |
|
See Accompanying Notes to the Financial Statements
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Oak Ridge Micro-Energy, Inc.
(A Development Stage Company)
Condensed Consolidated Statements of Cash Flows
| March 31 | From Reactivation | |
| 2011 | 2010 | [January 1, 1996] to March 31, 2011 |
Cash flow from operating activities: |
|
|
|
Net income/(loss) | $ (23,583) | $ (68,783) | $ (15,374,771) |
Adjustment to reconcile net income/(loss) to net cash from operations: |
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(Gain)/loss on disposal of assets | - | - | 4,361,078 |
Loss on impairment of patents | - | - | 2,857 |
Gain on settlement of debt | - | - | (1,615,082) |
Issuance of stock for expenses and services | - | - | 7,301,598 |
Depreciation and amortization | 2,542 | 2,542 | 814,523 |
(Increase)/decrease in prepaid expenses | - | 1,976 | - |
Increase/(decrease) in accounts payable/royalty payment | 2,746 | (16,531) | 433,787 |
Increase/(decrease) in accrued liabilities | - | - | 37,950 |
Increase/(decrease) in accrued liabilities related | - | (3,500) | 8,809 |
Net cash from operating activities | (18,295) | (84,296) | (4,029,251) |
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Cash Flow from investing activities: |
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Purchase of equipment | - | - | (1,231,601) |
Purchase of intangible assets | - | - | (79,725) |
Proceeds from sale of equipment | - | - | 713,595 |
Net cash from investing activities | - | - | (597,731) |
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Cash flow from financing activities: |
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Loan from Shareholder | 6,050 | - | 6,050 |
Proceeds from stock issued | - | - | 4,621,351 |
Net cash from financing activities | 6,050 | - | 4,627,401 |
Net change in cash and cash equivalents | (12,245) | (84,296) | 419 |
Cash and cash equivalents, beginning of period | 12,664 | 394,037 | - |
Cash and cash equivalents, end of period | $419 | $309,741 | $419 |
Cash paid for taxes | $0 | $0 |
|
Cash paid for interest | $0 | $0 |
|
See Accompanying Notes to the Financial Statements
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Oak Ridge Micro-Energy, Inc.
(Development Stage Company)
Notes to Condensed Consolidated Financial Statements
Note 1 Description of Business
Oak Ridge Micro-Energy, Inc. (referred to hereafter as the Company or Oak Ridge) was incorporated on August 15, 1986 under the laws of the state of Colorado, with the original name Vates Corp. Since inception, the Company has completed six name changes resulting in its present name. With the 2002 acquisition of its sole subsidiary, Oak Ridge Micro-Energy, Inc., a Nevada Corporation (Oak Ridge Nevada), the name of the Company was changed from Global Acquisitions, Inc. The Company has changed the par value of its stock and effected four stock splits. The accompanying financial statements have been prepared showing the after spilt effect with a par value of $0.001 since inception.
The Company became inactive after 1995 and is considered to be in the development stage after that date. The Companys principal operations are the further development and commercialization of the rechargeable thin-film lithium battery.
The interim financial data are unaudited; however, in the opinion of the management of the Company, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of (a) the financial position at March 31, 2011 and December 31, 2010 (b) the results of operations for the three-month periods ended March 31, 2011 and 2010, and (c) cash flows for the three-month period ended March 31, 2011 and 2010. The financial statements should be read in conjunction with the Companys annual report on 10-K for the year ended December 31, 2010.
The results of operations for the three-month period ended March 31, 2011 are not necessarily indicative of those to be expected for the entire year.
Note 2 Basic and Diluted Net Income (Loss) Per Share
Loss per common share is based on the weighted-average number of common shares outstanding. Diluted loss per share is computed using weighted average number of common shares plus dilutive common share equivalents outstanding during the period using the treasury stock method. There are no common stock equivalents outstanding, thus, basic and diluted loss per share calculations are the same.
Note 3 Technology License Agreement
On December 28, 2001, the Company entered into a license and royalty agreement to further develop and market a rechargeable thin-film lithium battery for use in a variety of applications, such as, RFID tags for airlines and supply chain management, drug delivery systems and implantable medical devices, and non-volatile memory backup. The terms of the agreement included payments of $90,000 in cash and stock of the Company (completed).
During 2007, the Company renegotiated the minimum royalty payment to $5,000 per year. As of March 31, 2011, the Company had accrued a liability of $36,250 for the current and prior years minimum royalty payments.
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Oak Ridge Micro-Energy, Inc.
(Development Stage Company)
Notes to Condensed Consolidated Financial Statements
Note 4 - Related Parties
The sole director and executive officer and his family have acquired approximately 19% of the Companys outstanding common stock. The Company received a shareholder loan in the amount of $6,050 during the quarter. The unsecured loan bears 5% interest and is due on demand.
Effective February 1, 2011, the directors resolved to suspend payment of consulting fees to the Officer of the Company. The payment of consulting fees to the Officer will be reinstated once the Company generates positive operating cash flow.
Note 5 Recent Accounting Pronouncements
The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its consolidated financial statements.
Note 6 Going Concern
The Company has accumulated losses since inception, has a working capital deficit, and has not yet been able to generate profits from operations. Operating capital has been raised through the sale of common stock. These factors raise substantial doubt about the Companys ability to continue as a going concern.
Management plans are to seek additional debt or equity financing. If management is unsuccessful in these efforts, discontinuance of operations is possible. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
Forward-looking Statements
ALL FORWARD-LOOKING STATEMENTS CONTAINED HEREIN, AND SPECIFICALLY UNDER THIS HEADING, ARE DEEMED BY OUR COMPANY TO BE COVERED BY AND TO QUALIFY FOR THE SAFE HARBOR PROTECTION PROVIDED BY THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. STOCKHOLDERS AND PROSPECTIVE STOCKHOLDERS SHOULD UNDERSTAND THAT SEVERAL FACTORS GOVERN WHETHER ANY FORWARD-LOOKING STATEMENT CONTAINED HEREIN WILL BE OR CAN BE ACHIEVED. ANY ONE OF THESE FACTORS COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE PROJECTED HEREIN. THESE FORWARD- LOOKING STATEMENTS INCLUDE PLANS AND OBJECTIVES OF MANAGEMENT FOR FUTURE OPERATIONS, INCLUDING PLANS AND OBJECTIVES RELATING TO THE PRODUCTS AND THE FUTURE ECONOMIC PERFORMANCE OF OUR COMPANY. ASSUMPTIONS RELATING TO THE FOREGOING INVOLVE JUDGMENTS WITH RESPECT TO, AMONG OTHER THINGS, FUTURE ECONOMIC, COMPETITIVE AND MARKET CONDITIONS, FUTURE BUSINESS DECISIONS, AND THE TIME AND MONEY REQUIRED TO SUCCESSFULLY COMPLETE DEVELOPMENT PROJECTS, ALL OF WHICH ARE DIFFICULT OR IMPOSSIBLE TO PREDICT ACCURATELY AND MANY OF WHICH ARE BEYOND THE CONTROL OF OUR COMPANY. ALTHOUGH WE BELIEVE THAT THE ASSUMPTIONS UNDERLYING THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN ARE REASONABLE, ANY OF THOSE ASSUMPTIONS COULD PROVE INACCURATE AND, THEREFORE, THERE CAN BE NO ASSURANCE THAT THE RESULTS CONTEMPLATED IN ANY OF THE FORWARD- LOOKING STATEMENTS CONTAINED HEREIN WILL BE REALIZED. BASED ON ACTUAL EXPERIENCE AND BUSINESS DEVELOPMENTS, THE IMPACT OF WHICH MAY CAUSE OUR COMPANY TO ALTER OUR MARKETING, CAPITAL EXPENDITURE PLANS OR OTHER BUDGETS, WHICH MAY IN TURN AFFECT OUR COMPANYS RESULTS OF OPERATIONS IN LIGHT OF THE SIGNIFICANT UNCERTAINTIES INHERENT IN THE FORWARD-LOOKING STATEMENTS INCLUDED HEREIN, THE INCLUSION OF ANY SUCH STATEMENT SHOULD NOT BE REGARDED AS A REPRESENTATION BY OUR COMPANY OR ANY OTHER PERSON THAT THE OBJECTIVES OR PLANS OF OUR COMPANY WILL BE ACHIEVED.
Plan of Operation
We have developed a new, thin-film lithium battery technology for commercial, consumer, industrial, security and military use. Our corporate objective is to capitalize on delivering solutions for the worlds micro-power needs.
The battery is lithium-based and is manufactured to be thinner than common plastic wrap. Like the larger, traditional lithium batteries that power laptops and cell phones, this lithium battery is also rechargeable. Unlike traditional lithium batteries, the thin-film battery is intended for small, hi-tech, low power applications, some of which have not yet been developed or brought to market.
Current anticipated uses include smart credit cards, security cards, wireless sensors, radio frequency identification tags, chip memory backup and advanced drug delivery devices. Future applications will grow as the availability of thin-film batteries increases.
The batteries must be substantially manufactured in the United States, under our licensing agreement (the Licensing Agreement), unless a waiver is obtained. There may be exportation limitations into certain countries; there are no environmental compliance issues that we know of; and raw materials and manufacturing equipment are readily available from several vendors in the United States.
We have now completed our research stage and are entering the next stage in which we will focus our energy and resources on marketing and licensing the thin-film battery covered by our various patents to suitable partners across all industries. We have been in contact with several large-scale, multinational companies who have expressed interest in our thin-film battery technology. This step is stage 3 of our business plan.
We have spent the first several years focusing on enhancing and improving the original core thin-film battery technology and have dedicated the facility in Oak Ridge, TN, to research and development, testing and prototyping. We feel we have reached the stage where all conceivable improvements and enhancements that would be required for product integration into the largest and most profitable markets have been accomplished. Through our testing, we have, among many other accomplishments, replaced the Lipon, the core of the original thin-film battery; changed the composition of the thin-film
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battery; developed a protective coating that makes it more durable through resistance to oxygen and moisture; improved long-life thin-film battery packages, including getters and methods for making improved long-life thin-film battery packages; developed a new anode-cathode combination (the active battery components which allows for record high temperature cycles of 170 degrees Celsius; and developed a thin-film battery that operates between 2 V and 1 V.
During the prior several years, numerous large-scale, multinational companies have contacted us with interest in our TFB Technology. We believe our unique patented technology is ready for large-scale production and commercialization into many viable product lines. We intend to move into a strong and aggressive licensing mode. We plan to retain a top IP/licensing sales and marketing company, which specializes in licensing specialized technology to help achieve the goal of integrating the revolutionary TFB Technology into as many applications and product lines as possible. Oak Ridge Micro-Energy is currently in discussion with several companies seeking to integrate our technology into their various product lines and new designs. These companies have expressed an interest in licensing our proprietary TFB Technology.
We are currently involved in various stages of negotiations with other companies about the potential of license agreements or the sell of our intellectual property. We also continue to seek other business ventures and opportunities to increase shareholder value and enhance our business results, including acquisitions, divestitures and joint ventures. These activities may result in future cash proceeds and payments. If we are unsuccessful in these activities, we will have to seek additional debt or equity financing. We can provide no assurances that if additional funds are needed by us that we will be able to obtain financing. Due to the economic downturn and a difficult financing environment, we may have to change our development plan.
On March 10, 2008, we sold our laboratory equipment to Planar Energy Devices, Inc., with a lease-back arrangement to allow us to use the equipment for up to 18 months; the 18 months has expired; however, we believe these facilities will be available at a reasonable price, if required.
Managements Discussion and Analysis of Financial Condition and Results of Operations
Period ended March 31, 2011, compared to period ended March 31, 2010.
Revenue
We had $0 in revenue in 2011, and $0 in revenue for 2010.
Operating Expenses
Research and development expenses in the three-month period ended March 31, 2011 were $0, compared to $0 during the three-month period ended March 31, 2010. We discontinued our research and development program and eliminated our facility in Oak Ridge, TN during 2009. At this time, we do not expect further research and development expenses will be necessary.
General and Administrative expenses were $21,042 in the three-month period ended March 31, 2011, compared to $66,445 in the three-month period ended March 31, 2010. These charges consisted of travel expenses, legal and professional charges and other miscellaneous charges related to general business operations. The decrease in general and administrative expenses is due to the suspension of the payments of consulting fees to an Officer of the Company.
Liquidity and Capital Resources
We incurred a net loss of $23,583 for the period ended March 31, 2011. Cash on hand totaled $419. We are seeking additional debt or equity financing. We can provide no assurances that if additional funds are needed by us that we will be able to obtain financing. Due to the economic downturn and a difficult financing environment, we may have to change our development plan. We currently have an understanding with a principal shareholder who is our sole officer and director to provide the Company with funds as needed. We received $6,050 from this shareholder during the quarter ended March 31, 2011. This loan bears 5% interest and is due on demand.
Off-Balance Sheet Arrangements
We had no off balance sheet arrangements during the quarter ended March 31, 2011.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Not required.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) under the Exchange Act as of the end of the period covered by this Quarterly Report on Form 10-Q. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
Based on that evaluation, our chief executive officer and chief financial officer concluded that, as of March 31, 2011, our disclosure controls and procedures were, subject to the limitations noted above, effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules, regulations and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
Our management, with the participation of the chief executive officer and chief financial officer, has concluded there were no significant changes in our internal controls over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 1A. Risk Factors.
Not required.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Removed and Reserved.
Item 5. Other Information.
None.
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Item 6. Exhibits.
Exhibit No. Identification of Exhibit
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized
Oak Ridge Micro-Energy, Inc.
Date: | May 23, 2010 |
| By: | /s/Mark L. Meriwether |
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| Mark L. Meriwether, President and Director |
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