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EX-32 - EXHIBIT 32 - Graphene & Solar Technologies Ltdex32.htm
EX-31.2 - EXHIBIT 31.2 - Graphene & Solar Technologies Ltdex31_2.htm
EX-31.1 - EXHIBIT 31.1 - Graphene & Solar Technologies Ltdex31_1.htm

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

☒  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarterly period ended March 31, 2020

 

☐  Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the transition period from __________ to __________

 

Commission File Number: 333-174194

 

GRAPHENE & SOLAR TECHNOLOGIES LIMITED
(Exact name of registrant as specified in its charter)

 

COLORADO   27-2888719
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification No.)

 

433 N. Camden Drive, Ste. 600

Beverly Hills, CA 90210

(Address of principal executive offices, including Zip Code)

 

(310) 887-9966

(Issuer’s telephone number, including area code)

 

(formally known as Solar Quartz Technologies Corporation)

(Former name or former address if changed since last report)

 

Check whether the issuer (1) filed all reports required to be filed by section 13 or 15(d) of the Exchange Act during the past 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  ☐  No  ☒

 

Indicate by check mark whether the registrant has submitted electronically, 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 small reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-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
    Emerging growth company

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐  No  ☒

 

As of July 16, 2020, the registrant had 243,159,567 outstanding shares of common stock.

 

 

 

GRAPHENE & SOLAR TECHNOLOGIES LIMITED

 

FORM 10-Q

 

TABLE OF CONTENTS

 

PART I — FINANCIAL INFORMATION  
Item 1. Consolidated Balance Sheets (Unaudited) 3
Item 2. Consolidated Statements of Operations (Unaudited) 4
Item 3. Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) 5
Item 4. Consolidated Statements of Cash Flows (Unaudited) 6
Item 5. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 9
Item 6. Controls and Procedures. 11
     
PART II — OTHER INFORMATION  12
Item 1 Legal Proceedings  12
Item 1A Risk Factors  12
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds  12
Item 3 Defaults on Senior Securities  12
Item 4 Mine Safety Disclosures  12
Item 5 Other Information  12
Item 6. Exhibits. 12
     
SIGNATURES 13

 

2 

 

GRAPHENE & SOLAR TECHNOLOGIES LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   March 31,  September 30,
  

2020

(Unaudited)

  2019
ASSETS          
Current Assets:          
Cash and cash equivalents  $1,886   $74,241 
Prepaid expenses   11,940    11,684 
Other receivables   4,755    5,197 
Total Current Assets   18,581    91,122 
Other Assets:          
Furniture & Equipment, net of depreciation, $8,006 and $51,946   18,074    27,869 
Quartz Deposits   25,998    28,415 
Total Other Assets   44,072    56,284 
           
Total Assets  $62,653   $147,406 
           
Current Liabilities:          
Accounts payable  $510,239   $402,599 
Accrued interest & other payables   113,698    110,738 
Short term notes payable   60,000    60,000 
Due to related parties   474,445    455,577 
Convertible notes payable-, net of discount $57,301 and $0   111,667    100,747 
Total Current Liabilities   1,270,052    1,129,661 
           
Total Liabilities  $1,270,052   $1,129,661 
           
Stockholders’ Deficit:          
Preferred stock, $0.00001 par value; 5,000,000 shares authorized; none, issued or outstanding          
Common stock, $0.00001 par value; 500,000,000 and 500,000,000 shares authorized; 242,959,567 and 242,449,767 shares issued and outstanding   2,430    2,424 
Additional paid-in capital   9,184,139    9,047,139 
Accumulated other comprehensive income   156,121    100,717 
Accumulated deficit   (10,550,089)   (10,132,535)
           
Total stockholders’ deficit   (1,207,399)   (982,255)
           
Total liabilities and stockholders’ deficit  $66,253   $147,406 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

3 

 

GRAPHENE & SOLAR TECHNOLOGIES Limited

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME

(Unaudited)

 

   Three Months Ending March 31  Six Months Ending March 31,
   2020  2019  2020  2019
Revenues  $   $   $   $ 
                     
Costs and expenses                    
Professional Services   134,237        313,724    100,200 
General and administrative   29,559    197,588    85,410    369,222 
Total costs and expenses   163,796    197,588    399,134    469,422 
                     
Loss from operations   (163,796)   (197,588)   (399,134)   (469,422)
                     
Other income (expense)                    
Interest income                  
Other income   1,975    1,423    4,025    2,857 
Interest expense   (15,079)   (42,770)   (22,445)   (50,531)
Total other income (expense)   (13,104)   (41,347)   (18,420)   (47,674)
                     
Net Income (Loss)  $(176,900)  $(238,935)  $(417,554)  $(517,096)
                     
Comprehensive income (Loss)  $76,505   $7,962   $55,404   $29,613 
                     
Net Comprehensive Income (Loss)  $(100,395)  $(230,793)  $(362,150)  $(487,483)
                     
Income (Loss) per share:                    
Basic and diluted  $(0.00)  $(0.00)  $(0.00)  $(0.00)
                     
Weighted average shares outstanding   242,953,034    236,779,715    242,626,956    236,779,715 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

4 

 

GRAPHENE & SOLAR TECHNOLOGIES LIMITED

(Formerly Solar Quartz Technologies Corporation)

AND SUBSIDIARY

 

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIENCY

(Unaudited)

 

Three and Six Months Ended March 31, 2020 and 2019

 

         Accumulated      
   Common Stock  Additional  Other     Total
      Par  Paid-in  Comprehensive  Accumulated  Stockholders’
   Shares  Value  Capital  Income  Deficit  Deficiency
                   
Balance, September 30, 2019   242,449,767    2,424    9,047,139    100,717    (10,132,535)   (982,255)
Shares issued in connection with the sale of common stock   153,333    3    52,999            53,002 
Debt discount on Convertible Notes           68,220            68,220 
Foreign currency translation adjustment               (21,101)       (21,101)
Net loss                    (240,654)   (240,654)
Balance, December 31, 2019   242,603,100   $2,427   $9,168,358   $79,616   $(10,373,189)  $(1,122,788)
Shares issued in connection with the sale of common stock   356,467    3    15,781            15,784 
Foreign currency translation adjustment               76,505        76,505 
Net loss                    (176,900)   (176,900)
Balance, March 31, 2020   242,959,567   $2,430   $9,184,139   $156,121   $(10,550,089)  $(1,207,399))

 

   Common Stock  Additional  Other     Total
      Par  Paid-in  Comprehensive  Accumulated  Stockholders’
   Shares  Value  Capital  Income  Deficit  Deficiency
                   
Balance September 30, 2018   236,046,151    2,360    7,972,361    92,046    (8,885,981)   (819,214)
Shares issued in connection with the sale of common stock   2,070,333    21    341,073              341,094 
Stock-based compensation expense   600,000    6    100,194              100,200 
Foreign currency translation adjustment                  (36,894)        (36,894)
Net Loss                       (278,643)   (278,643)
Balance December 31, 2018   238,716,48   $2,387   $8,413,628   $128,940   $(9,164,624)  $(619,669)
Shares issued in connection with the sale of common stock   145,455    2    11,998            12,000 
Foreign currency translation adjustment               (7,281)       (7,281)
Net Loss                    (230,974)   (230,974)
Balance March 31, 2019   238,861,93   $2,,389   $8,988,309   $121,659   $(9,395,598)  $(845,924)

  

The accompanying notes are an integral part of these consolidated financial statements

 

5 

 

GRAPHENE & SOLAR TECHNOLOGIES Limited

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the Six-Month Period Ended March 31, 2020 and 2019

(Unaudited)

 

   2020  2019
Cash flows from operating activities          
Net Income (loss)  $(417,554)  $(517,096)
Adjustments to reconcile net income/(loss) to net cash from operating activities:        (7,480)
Stock-based compensation       100,200 
Depreciation expense   8,066    8,451 
Amortization of discount   10,919    29,571 
Change in book value of quartz assets        (1,308)
Change in operating assets and liabilities:          
Accounts payable   127,125    (20,107)
Accrued interest payable   11,463    13,527 
Accrued liabilities         
Derivative liability       42,747 
Change in derivative liability       (2,253)
Loss on conversion       9,818 
Receivables   442      
Pre-Payments   (256)   (9,997)
Due to related parties   112,700    40,454 
Net cash used in operating activities   (147,095)   (313,383)
Cash flows from financing activities          
           
Due to Affiliates        
Additional paid in capital   68,780    353,094 
Proceeds from issuance of common stock   6     
Repayments to related party   (53,821)    
Issuance of short term note payable   68,220      
Net cash from financing activities   83,185    353,094 
Effect of currency translations to cash flow   (8,445)   (29,613)
Net change in cash and cash equivalents   (72,355)   10,098 
Beginning of period   74,241    6,704 
End of period  $1,886   $16,802 

 

Supplemental cash flow information  Quarter ended March 31,
   2020  2019
Interest paid  $   $ 
Noncash investing and financing activities:          
Debt discount on convertible notes   68,220     
Conversion of loan principal into shares  $   $12,000 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

6 

 

GRAPHENE & SOLAR TECHNOLOGIES Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

NOTE 1 – BASIS OF PRESENTATION

 

These consolidated financial statements of Graphene &Solar Technologies Limited (GSTX or the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). In the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations. These financial statements should be read along with Solar Quartz’s audited financial statements as of September 30, 2019.

 

Going Concern – The Company has incurred cumulative net losses throughout 2018 and 2019 financial periods and currently in 2020 periods. Accordingly, it requires capital to fund working capital deficits and for future operating activities to take place. The Company’s ability to raise new funds through the future issuances of debt or common stock is unknown. The obtainment of additional financing, the successful development of a plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

Going Concern – The Company has incurred cumulative net losses since its inception and will require capital for future operating activities to take place. The Company’s ability to raise new funds through the future issuances of debt or common stock is unknown. The obtainment of additional financing, the successful development of a plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

Future issuances of the Company’s equity or debt securities will be required for the Company to finance operations and continue as a going concern. The financial statements do not include any adjustments that may result from the outcome of these uncertainties.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION

 

Principles of Consolidation and Basis of Presentation — The consolidated financial statements include the accounts of Graphene & Solar Technologies Limited and its subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

 

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). A summary of the significant accounting policies applied in the preparation of the accompanying financial statements can be found in the Company’s Annual Report in form 10-K for the year ended September 30, 2019.

 

Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Significant estimates include but are not limited to the estimated useful lives of equipment for purposes of depreciation and the valuation of common shares issued for services, equipment and the liquidation of liabilities.

 

Cash and Cash Equivalents-Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of March 31, 2020 and 2019, the Company had $1,886 and $16,802 in cash, respectively, and no cash equivalents.

 

Derivative Financial Instruments - The Company accounts for freestanding contracts that are settled in a company’s own stock, including common stock warrants, to be designated as an equity instrument or generally as a liability. A contract so designated is carried at fair value on a company’s balance sheet, with any changes in fair value recorded as a gain or loss in a company’s results of operations.

 

The Company records all derivatives on the balance sheet at fair value, adjusted at the end of each reporting period to reflect any material changes in fair value, with any such changes classified as changes in derivatives valuation in the statement of operations. The calculation of the fair value of derivatives utilizes highly subjective and theoretical assumptions that can materially affect fair values from period to period. The recognition of these derivative amounts does not have any impact on cash flows.

 

At the date of the conversion of any convertible debt, the pro rata fair value of the related embedded derivative liability is transferred to additional paid-in capital.

 

The Company determined our derivative liabilities to be a Level 3 fair value measurement and uses the Binomial pricing model to calculate the fair value. The Binomial model requires six basic data inputs: the exercise or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each convertible note is estimated using the Binomial valuation model.

 

Stock-Based Compensation - The Company accounts for employee stock-based compensation using the fair value method. However, the Company did not evaluate employee-based compensation as the Company has no employees. The Company did issue stock to vendors/consultants for services performed. The fair value attributable to stock options is calculated based on the Black-Scholes option pricing model and is amortized to expense over the service period which is equivalent to the time required to vest the stock options.

 

Foreign Currency Translations – The functional currency of the Company’s foreign subsidiary is primarily the respective local currency. Assets and liabilities of the Company’s foreign subsidiary are translated into U.S. Dollars at the year-end exchange rate, and revenues and expenses are translated at average monthly exchange rates. Translation gains and losses are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity. All other foreign currency transaction gains and losses are included in other (income) expense, net.

 

7 

 

Earnings Per Share - Basic earnings per share have been calculated based upon the weighted-average number of common shares outstanding. Diluted earnings per share were not calculated as such potential shares would be anti-dilutive. Potential shares that could be converted into common shares at March 31, 2020 are approximately 636,364.

 

Reclassifications - Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. The reclassifications had no effect on net loss, working capital or equity previously reported.

 

Recently Issued Accounting Pronouncements - Various accounting standards updates have been recently issued, most of which represented technical corrections to the accounting literature or were applicable to specific industries. Recently accounting pronouncements have been issued that are likely to have a material impact to the Company’s consolidated financial statements. These include accounting standards as they apply to leases. The Company will treat its development of mineral rights under standards for operating leases commonly applied in mineral extraction industries.

 

Mineral Rights- Investment in mineral rights consists of the exclusive mining and development rights for the two high purity quartz silica deposits known as Quartz Hill (represented by mining leases ML 30235, ML 30236 and ML 30237) and White Springs (represented by leases ML 30238 and ML 30239) located in North Queensland, Australia. The investment in mineral rights is carried on the books of the Company at the cost of the lease rights. Mineral rights assets are tested for impairment if facts and circumstances indicate that impairment exists.

 

NOTE 3 – CONVERTIBLE NOTES PAYABLE

 

The Company’s indebtedness as of March 31,2020 and September 30, 2019 were as follows:

 

Description  March 31, 2020  September 30, 2019
       
Convertible notes  $138,967   $70,747 
Notes Payable  $90,000   $90,000 

 

$70,747 of the convertible notes bear interest at 15% and are also due on demand. The principal and accrued interest of these convertible notes can be converted at the discretion of the holders into common shares at $3.31/share.

 

$68,220 of the convertible notes bear interest at 10% and the principal and accrued interest of these convertible notes can be converted at the discretion of the holders into common shares at 45% discount to the ADR 20 days prior to notification of conversion.

 

The Notes Payable bear interest at 10% and are due on demand. The majority shareholder agreed to increase authorized shares if needed in order to settle this debt. This note was discounted for the full amount and the amount of amortization during the period.

 

NOTE 4- RELATED PARTY

 

PGRNZ Limited, a management company controlled by the Company’s Chief Executive Officer, and a Company Director, provides management services to the Company for which the Company is charged $75,000(AUD) quarterly, approximately $50,250 (US). During the three months ended March 31, 2020 and 2019, the Company incurred charges to operations of $16,888 (US) and $63,837(US), respectively, with respect to this arrangement.

 

As of March 31,2020 and September 30, 2019, accrued expenses due to related parties was $474,445 and $455,557 respectively.

 

NOTE 5 – STOCKHOLDERS’ EQUITY

 

Common shares of 356,467 were issued resulting in an increase to capital stock of $3 and an increase to Additional Paid-in Capital of $15,781.

 

The Company has a total of 5,349,010 shares that remain approved, reserved and outstanding and not yet issued by the Transfer Agent at March 31, 2020

 

NOTE 6 – SUBSEQUENT EVENTS

 

During the month of June 2020 an additional Common shares of 250,000 were approved at a share price of approximately $0.08. These shares are yet to be issued by the Transfer Agent as at June 30, 2020.

 

On June 1, 2020 one additional Director was approved and appointed by the Board and 8-K and Form 3 filed with the SEC.

 

On July 1, 2020 two additional Directors were approved for appointment to the Board of Directors.

 

8 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF OPERATION

 

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes, and other financial information included in this Form 10-Q.

 

Our Management’s Discussion and Analysis contains not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. Although the forward-looking statements in this Quarterly Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.

 

FORWARD LOOKING STATEMENTS

 

The information contained in this Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including among other things, statements regarding our capital needs, business strategy and expectations. Any statement which does not contain a historical fact may be deemed to be a forward-looking statement. In some cases, you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or other comparable terminology. In evaluating forward looking statements, you should consider various factors outlined in our Form 10-K report for the year ended September 30, 2019, filed with the U.S. Securities Exchange Commission (“SEC”) and, from time to time, in other reports we file with the SEC. These factors may cause our actual results to differ materially from any forward-looking statement. We disclaim any obligation to publicly update these statements or disclose any difference between our actual results and those reflected in these statements.

 

Overview

 

In July 2017 we acquired Solar Quartz Technologies Limited, a New Zealand corporation. We are now seeking new financing in the form of equity, debt or a combination thereof to meet development and general operating obligations. Absent achieving sufficient funds soon, our viability is in doubt. The Company has managed to raise some capital by sale of shares, but as of March 31, 2019, the Company has not been successful in raising sufficient funds; However, work is underway to secure funding, and we believe that funding for the Company is possible in the near future although no assurance can be made as to the amount of funds, if any, or the terms thereof.

 

Current Business and Operations

 

 On July 2017 we acquired Solar Quartz Technologies Limited, a New Zealand Corporation.

 

With the acquisition of Solar Quartz Technologies Limited we now own mining exploration and development rights to significant deposits of High Purity Quartz that we have determined in our evaluation of independent reports and considered judgment to have reserves which are adequate to provide the Company with adequate resources for 25-30 years of production. See Item 1 in the FY 2019 10-K Business for greater details.

 

9 

 

We are currently actively seeking interim working capital in order to complete mining plans and build a pre-processing plant in Townsville, North Queensland, Australia, build upon our management team and market high purity quartz (HPQS) to established markets with whom our management team have had prior relationships. These organizational efforts will be to secure significant new capital for the acquisition of a site and the building of the pre-processing plant. Upon completion, that plant will enable the Company to upgrade its newly mined HPQS to a higher level of purity that has a significant world-wide demand for use in the production of advanced PV solar Panels and all high-end electronics, lighting, telecom, optic and microelectronics. Failure to secure these financings will have a negative impact on the Company’s ability to continue as a going concern.

 

Results of Operations

 

For the fiscal quarters ended March 31, 2020 and 2019 we generated no revenues, and thus no cost of sales or gross profits.

 

For the fiscal quarters ended March 31, 2020 and 2019, we incurred $163,796 and $197,558 respectively in operating expenses.

 

For the fiscal quarter ended March 31, 2020 we recorded other expenses of $13,104 while in March 31, 2019 we incurred expenses of $41,347 both items are represented by accrued interest on debt. Other income of $1,975 was earned in the fiscal quarter, March 31, 2020.

 

For the year quarter March 31, 2020, we reported net loss before taxes of $100,395 while in the fiscal quarter ended March 31, 2019, we reported a net loss before taxes of $230,793. Since there were no tax obligations in either year, net income / loss in each year was the same as that reported before taxes.

 

For the periods ended September 30, 2019 and March 31, 2019, our cash positions were $74,241 and $1,886 respectively.

 

As of March 31, 2020, we had total current liabilities of $1,270,052 while as of September 30, 2019, we had total current liabilities of $1,129,661 an increase of about 12%. Accrued interest payable increased from $110,738 to $113,698 all attributable to accruals on the loans and the convertible notes payable.

 

Liquidity and Capital Resources

 

As of March 31, 2020, we had $18,851 in total current assets and $1,270,052 in total current liabilities. Accordingly, we had a working capital deficit of $1,270,399.

 

Operating activities used $163,796 in cash for the quarter ended March 31, 2020, as compared to $197,588 for the quarter ended March 31, 2019.

 

10 

 

Off-Balance Sheet Arrangements

 

There are no off-balance sheet arrangements.

 

Critical Accounting Policies and Estimates

 

For a discussion of our accounting policies and related items, please see the Notes to the Financial Statements, included in Item 1.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

 

Not applicable.

 

ITEM 4. CONTROLS AND PROCEDURES.

 

Evaluation of Disclosure Controls and Procedures

 

(a) We maintain a system of controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (“1934 Act”), is recorded, processed, summarized and reported within time periods specified in the SEC’s rules and forms and to ensure that information required to be disclosed by us in the reports that we file or submit under the 1934 Act is accumulated and communicated to our management, including our Chief Executive and Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of March 31, 2020, our Interim Chief Financial Officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, our Interim Chief Financial Officer concluded that our disclosure controls and procedures were more effective when compared to FY 2019. Checks and balances have been implemented; a system of accounting for expenditures is in place and control of cash has been improved. Subject to available capital, the Company plans to hire a full time Chief Financial Officer which should have the effect of improving our disclosure controls and procedures.

 

Changes in Internal Control Over Financial Reporting

 

Improvements in our internal control over financial reporting have been implemented during the period covered by this report.

Management has addressed the underlying causes for our weaknesses in internal control since early FY 2019. Our efforts to raise both debt and equity capital soon will allow us to continue to engagements with recently appointed external independent consultants who have been assisting with the processing of data and drafting financial reports on a timely basis in future reporting periods.

 

11 

 

PART II

 

ITEM 1. LEGAL PROCEEDINGS

 

None.

 

ITEM 1A. RISK FACTORS

 

Our business is subject to numerous risks and uncertainties including but not limited to those discussed in “Risk Factors” in our annual report on Form 10-K.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

Please see Note 5 to our Financial Statements.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

None.

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS

 

Exhibits

 

31.1 Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
31.2 Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
32 Certification pursuant to Section 906 of the Sarbanes-Oxley Act.

 

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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.

 

  GRAPHENE & SOLAR TECHNOLOGIES LIMITED
     
Date: July 16, 2020 By: /s/ David AB Halstead
    David AB Halstead
    Director and Interim Chief Financial Officer

 

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