Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. Hydrogen Future Corp (1381054) 10-Q published on Aug 28, 2015 at 5:01 pm
Reporting Period: Jun 29, 2015
On the closing of the purchase of Hydra, the Company paid on behalf of the seller ,American Security Research Company, to the State of Nevada $47,005 to execute the transfer. This expense will ultimate be borne by the seller and the Company has recorded a receivable to reflect this. During the quarter ended June 30, 2015, American Security Research Company repaid $850 of this amount. The remaining balance is $46,155 at June 30, 2015.
The Company’s technology is an alternative to existing fossil fuels. As the price of traditional energy sources become cheaper, there is less of an incentive to switch to the Company’s competitive offerings. The price of West Texas Intermediate Crude has fallen from over $100 at June 30, 2014 to approximately $40 as of the date of this filing. The Company believes that the reduction in the price of crude oil reflects a permanent trend, which has permanently adversely impacted its investment. Based on comparable companies, the Company has now determine that the Goodwill is worth $1,994,236.
Consulting fees totaled $75,000 due to the quarterly accrual for the consulting contract during each period. Issuance of common stock to settle a prior liability was $117,000 for the quarter ended June 30, 2014 due to the issuance of 120,000 shares to settle a liability which had not been previously accrued. General and administrative expenses decreased by $93,336 82,435 was due to reduced expenses at the parent company. The decrease was principally due to legal expenses and professional fees associated with the Hydra Fuel Cell merger in the period ended June 30, 2014, and greater transfer agent fees in that quarter. $10,901 of the decrease was due to reduced operating expenses at the fuel cell operating subsidiary.
Write-down of Goodwill was $1,358,920 due to the permanent impairment of our investment as a result of lower oil prices. See Note 7- Goodwill, above for more detail.
For the nine months ended June 30, 2015, net cash flows used by investing activities was($1,995.) $(2,805) was due to purchases of property, plant and equipment at our Hydra subsidiary, partially received by a receipt of $800 on our non-operating Note Receivable.