3Power Energy Group Inc.

On October 20, 2017 Shala Energy Plc formed a 80% owned subsidiary, 3Power Shala Sh.Pk, as an Albanian Special Purpose Vehicle (“SPV”) as required by Albanian law, to bid and to successfully acquire an 83.5MW Shala River Concession.

The accompanying unaudited condensed consolidated financial statements are presented in U.S. dollars ("USD"). The Company's functional currencies for UK subsidiary, 3Power Project Services Limited/3Power Energy Limited is in British pounds ("GBP") and Albania subsidiary Shala Energy Sh p.k. Shala Energy PLC and 3Power Shala LLC is in Albania Lek (“LEK”). The consolidated financial statements are translated into USD in accordance with Codification ASC 830, Foreign Currency Matters.

The Company has a 50% interest in American Seawind Energy LLC, a company registered in the State of Texas, United States of America, 75% interest in Shala Energy sh.pk, 75% interest in Shala Energy PLC and Shala Energy PLC has 80% interest in 3Power Shala LLC, a Company registered in the Republic of Albania. American Seawind Energy LLC was inactive as of December 31, 2017.

The Company has evaluated subsequent events through, the date of unaudited condensed consolidated financial statements are available to be issued. There are no subsequent events.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.