TIDMALR
RNS Number : 5461H
Alternative Energy Limited
31 May 2011
For immediate release 31 May 2011
ALTERNATIVE ENERGY LIMITED
Interim Results for period to 28(th) February 2011
CHAIRMAN'S STATEMENT
The period covered by the Company's interim financial statements
to 28(th) February 2011 represents the six months immediately
following the Company's relisting on AIM as an operating
company.
As I reported in my last statement the relisting transformed the
Company; following which the Company has been actively working with
potential distributors around the world to establishing markets for
the Company's products. As a result of this the Company appointed
its first distributors, in the UK and Nigeria, in January 2011,
although these appointments came at the end of the financial period
and therefore the current accounts do not yet reflect the earnings
which the Company expects to generate from these appointments.
The Company's operating expenses during the period were steady,
although augmented by the employee share options granted following
the relisting to incentivise our engineering team, as well as an
increase in professional fees and expenses attributable to the
relisting exercise.
The Company continues to pursue revenues through its worldwide
marketing efforts, having now appointed four distributors as well
as a marketing agent in Singapore to assist the Company in
developing sales in its home market.
The Company is also continuing to expand the range of its market
ready products both in respect of LED lighting and in the
development of its eLive self-powered housing (which now
incorporates the Company's eRoof technology), with a view to
capturing market share in green technologies and reaching
profitability as soon as possible.
I have continued to support the Company with working capital by
way of an expansion of my convertible bond and the Company has also
carried out further placements to augment working capital and
provide additional capital for growth.
The next few months will be important for the Company as it
seeks to build its business and the team are continuing to work
hard to achieve the best value for money spent by the Company.
Christopher Nightingale
31(st) May 2011
ALTERNATIVE ENERGY LIMITED
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
Note 28.2.2011 28.2.2010 31.8.2010
US$ US$ US$
Assets
Non-current assets
Plant and equipment 3 59,009 180,819 114,416
Intangible assets 4 11,235,497 1,021,349 7,207,908
-----------
Total non-current assets 11,294,506 1,202,168 7,322,324
-----------
Current assets
Cash and cash equivalents 5 1,117,064 1,791,674 1,681,620
Trade receivables 6 480 - -
Other receivables 6 224,206 124,533 148,969
----------- ----------- -----------
Total current assets 1,341,750 1,916,207 1,830,589
----------- ----------- -----------
Total assets 12,636,256 3,118,375 9,152,913
=========== =========== ===========
Equity and liabilities
Capital and reserves
Issued capital 7 18,383,792 8,299,218 14,383,792
Treasury shares 7 (56,400) (618,900) (56,400)
Share options reserve 8 619,724 - 264,082
Convertible loan reserve 9 788,824 - 401,052
Accumulated losses (9,365,828) (4,907,783) (7,259,786)
Total equity 10,370,112 2,772,535 7,732,740
----------- ----------- -----------
Non-current liabilities
Convertible loans 12 1,828,225 - 1,195,673
----------- ----------- -----------
Current liabilities
Other payables and accruals 10 395,111 301,503 182,513
Provisions 11 42,808 44,337 41,987
Total current liabilities 437,919 345,840 224,500
----------- ----------- -----------
Total equity and liabilities 12,636,256 3,118,375 9,152,913
=========== =========== ===========
ALTERNATIVE ENERGY LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
1.9.2010 1.9.2009
to to
28.2.2011 28.2.2010
Unaudited Unaudited
Note US$ US$
Revenue 24,555 -
Cost of sales (18,280) -
----------- -----------
Gross profit 6,275 -
Other income 12 220
Administrative expenses (786,181) (251,527)
Other expenses (1,324,256) (808,670)
Finance costs (1,892) -
Loss before income tax 13 (2,106,042) (1,059,977)
Income tax 14 - -
Loss for the financial period,
representing comprehensive loss
for the period (2,106,042) (1,059,977)
=========== ===========
Attributable to:
Equity holders of the Company (2,106,042) (1,059,977)
=========== ===========
Loss per share (US$ cents)
Basic and diluted 16 # #
=========== ===========
# denotes a figure which is less than US$0.01 cents
ALTERNATIVE ENERGY LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Convertible
Issued Treasury option loan Accumulated
capital shares reserve reserve losses Total
US$ US$ US$ US$ US$ US$
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
As at 1 September
2010 14,383,792 (56,400) 264,082 401,052 (7,259,786) 7,732,740
Total
comprehensive
loss for the
financial
period - - - - (2,106,042) (2,106,042)
Shares issued
during the
period 4,000,000 - - - - 4,000,000
Reserve
attributable
to equity
component of
convertible
loan - - - 387,772 - 387,772
Grant of
equity-settled
share options
to employees - - 355,642 - - 355,642
Balance at 28
February 2011 18,383,792 (56,400) 619,724 788,824 (9,365,828) 10,370,112
========== =========== ========= =========== =========== ===========
As at 1 September
2009 7,916,392 (1,200,000) - - (3,847,806) 2,868,586
Total
comprehensive
income for the
period - - - (1,059,977) (1,059,977)
Shares issued
during the
period 467,400 581,100 - - - 1,048,500
Issue expenses (84,574) - - - - (84,574)
Balance at 28
February 2010 8,299,218 (618,900) - - (4,907,783) 2,772,535
========== =========== ========= =========== =========== ===========
ALTERNATIVE ENERGY LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
1.9.2010 1.9.2009
to 28.2.2011 to 28.2.2010
Unaudited Unaudited
US$ US$
Cash flows from operating activities
Loss before income tax (2,106,042) (1,059,977)
Adjustments for:
Amortisation of intangible assets 8,248 7,108
Depreciation of plant and equipment 57,048 65,045
Plant and equipment written off - 1,394
Interest income (12) (220)
Interest expense 1,892 -
Share options expense 355,642 -
Provision for reinstatement cost 1 501
Provision for unutilised leave 820 541
Operating cash outflow before working capital
changes (1,682,403) (985,608)
Changes in working capital:
Trade and other receivables (75,717) (24,571)
Other payables and accruals 212,598 186,256
------------- -------------
Net cash used in operations (1,545,222) (823,923)
Interest paid (1,892) -
Net cash used in operating activities (1,547,414) (823,923)
Cash flows from investing activities
Additions to intangible assets (35,837) (106,575)
Pledged fixed deposits 2,084 963
Interest received 12 220
Purchase of plant and equipment (1,641) (40,706)
------------- -------------
Net cash used in investing activities (35,382) (146,098)
------------- -------------
Cash flows from financing activities
Proceeds from convertible loan 2,488,239 -
Repayment by director (1,467,915) -
Issues expenses - (84,574)
Proceeds from issue of new shares - 467,400
Proceeds from re-issue of treasury shares - 581,100
Net cash generated from financing activities 1,020,324 963,926
------------- -------------
Net decrease in cash and cash equivalents (562,472) (6,095)
Cash and cash equivalents at the beginning
of the period 1,584,158 1,701,707
------------- -------------
Cash and cash equivalents at the end of
the period 1,021,686 1,695,612
============= =============
ALTERNATIVE ENERGY LIMITED
NOTES TO THE UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL
INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2010 TO 28 FEBRUARY
2011
1. General
The Company was incorporated in Singapore on 26 December 2006
under the name of Alternative Energy Pte. Ltd. On 11 July 2007 the
Company was converted into a public limited company and changed its
name to Alternative Energy Limited (the "Company"). The Company is
domiciled in Singapore. The registered office of the Company is at
1 Science Park Road, #02-09, The Capricorn, Singapore Science Park
II, Singapore 117528.
On 12 October 2007, the Company was successfully admitted to
trading on AIM, a market operated by the London Stock Exchange.
The principal activity of the Company is the provision of
technology, hardware and equipment for renewable energy and green
energy solutions. It also develops and makes investments or
acquisitions energy technologies, businesses and companies which
offer an alternative to conventional fossil fuel and nuclear
methods of generating household and industrial energy, as well as
performing management services (including marketing and other
necessary services) for its subsidiaries. The principal activities
of the subsidiaries are that of research and development of
renewable energies for household consumers and holding of
trademarks and intellectual properties.
The interim unaudited financial statements of the Company and
its subsidiary (the "Group") for the period ended 28 February 2011
were authorised for issue by the Board of Directors on 27 May
2011.
2. Basis of preparation
The unaudited interim condensed consolidated financial
information for the 6 months ended 28 February 2011 has been
prepared in accordance with International Accounting Standard 34,
Interim Financial Reporting.
The unaudited interim condensed consolidated financial
information does not include all the information and disclosures
required in the annual financial statements. Accordingly, this
report is to be read in conjunction with the Annual Report for the
year ended 31 August 2010 and any public announcements made by the
Group during the interim reporting period.
The unaudited interim condensed consolidated financial
information for the six months period ended 28 February 2011 do not
constitute statutory accounts and have been drawn up using
accounting policies and presentation expected to be adopted in the
Group's full financial statements for the financial year ending 31
August 2011, which are not expected to be significantly different
to those set out in note 2 to the Group's audited financial
statements for the year ended 31 August 2010.
The financial information for the year ended 31 August 2010 has
been extracted from the statutory accounts for that period. The
auditors' report for the year ended 31 August 2010 was unqualified
with an emphasis of matter paragraph referring to the Group's
abilities to continue as a going concern.
The financial information for the 6 months ended 28 February
2010 has been extracted from the unaudited interim results released
on 28 February 2010.
Going concern
In preparing the unaudited interim condensed consolidated
financial information, the directors have carefully considered the
future liquidity of the Group in the light of the current financial
position of the Group as at 28 February 2011 the recurring losses
from operations in the current and past period, during which the
Company concentrated on the research and development necessary to
prepare the Company's products for sale in the international
markets.
The Company's Chairman, Christopher Nightingale, made an
additional USD1 million available to the Company in February 2011
as part of his convertible loan facility, bringing the facility
available to the Company up to US$3 million. As at 28 February
2011, USD2.6 million of the facility has been drawn down. The
Chairman has indicated his willingness to continue to support the
Group with further convertible loans if necessary. In addition, new
shares for USD900,000 are issued in May 2011.
Currently, the Group has signed four distribution agreements
with distributors in four different countries, with further
agreements being negotiated at this moment. Each agreement provides
sales targets of at least US$5 million. In addition, the Group has
signed a marketing agreement in Singapore with a marketing agent
and is now marketing and selling its products here.
The Group is currently engaged in continuing fundraising efforts
to raise up to US$5 million by equity or convertible bond to fund
expansion.
The directors are confident that the measures they are taking,
together with the support of the Chairman, will yield the Group
sufficient working capital to finance its operations and remain a
going concern for the foreseeable future. Hence, notwithstanding
that the Group has incurred an operating loss of US$2,106,042 for
the period ended 28 February 2011, the directors of the Company are
of the opinion that it is appropriate to prepare the unaudited
interim condensed consolidated financial information of the Group
on a going concern basis.
The unaudited interim condensed consolidated financial
information of the Group does not include the adjustments that
would result if the Group was not able to continue as a going
concern.
3. Plant and equipment
Machinery,
office equipment,
furniture
and
Office renovation Computers fittings Total
US$ US$ US$ US$
Unaudited
28 February 2011
Cost
As at 1 September
2010 117,788 61,322 230,896 410,006
Additions - 1,641 - 1,641
Write off - (3,353) - (3,353)
----------------- --------- ------------------ -------
As at 28 February
2011 117,788 59,610 230,896 408,294
----------------- --------- ------------------ -------
Accumulated
depreciation
As at 1 September
2010 106,263 43,775 145,552 295,590
Depreciation charge
for the 11,399 8,697 36,952 57,048
period
Write off - (3,353) - (3,353)
----------------- --------- ------------------ -------
As at 28 February
2011 117,662 49,119 182,504 349,285
----------------- --------- ------------------ -------
Net book value
As at 28 February
2011 126 10,491 48,392 59,009
================= ========= ================== =======
Unaudited
28 February 2010
Cost
As at 1 September
2009 117,788 58,504 195,215 371,507
Additions - 4,208 36,498 40,706
Write off - (1,391) (1,626) (3,017)
------- ------- ------- -------
As at 28 February
2010 117,788 61,321 230,087 409,196
------- ------- ------- -------
Accumulated depreciation
As at 1 September
2009 67,884 24,638 72,433 164,955
Depreciation charge
for the
period 19,631 9,854 35,560 65,045
Write off - (811) (812) (1,623)
------- ------- ------- -------
As at 28 February
2010 87,515 33,681 107,181 228,377
------- ------- ------- -------
Net book value
As at 28 February
2010 30,273 27,640 122,906 180,819
======= ======= ======= =======
Machinery,
office
equipment,
Office furniture and
renovation Computers fittings Total
US$ US$ US$ US$
Audited
31 August 2010
Cost
As at 1 September
2009 117,788 58,504 195,215 371,507
Additions - 4,208 37,307 41,515
Write off - (1,390) (1,626) (3,016)
As at 31 August
2010 117,788 61,322 230,896 410,006
--------------- --------- --------------- --------
Accumulated
depreciation
As at 1 September
2009 67,884 24,638 72,433 164,955
Depreciation charge
for the 38,379 19,948 73,931 132,258
year
Write off - (811) (812) (1,623)
As at 31 August
2010 106,263 43,775 145,552 295,590
--------------- --------- --------------- --------
Net book value
As at 31 August
2010 11,525 17,547 85,344 114,416
=============== ========= =============== ========
4. Intangible assets
Computer
Goodwill software Patents Trademarks Total
US$ US$ US$ US$ US$
Unaudited
28 February 2011
Cost
As at 1 September
2010 464,726 54,486 6,396,350 326,387 7,241,949
Additions - - 4,020,219 15,618 4,035,837
As at 28 February
2011 464,726 54,486 10,416,569 342,005 11,277,786
-------- --------- ---------- ---------- ----------
Accumulated
amortisation
As at 1 September
2010 - 34,041 - - 34,041
Amortisation for
the period - 8,248 - - 8,248
As at 28 February
2011 - 42,289 - - 42,289
-------- --------- ---------- ---------- ----------
Net book value
As at 28 February
2011 464,726 12,197 10,416,569 342,005 11,235,497
======== ========= ========== ========== ==========
Computer
Goodwill software Patents Trademarks Total
US$ US$ US$ US$ US$
Unaudited
28 February 2010
Cost
As at 1 September
2009 464,726 37,574 218,108 218,891 939,299
Additions - 8,060 66,713 31,802 106,575
As at 28 February
2010 464,726 45,634 284,821 250,693 1,045,874
-------- --------- ------- ---------- ---------
Accumulated
amortisation
As at 1 September
2009 - 17,417 - - 17,417
Amortisation for
the period - 7,108 - - 7,108
As at 28 February
2010 - 24,525 - - 24,525
-------- --------- ------- ---------- ---------
Net book value
As at 28 February
2010 464,726 21,109 284,821 250,693 1,021,349
======== ========= ======= ========== =========
Audited
31 August 2010
Cost
As at 1 September
2009 464,726 37,574 218,108 218,891 939,299
Additions - 16,912 6,178,242 107,496 6,302,650
As at 31 August
2010 464,726 54,486 6,396,350 326,387 7,241,949
------- ------ --------- ------- ---------
Accumulated amortisation
As at 1 September
2009 - 17,417 - - 17,417
Amortisation for
the period - 16,624 - - 16,624
As at 31 August
2010 - 34,041 - - 34,041
------- ------ --------- ------- ---------
Net book value
As at 31 August
2010 464,726 20,445 6,396,350 326,387 7,207,908
======= ====== ========= ======= =========
Goodwill represents the excess of the cost of a business
combination over the interest in the fair value of identifiable
assets, liabilities and contingent liabilities acquired. Cost
comprises the fair values of assets given, liabilities assumed and
equity instruments issued plus any direct cost of acquisition.
Goodwill is stated at cost less any accumulated impairment
losses. Goodwill is allocated to cash generating units and is not
amortised but is tested annually for impairment or more frequently
if events or changes in circumstances indicate that it might be
impaired.
As at 28 February 2011, the management has assessed and
determined that the goodwill is not impaired. Such assessment and
determination require the management to make judgements, estimates
and assumptions. These estimates and associated assumptions are
continually evaluated and are based on historical experience and
other factors including expectations of future events or changes in
circumstances. Actual results may differ from these estimates.
Pursuant to an agreement entered into between the Company and a
related party, the Company is to acquire certain patents and
technology from the said related party. An independent professional
valuer had in April 2010 valued these patents and technology at
US$31 million. Having considered this, the Company and the said
related party have agreed to fix the purchase consideration for the
purchase of these patents and technology at US$20 million. This
purchase consideration of US$20 million shall be fully settled by
the issue of 666,666,666 new ordinary shares of the Company at
US$0.03 per share. The obligation to pay the purchase consideration
is subject to certain terms and conditions.
During the year ended 31 August 2010, upon the successful
registration of certain patents, the Company purchased part of
these patents and technology for a consideration of US$6 million by
issuing 199,999,999 new ordinary shares at US$0.03. The remaining
patents costing US$14 million will be purchased as and when the
remaining patents and technology are successfully registered in the
near future.
During the period ended 28 February 2011, upon the successful
registration of certain patents, theCompany further purchased part
of these patents and technology for a consideration of US$4 million
by issuing 133,333,333 new ordinary shares at US$0.03.
Subsequent to the period end, as disclosed in note 19, upon
successful registration of certain patents, the Company further
purchases part of these patents and technology for a consideration
of US$423,750 by issuing 14,125,000 new ordinary shares at
US$0.03.
For the purpose of the consolidated statement of cashflows, the
group's additions to intangible assets during the year comprise of
the following:
Unaudited Unaudited Audited
28.2.2011 28.2.2010 31.8.2010
US$ US$ US$
Additions to intangible assets 4,035,837 106,575 6,302,650
Non-cash transaction settlement
by issuance of new ordinary
shares (Note 7) (4,000,000) - (6,000,000)
----------- --------- -----------
Purchase of intangible assets
by cash payment 35,837 106,575 302,650
=========== ========= ===========
5. Cash and cash equivalents
Unaudited Unaudited Audited
28.2.2011 28.2.2010 31.8.2010
US$ US$ US$
Cash on hand and bank balances 1,021,686 1,791,674 1,584,158
Fixed deposits 95,378 - 97,462
--------- --------- ---------
Cash and bank balances 1,117,064 1,791,674 1,681,620
Less: fixed deposits pledged
to a bank (95,378) (96,062) (97,462)
---------
Cash and cash equivalents as
per consolidated statements
of cash flow 1,021,686 1,695,612 1,584,158
========= ========= =========
Cash and cash equivalents are denominated in the following
currencies:
Unaudited Unaudited Audited
28.2.2011 28.2.2010 31.8.2010
US$ US$ US$
Singapore dollar 985,191 337,896 284,055
United States dollar 1,620 1,453,778 1,267,285
Hong Kong dollar 130,253 - 130,280
---------
1,117,064 1,791,674 1,681,620
========= ========= =========
Fixed deposits are pledged with the bank, with original maturing
periods of not more than 365 (28.2.2010: 365 and 31.8.2010: 183)
days. Interest rate ranges from 0.45% to 0.55% (28.2.2010: 0.45% to
0.55% and 31.8.2010: 0.55%).
The Group's fixed deposits of US$95,378 (28.2.2010: US$96,062
and 31.8.2010: US$97,462) are pledged to bank for credit card
facility granted to a subsidiary company.
6. Trade and other receivables
Unaudited Unaudited Audited
28.2.2011 28.2.2010 31.8.2010
US$ US$ US$
Trade receivables 480 - -
Other receivables 71,078 29,187 23,915
Deposits 115,556 73,198 95,894
Prepayments 37,572 22,148 29,160
---------
224,686 124,533 148,969
========= ========= =========
Other receivables are denominated in the following
currencies:
Unaudited Unaudited Audited
28.2.2011 28.2.2010 31.8.2010
US$ US$ US$
United States
dollar 111,737 - 122,815
Singapore dollar 89,632 103,288 2,731
British pound 23,317 21,245 23,423
------------------
224,686 124,533 148,969
================== ================== ==================
All other receivables are not past due and are not impaired as
at the end of the financial period.
7. Issued capital and treasury shares
7.1 Issued capital
Unaudited Unaudited Audited Unaudited Unaudited Audited
28.2.2011 28.2.2010 31.8.2010 28.2.2011 28.2.2010 31.8.2010
Number of ordinary shares US$ US$ US$)
Issued and
fully-paid:
Balance at
beginning
of financial
period/years 1,398,672,563 1,183,092,564 1,183,092,564 14,383,792 7,916,392 7,916,392
Issue of new
ordinary
shares 133,333,333 15,580,000 215,579,999 4,000,000 467,400 6,467,400
Less: share
issue
expenses - - - - (84,574) -
Balance at
end of
financial
period/years 1,532,005,896 1,198,672,564 1,398,672,563 18,383,792 8,299,218 14,383,792
============= ============= ============= ========== ========= ==========
In February 2010, the Company issued 15,580,000 new ordinary
shares to shareholders. These ordinary shares were issued at
US$0.03. Cash amounting to US$467,400 was raised from this
exercise.
In June 2010, the Company issued 199,999,999 new ordinary shares
to a related party as consideration for the Company's purchase of
patents and technology. The new ordinary shares were issued at
US$0.03 and no cash was raised from this transaction.
In January 2011, the Company issued 133,333,333 new ordinary
shares to a related party as consideration for the Company's
purchase of patents and technology. The new ordinary shares were
issued at US$0.03 and no cash was raised from this transaction.
The Company has one class of ordinary shares. All issued
ordinary shares are fully paid and carry one vote per ordinary
share and also carry a right to dividends. There is no par value
for these ordinary shares.
All newly issued shares of the Company shall rank pari-passu in
all respects with the then existing issued shares.
7.2 Treasury shares
Unaudited Unaudited Audited Unaudited Unaudited Audited
28.2.2011 28.2.2010 31.8.2010 28.2.2011 28.2.2010 31.8.2010
Number of ordinary shares US$ US$ US$
Issued and
fully-
paid:
Balance at
beginning
of
financial
period 1,922,966 40,042,966 40,042,966 56,400 1,200,000 1,200,000
Re-issue
during
the
financial
period - (19,370,000) (38,120,000) - (581,100) (1,143,600)
Balance at
end of
financial
period 1,922,966 20,672,966 1,922,966 56,400 618,900 56,400
========= ============ ============ ========= ========= ===========
In November 2009, the Company re-issued 19,370,000 of its
treasury shares at US$0.03 per share. The Company received
US$581,100 for these shares.
In August 2010, the Company re-issued 18,750,000 treasury shares
to shareholders. These shares were issued at US$0.04. Cash
amounting to US$750,000 was raised from this exercise. Gain arising
from this transaction US$187,500 is recognized directly in
statement of changes in equity.
The Company has one class of ordinary shares. All re-issued
treasury shares of the Company shall rank pari-passu in all
respects with the then existing issued shares.
8. Share options reserve
Share options reserve represents equity-settled share options
granted to directors of the Company and employees of the Group. The
reserve is made up of cumulative value of services received from
share options holders recorded on grant of equity-settled share
options.
The movement of this account is disclosed in the statement of
changes in equity.
9. Convertible loan reserve
The convertible loan reserve represents the residual amount of
convertible loan after deducting the fair value of the liability
component. This amount is presented net of transaction costs and
deferred liability arising from the convertible loan.
10. Other payables and accruals
Unaudited Unaudited Audited
28.2.2011 28.2.2010 31.8.2010
US$ US$ US$
Other payables 223,288 - 134,017
Accruals 108,638 30,236 48,496
Amount due to a director 63,185 271,267 -
---------
395,111 301,503 182,513
========= ========= =========
Amount due to a director is due to Christopher Nightingale and
is interest-free, unsecured and repayable on demand.
Other payables and accruals are denominated in the following
currencies:
Unaudited Unaudited Audited
28.2.2011 28.2.2010 31.8.2010
US$ US$ US$
British pound - - 47,530
Singapore dollar 161,809 30,236 134,983
United States dollar 233,302 271,267 -
---------
395,111 301,503 182,513
========= ========= =========
11. Provisions
Unaudited Unaudited Audited
28.2.2011 28.2.2010 31.8.2010
US$ US$ US$
Provision for unutilised
leave 20,742 23,016 19,922
Provision for reinstatement
cost 22,066 21,321 22,065
---------
42,808 44,337 41,987
========= ========= =========
Provision for unutilised leave represents employee entitlements
to annual leave as a result of services rendered by employees up to
the statement of financial position date.
Provision for reinstatement cost is relation to the obligation
for dismantlement, removal or restoration of office premises.
Movements in the provisions are as follows:
Provision
for Provision
unutilised for reinstatement
leave cost Total
US$ US$ US$
Unaudited
28.2.2011
Balance at beginning of
the period 19,922 22,065 41,987
(Reversal)/additions during
the period 820 1 821
------------ ------------------- --------
Balance at end of the
period 20,742 22,066 42,808
============ =================== ========
Unaudited
28.2.2010
Balance at beginning of
the period 22,475 20,820 43,295
Provision utilised during
the period 541 501 1,042
Balance at end of the
period 23,016 21,321 44,337
============ =================== ========
Audited
31.8.2010
Balance at beginning of
the year 22,474 20,820 43,294
Provision during the year (2,552) 1,245 (1,307)
------------ ------------------- --------
Balance at end of the
year 19,922 22,065 41,987
============ =================== ========
12. Convertible loan
Unaudited Unaudited Audited
28.2.2011 28.2.2010 31.8.2010
US$ US$ US$
Convertible loan due to
a director 1,828,225 - 1,195,673
========= ========= =========
The convertible loan is denominated in United States dollar.
Amount due to a director represents the residual amount of
convertible loan due to Christopher Nightingale after deducting the
fair value of the equity component and is made up as follows:
Unaudited Unaudited Audited
28.2.2011 28.2.2010 31.8.2010
US$ US$ US$
Net proceeds from issue
of convertible
Loan 4,084,964 - 2,000,000
Amount classified as equity (788,824) - (401,052)
----------- --------- ---------
3,296,140 1,598,948
Less: Account with director (1,467,915) - (403,275)
----------- --------- ---------
Amount due to a director
(net) 1,828,225 - 1,195,673
=========== ========= =========
The salient terms and conditions of the convertible loan
agreement are summarised as follows:
-- The term of the loan commences on the date of the convertible
loan agreement and shall terminate on 1 May 2012 ("Repayment
Date");
-- The loan shall be interest free;
-- The Lender has agreed to provide the Company with a
convertible loan of up to US$3million.
-- The Lender shall have the right at any time during the term
of the loan to convert any part of the loan into ordinary listed
shares of the Company at US$0.03 share;
-- The Company may without penalty repay the whole or part of
the loan before the repayment term; and
-- The Company may also offset any expenses or amount owing from
the Lender to the Company against the loan.
13. Loss before income tax
In addition to the information disclosed elsewhere in the
unaudited financial information, the Group's loss before income tax
is arrived at after charging the following:
1.9.2010 1.9.2009
to to
28.2.2011 28.2.2010
Unaudited Unaudited
US$ US$
Staff costs
-Directors' remuneration other than
fees 200,821 188,852
-Employee benefits expense 206,356 165,363
Amortisation of intangible assets 8,248 7,108
Depreciation of plant and equipment 57,048 65,045
Office rental 152,068 96,267
Equipment rental 1,227 1,421
Foreign currency exchange loss, net 4,010 2,138
Research and development costs expensed
off 164,694 20,837
Professional fees 277,615 173,592
Provision for reinstatement cost - 501
Share options expense 355,642 -
========== ==========
14. Income tax
The Group has no chargeable income for the 6 months period ended
28 February 2011 and 2010. Accordingly, no provision for income tax
has been provided.
The income tax expense has been determined by applying the
Singapore income tax rate of 17% to loss before income tax and
total charge for the financial period can be reconciled to
accounting loss as follows:
1.9.2010 1.9.2009
to to
28.2.2011 28.2.2010
Unaudited Unaudited
US$ US$
Reconciliation of effective tax rate
Loss for the financial period (2,106,042) (1,059,977)
============ ============
Tax calculated at statutory rate of
17% (358,027) (180,196)
Expenses not deductible for tax purposes 83,926 96,928
Deferred tax assets not recognised 274,101 83,268
- -
============ ============
Deferred tax assets have not been recognised because it is not
certain whether future taxable profits will be available against
which the Group can utilise the benefits.
As at the reporting date, the Group had unutilised tax losses
amounting to US$6,581,838 (2010: US$1,686,210), which are available
for set-off against future taxable profits subject to the
provisions of the Singapore Income Tax Act and agreement by the
Singapore tax authority.
15. Basic and diluted loss per share
15.1 Basic loss per share
Basic loss per share is calculated by dividing the Group's loss
attributable to equity holders by the weighted average number of
ordinary shares in issue during the financial period.
The basic loss per share is calculated as follows:
1.9.2010 1.9.2009
to to
28.2.2011 28.2.2010
Unaudited Unaudited
Net loss attributable to equity
holders of the Company US$2,106,042 US$1,059,977
============== ==============
Weighted average number of ordinary
shares 1,422,376,000 1,147,683,852
============== ==============
Basic loss per share # #
============== ==============
# denotes a figure which is less than US$0.01 cent
15.2 Diluted loss per share
For the purpose of calculating diluted loss per share, the
Group's net loss attributable to equity holders and the weighted
average number of ordinary shares in issue are adjusted for the
effects of all dilutive potential ordinary shares. The outstanding
are adjusted for the effects of all dilutive potential ordinary
shares. The Group has two categories of dilutive potential ordinary
shares: convertible loan and share options.
Diluted earnings per share amounts are calculated by dividing
the loss attributable to ordinary equity holders of the Company by
the weighted average number of ordinary shares outstanding during
the financial year plus the weighted average number of ordinary
shares that would be issued on the conversion of all dilutive
potential ordinary shares into ordinary shares.
Convertible loan is assumed to have been converted into ordinary
shares at US$0.03 per share and net of any expenses amount owing
from the lender to the Company against the loan. The net profit is
adjusted to eliminate the interest expense less the tax effect.
For the share options, a calculation is done to determine the
number of shares that could have been acquired at fair value
(determined as the average annual market share price of the
Company's shares) based on the monetary value of the subscription
rights attached to outstanding share options. The number of shares
calculated as above is compared with the number of shares that
would have been issued assuming the exercise of the share options.
The differences are added to the denominator as an issuance of
ordinary shares for no consideration. No adjustment is made to
earnings (numerator).
The diluted loss per share is calculated as follows:
1.9.2010 1.9.2009
to to
28.2.2011 28.2.2010
Unaudited Unaudited
Net loss attributable to equity
holders of the Company US$2,106,042 US$1,059,977
============== ==================
Weighted average number of ordinary
shares 1,422,376,000 1,147,683,852
Adjustments for potentially dilutive
ordinary shares 149,973,000 -
-------------- ------------------
Weighted average number of ordinary
shares used 1,572,349,000 1,147,683,852
Diluted loss per share # #
============== ==================
# denotes a figure which is less than US$0.01 cent
16. Share-based payments
The Employee Share Option Scheme (ESOS) enables directors and
employees of the Company and its subsidiaries to subscribe for
ordinary shares in the capital of the Company, exercisable at
varying periods from the date of grant depending whether the
exercise price is set at market price in respect of that offer.
Since the date of inception, no shares were granted or awarded
under the Share Performance Plan (SPP).
The EOS Committee has on 5 May 2010 resolved to grant Incentive
Options to the employees of the Group under the existing
Alternative Energy Limited (AEL) ESOS scheme exercisable at US$0.03
per ordinary share.
Information in respect of the share options granted under the
Company's ESOS was as follows:
28.2.2011
Number
of share Exercise
options price
('000) US$
Balance at 1 September 2010 81,000 0.03
Expired/cancelled (7,000) -
Outstanding at end of financial year 74,000 0.03
==========
During the financial period, 7,000,000 share options were
cancelled since 3 employees have left the Company and thus their
rights to the share options have been forfeited. The estimated fair
values of the share options granted are US$355,642 (2010:
US$264,082).
The fair value of share options as at the date of grant is
estimated by an external valuer using the Black-Scholes-Merton
model, taking into account the terms and conditions upon which the
options were granted. The inputs to the model used are shown
below.
Risk-free Expected Share price
Date of Expected interest life of Exercise at date of
grant volatility rate options price grant
(%) (%) (years) (US$) (US$)
5 May 2010 21.5 2.72-3.72 5-10 0.03 0.04
17. Related parties transactions
For the purposes of these unaudited condensed consolidated
financial information, parties are considered to be related to the
Group if the Group has the ability, directly or indirectly, to
control the party or exercise significant influence over the party
in making financial and operating decisions, or vice versa, or
where the Group and the party are subject to common control or
common significant influence. Related parties may be individuals or
other entities.
In addition to the information disclosed elsewhere in the
unaudited condensed consolidated financial information, related
party transactions between the Group and the Company and its
related parties during the financial year were as follows:
Unaudited Unaudited
28.2.2011 28.2.2010
US$ US$
Advances to subsidiary 572,500 586,000
Payment made on behalf of subsidiaries 77,503 43,929
Payment made on behalf by subsidiary 48,664 24,203
Management fee charged to subsidiaries 180,000 180,000
Purchased of patents and technology from
a related party
which is also a controlling party 4,000,000 -
Convertible loan from a director 888,744 -
========= ============
Compensation of directors and key management personnel
The remuneration of directors during the financial period was as
follows:
Unaudited Unaudited
28.2.2011 28.2.2010
US$ US$
Remuneration 195,380 183,106
Post-employment benefits - CPF contribution 4,779 4,114
Short-term benefits 662 1,632
Consultancy fee paid 19,175 -
Consultancy fee paid to companies
in which certain directors
have interest 20,000 -
Share options expense 198,356 -
438,352 188,852
========== ==========
The remuneration of Directors is determined by the Remuneration
Committee having regard to the performance of individuals and
market trends. The remuneration disclosed above includes only the
Directors as there is no personnel other than Directors who are
considered to be a member of key management of the Group.
18. Segment reporting
No segment reporting is presented as the Group is principally
engaged in a single business segment of dealing with household and
industrial clean energy and a single geographical segment located
in Singapore.
19. Events subsequent to the reporting date
On 20 April 2011, the Company has issued an additional
14,125,000 new ordinary shares at US$0.03 for each ordinary share
to a related party and its nominees as partial consideration for
the Company's purchase of the patents and technology relating to
eRoof. The remaining patents costing US$9,576,250 will be purchased
as and when the remaining patents and technology are successfully
registered in the future.
On 28 April 2011, the Company has issued 22,500,000 new ordinary
shares at US$0.04 for each ordinary share thereby raising
US$900,000 for the Company's additional working capital
purposes.
A copy of these interims is available on the Company's website
www.alternativeenergy.com.sg.
For further information, please contact:
Alternative Energy Limited
Christopher Nightingale, Chairman
Tel: 0065 900 82702
Richard Lascelles, Director
Tel: 020 7408 1067
Beaumont Cornish Limited
Roland Cornish and James Biddle
Tel: 020 7628 3396
This information is provided by RNS
The company news service from the London Stock Exchange
END
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