TIDMALR
RNS Number : 9387N
Alternative Energy Limited
04 October 2012
For release at 2.00pm 4 October 2012
ALTERNATIVE ENERGY LIMITED
Interim Results for period to 29 February 2012
The Company is pleased to present its unaudited interim accounts
for the six months ended 29 February 2012. Extracts are set out
below.
CHAIRMAN'S STATEMENT
The latest interim figures for the Company for the period to
29(th) February 2012 are being released at the same time as a
further announcement which it is expected will mark a new impetus
for the Group.
As the February figures show, the development of the Group and
its products from the research and development to the commercial
phase was not easy, particularly against the background of a
changing market in the renewable energy sector.
The Company has for some time been seeking significant partners
and markets for its products and services, and such arrangements
take time to put in place. It was against this background that
trading of the shares of the Company was suspended on 30 May 2012
pending release of the Company's interim statement for the six
months ended 29 February 2012. During that period of suspension,
the Company has been concluding its arrangements with its various
new partners and settling the Company's capital requirements for
those arrangements and is now in a position to announce those
arrangements along with the interims and ask for the trading in the
Company's shares to be resumed. Accordingly, following the release
of the announcement containing the Interims, the suspension of the
Company's shares from trading will be lifted, and the Company's
shares are expected to resume trading from 2.00pm on 4 October
2012.
I am therefore very satisfied to be able to announce not only
the company's arrangements in respect of the significant
Indonesian1000 Island Project, but also the potentially significant
relationship with one of China's leading photovoltaic cell
manufacturers which has already resulted in the Company securing
and performing a Euro 9.5 million contract in Germany, and which
should enable the Company to source one of the principal components
of its next generation solar products at competitive prices.
With solar panels and cells now becoming affordable commodities,
the Company's development of its building integrated solar
technologies and solar powered eLive housing is more relevant and
competitive, particularly in those developing countries which are
our target markets. Penetration of these markets will also make it
easier for the Company to sell its other products such as
lighting.
The Company will now be focussing hard on the execution of those
transactions announced which could see the Company create a much
stronger and more visible presence in the Renewable Energy
sector.
Christopher Nightingale
Chairman
REPORT ON REVIEW OF THE UNAUDITED INTERIM CONDENSED CONSOLIDATED
FINANCIAL INFORMATION OF ALTERNATIVE ENERGY LIMITED AND ITS
SUBSIDIARIES FOR THE SIX MONTHS PERIOD ENDED 29 FEBRUARY 2012
Introduction
We have been engaged to review the accompanying unaudited
interim condensed consolidated financial information of Alternative
Energy Limited (the "Company") and its subsidiaries (the "Group"),
which comprises the statement of financial position, the condensed
consolidated statement of comprehensive income, the condensed
consolidated statement of changes in equity and the condensed
consolidated statement of cash flows and the related notes for the
six months ended 29 February 2012. Our responsibility is to express
a conclusion on the unaudited interim condensed consolidated
financial information based on our review.
This report is made solely to the Board of Directors and we do
not accept or assume responsibility to any party other than the
Board of Directors, for our works, for this report, or for the
conclusion we have formed.
Directors' Responsibilities
The interim financial report, including the financial
information contained therein, is the responsibility of and has
been approved by the directors. The directors are responsible for
preparing the half-yearly financial report in accordance with IAS
34 "Interim Financial Reporting", and the rules of the London Stock
Exchange for companies trading securities on the Alternative
Investment Market ("AIM") which require that the interim financial
report be presented and prepared in a form consistent with that
which will be adopted in the Company's annual accounts having
regard to the accounting standards applicable to such annual
accounts.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial information in the interim financial
report based on our review.
Our report has been prepared in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the
rules of the London Stock Exchange for companies trading securities
on AIM and for no other purpose. No person is entitled to rely on
this report unless such a person is a person entitled to rely upon
this report by virtue of and for the purpose of our terms of
engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we
hereby expressly disclaim any and all such liability.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements 2410, "Review of Interim Financial
Information Performed by the Independent Auditor of the Entity." A
review of unaudited interim condensed consolidated financial
information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with
International Standards on Auditing and consequently does not
enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the accompanying unaudited interim
condensed consolidated financial information are not presented
fairly, in all material respects, in accordance with IAS 34.
Emphasis of Matter
We draw your attention to Note 2 which indicates the Group has
been incurring losses for the current and past periods. The Group
has taken measures as described in Note 2 to secure the necessary
funding to meet its daily operation needs. If these measures
described in Note 2 fail to materialise, this could indicate an
existence of a material uncertainty which may cast significant
doubt about the Group's ability to continue as a going concern. Our
conclusion is not qualified in respect of this matter.
BDO LLP
Public Accountants and
Certified Public Accountants
Singapore
2 October 2012
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
Note 29.2.2012 28.2.2011 31.8.2011
US$ US$ US$
Assets
Non-current assets
Plant and equipment 3 14,851 59,009 25,295
Investment in joint venture 4 44,790 - 118,690
Intangible assets 5 15,010,807 11,235,497 14,997,818
15,070,448 11,294,506 15,141,803
------------- ------------ -------------
Current assets
Cash and bank balances 6 542,690 1,117,064 924,864
Trade and other receivables 7 196,720 224,686 193,222
739,410 1,341,750 1,118,086
------------- ------------ -------------
Total assets 15,809,858 12,636,256 16,259,889
============= ============ =============
Equity and liabilities
Capital and reserves
Issued capital 8 21,768,397 14,383,792 19,400,355
Capital reserve 8 1,137,062 4,000,000 3,505,104
Treasury shares 9 (56,400) (56,400) (56,400)
Share options reserve 10 1,348,219 619,724 981,260
Convertible loans reserve 11 201,162 788,824 201,162
Accumulated losses (12,722,803) (9,365,828) (11,260,437)
Foreign currency translation
reserve 15 - 15
11,675,652 10,370,112 12,771,059
------------- ------------ -------------
Current liabilities
Other payables and accruals 12 766,382 395,111 694,527
Convertible loans 13 3,295,884 1,828,225 2,722,363
Provisions 14 71,940 42,808 71,940
4,134,206 2,266,144 3,488,830
------------- ------------ -------------
Total equity and liabilities 15,809,858 12,636,256 16,259,889
============= ============ =============
ALTERNATIVE ENERGY LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
1.9.2011 1.9.2010
to to
29.2.2012 28.2.2011
Unaudited Unaudited
Note US$ US$
Revenue 94,509 24,555
Cost of sales (52,857) (18,280)
Gross profit 41,652 6,275
Other income 7,715 12
Administrative expenses (785,368) (786,181)
Other expenses (651,897) (1,324,256)
Finance cost (568) (1,892)
Share of loss from equity-accounted
joint venture 4 (73,900) -
Loss before income tax 15 (1,462,366) (2,106,042)
Income tax 16 - -
Loss for the financial period,
representing total comprehensive
loss for the period (1,462,366) (2,106,042)
============ ============
Attributable to:
Equity holders of the Company (1,462,366) (2,106,042)
============ ============
Loss per share (US$ cents)
Basic and diluted 17 # #
============ ============
# denotes a figure which is less than US$0.01 cent.
ALTERNATIVE ENERGY LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Foreign
Share Convertible currency
Issued Capital Treasury options loans Accumulated translation
capital reserve shares reserve reserve losses reserve Total
US$ US$ US$ US$ US$ US$ US$ US$
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Balance at 1
September
2011 19,400,355 3,505,104 (56,400) 981,260 201,162 (11,260,437) 15 12,771,059
Total
comprehensive
loss
for the period - - - - - (1,462,366) - (1,462,366)
Shares issued
during the
period (Note
8) 2,368,042 (2,368,042) - - - - - -
Grant of
equity-settled
share options
to employees - - - 366,959 - - - 366,959
Balance at 29
February
2012 21,768,397 1,137,062 (56,400) 1,348,219 201,162 (12,722,803) 15 11,675,652
=========== ============ ========== ========== ============ ============= ============ ============
ALTERNATIVE ENERGY LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(Continued)
Share Convertible
Issued Capital Treasury options loans Accumulated
capital reserve shares reserve reserve losses Total
US$ US$ US$ US$ US$ US$ US$
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Balance at 1 September
2010 14,383,792 - (56,400) 264,082 401,052 (7,259,786) 7,732,740
Total comprehensive loss
for
the period - - - - - (2,106,042) (2,106,042)
Share issued 1,725,000 - - - - - 1,725,000
Shares allotted but not
issued - 2,275,000 - - - - 2,275,000
Grant of equity-settled
share
options to employees - - - 355,642 - - 355,642
Reserve attributable to
equity
components of convertible
loans - - - - 387,772 - 387,772
Balance at 28 February
2011 16,108,792 2,275,000 (56,400) 619,724 788,824 (9,365,828) 10,370,112
=========== ========== ========== ========== ============ ============ ============
ALTERNATIVE ENERGY LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
1.9.2010
1.9.2011 to to
29.2.2012 28.2.2011
Unaudited Unaudited
US$ US$
Operating activities
Loss before income tax (1,462,366) (2,106,042)
Adjustments for:
Depreciation of plant and equipment 10,444 57,048
Gain on sale of plant and equipment (77) -
Amortisation of intangible assets 3,219 8,248
Provision for reinstatement cost - 1
Provision for unutilised leave - 820
Share options expense 366,959 355,642
Interest income - (12)
Interest expense 568 1,892
Share of loss from equity-accounted
joint venture 73,900 -
------------ ------------
Operating cash flows before movements
in working capital (1,007,353) (1,682,403)
Increase in trade and other receivables (3,498) (75,717)
Increase in other payables and accruals 71,855 212,598
------------ ------------
Net cash used in operations (938,996) (1,545,522)
Interest paid (568) (1,892)
------------ ------------
Net cash used in operating activities (939,564) (1,547,414)
------------ ------------
Investing activities
Interest received - 12
Purchase of plant and equipment - (1,641)
Proceeds from sale of plant and equipment 77 -
Decrease in pledged fixed deposits 3,433 2,084
Additions of intangible assets (16,208) (35,837)
------------ ------------
Net cash used in investing activities (12,698) (35,382)
------------ ------------
Financing activities
Proceeds from convertible loans 573,521 2,488,239
Repayment of convertible loans - (1,467,915)
Net cash from financing activities 573,521 1,020,324
------------ ------------
Net decrease in cash and cash equivalents (378,741) (562,472)
Cash and cash equivalents at beginning
of period 825,602 1,584,158
------------ ------------
Cash and cash equivalents at end
of period (Note 6) 446,861 1,021,686
============ ============
ALTERNATIVE ENERGY LIMITED
NOTES TO THE UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL
INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2011 TO 29 FEBRUARY
2012
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) to 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 Group's operation is
not subject to any seasonality or cyclicality.
The interim unaudited financial statements of the Company and
its subsidiary (the "Group") for the period ended 29 February 2012
were authorised for issue by the Board of Directors on 2 October
2012.
2. Basis of preparation
The unaudited interim condensed consolidated financial
information for the 6 months ended 29 February 2012 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 2011 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 29 February 2012 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 2012, 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 2011.
The financial information for the year ended 31 August 2011 has
been extracted from the statutory accounts for that period. The
auditors' report for the year ended 31 August 2011 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
2011 has been extracted from the unaudited interim results released
on 27 May 2011.
2. Basis of preparation (Continued)
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 and as at 29 February 2012 the recurring
losses from operations in the current and past financial years.
The Group has now entered into a number of arrangements which
are intended to produce revenues and raise capital. The Group has
signed a revised conditional convertible loan arrangement with its
chairman which should make available further funding for working
capital purposes, it has also entered into a conditional placement
arrangement with LDK Solar and is planning to raise a further
US$4.8 million through a preferred offering to shareholders. Whilst
each of these measures is conditional, the directors have indicated
that they are confident that the relevant conditions will be
fulfilled.
In respect of the business and revenues of the Group, the Group
has now signed heads of terms appointing them as principal
Engineering Procurement and Construction contractor for a major
Indonesian project and has commenced sales of the solar panels with
a large contract in Germany. The Group has also commenced sales of
its lighting products in Singapore, Indonesia, UK and other
jurisdictions. Many of these sales are test orders which have led
to other quotations for larger projects.
The directors are confident that the measures they are taking,
together with the continuing financial 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$1,462,366 for the period ended 29 February 2012 (for the
period ended 28 February 2011: US$2,106,042), the directors of the
Company are of the opinion that it is appropriate to prepare the
unaudited interim condensed consolidated financial statements of
the Group on a going concern basis.
If the Group is unable to continue in operational existence for
the foreseeable future, the Group may be unable to discharge its
liabilities in the normal course of business and adjustments may
have to be made to reflect the situation that assets may need to be
realised other than in the normal course of business and at amounts
which could differ significantly from the amounts at which they are
currently recorded in the statements of financial position of the
Group and the Company. No such adjustments have been made to these
unaudited interim condensed consolidated financial statements of
the Group.
ALTERNATIVE ENERGY LIMITED
NOTES TO THE UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL
INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2011 TO 29 FEBRUARY
2012 (Continued)
3. Plant and equipment
Machinery,
office
equipment,
furniture
and
Office renovation Computers fittings Total
US$ US$ US$ US$
Unaudited
29 February 2012
Cost
As at 1 September
2011 117,788 62,026 233,143 412,957
Disposal - (1,496) - (1,496)
----------------- --------- ----------- -------
As at 29 February
2012 117,788 60,530 233,143 411,461
----------------- --------- ----------- -------
Accumulated depreciation
As at 1 September
2011 117,788 54,698 215,176 387,662
Depreciation charge
for the
period - 3,271 7,173 10,444
Disposal - (1,496) - (1,496)
----------------- --------- ----------- -------
As at 29 February
2012 - 56,473 222,349 396,610
----------------- --------- ----------- -------
Net carrying amount
As at 29 February
2012 - 4,057 10,794 14,851
================= ========= =========== =======
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 carrying amount
As at 28 February
2011 126 10,491 48,392 59,009
================= ========= =========== =======
ALTERNATIVE ENERGY LIMITED
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2011 TO 29 FEBRUARY
2012 (Continued)
3. Plant and equipment (Continued)
Machinery,
office
equipment,
Office furniture
renovation Computers and fittings Total
Audited US$ US$ US$ US$
30 August 2011
Cost
As at 1 September 2010 117,788 61,322 230,896 410,006
Additions - 4,057 2,247 6,304
Written off - (3,353) - (3,353)
----------- --------- ------------- -------
As at 31 August 2011 117,788 62,026 233,143 412,957
----------- --------- ------------- -------
Accumulated depreciation
As at 1 September 2010 106,263 43,775 145,552 295,590
Depreciation charge
for the financial year 11,525 14,276 69,624 95,425
Written off - (3,353) - (3,353)
----------- --------- ------------- -------
As at 31 August 2011 117,788 54,698 215,176 387,662
----------- --------- ------------- -------
Net carrying amount
As at 31 August 2011 - 7,328 17,967 25,295
=========== ========= ============= =======
4. Investment in joint venture
Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2011
US$ US$ US$
Balance at beginning of
financial periods/year 118,690 - -
Acquisition of joint venture - - 120,696
Share of loss (73,900) - (2,021)
Currency translation differences - - 15
Balance at end of financial
periods/year 44,790 - 118,690
========= ========= =========
The details of the joint venture are as follows:
Country
of
incorporation/ Effective equity
Joint venture Principal activities operation Interest
Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2010
Held by Alternative Energy
Holdings Limited % % %
Manufacture
light fittings,
street lights The People's
The Green and other lighting Republic
Light Company equipment of China 50 - 50
ALTERNATIVE ENERGY LIMITED
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE FINANCIAL YEAR ENDED 29 FEBRUARY 2011 (Continued)
4. Investment in joint venture (Continued)
On 21 January 2011, Alternative Energy Holdings Limited, a
wholly-owned subsidiary of the Company, incorporated a joint
venture company in the People's Republic of China with Jiashan
Joray Electronic Technology Co. Ltd., a company incorporated in the
People's Republic of China. The joint venture is a limited
liability company.
The unaudited management financial information of the joint
venture are used for the equity accounting purposes in preparation
of the unaudited interim condensed consolidated financial
information of the Group.
The Group's interest (based on the paid-up capital ratio) in the
joint venture are as follows:
Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2010
US$ US$ US$
Assets and liabilities:
Total assets 89,127 - 118,690
Total liabilities (92,552) - -
---------- ---------- ----------
Net assets (3,425) - 118,690
========== ========== ==========
Results
Revenue - -
Loss for the financial
periods/year (73,900) - (2,021)
========== ========== ==========
5. Intangible assets
Computer
Goodwill software Patents Trademarks Total
US$ US$ US$ US$ US$
Unaudited
29 February 2012
Cost
As at 1 September
2011 464,726 54,486 14,131,128 394,495 15,044,835
Additions - - 13,633 2,575 16,208
As at 29 February
2012 464,726 54,486 14,144,761 397,070 15,061,043
-------- --------- ---------- ---------- ----------
Accumulated amortisation
As at 1 September
2011 - 47,017 - - 47,017
Amortisation for
the period - 3,219 - - 3,219
As at 29 February
2012 - 50,236 - - 50,236
-------- --------- ---------- ---------- ----------
Net carrying amount
As at 29 February
2012 464,726 4,250 14,144,761 397,070 15,010,807
======== ========= ========== ========== ==========
5. Intangible assets (Continued)
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 carrying amount
As at 28 February
2011 464,726 12,197 10,416,569 342,005 11,235,497
======== ========= ========== ========== ==========
Audited
30 August 2011
Cost
As at 1 September
2010 464,726 54,486 6,396,350 326,387 7,241,949
Additions - - 7,734,778 68,108 7,802,886
As at 31 August
2011 464,726 54,486 14,131,128 394,495 15,044,835
------- ------ ---------- ------- ----------
Accumulated amortisation
As at 1 September
2010 - 34,041 - - 34,041
Amortisation for
the financial year - 12,976 - - 12,976
------- ------ ---------- ------- ----------
As at 31 August
2011 - 47,017 - - 47,017
------- ------ ---------- ------- ----------
Net carrying amount
AAs at 31 August
2011 464,726 7,469 14,131,128 394,495 14,997,818
======= ====== ========== ======= ==========
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 29 February 2012, 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.
5. Intangible assets (Continued)
Pursuant to an agreement entered into between the Company and a
related party in 2010, the Company is to acquire certain patents
and technology from the said related party. An independent
professional valuer had valued these patents and technology at
US$33 million. Having considered this, on the date of agreement,
the Company and the said related party have agreed on the purchase
consideration for the purchase of these patents and technology at
US$20 million and amount 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.
In January 2011, upon the successful registration of patents,
the Company purchased patents and technology for a contractual
purchase consideration of US$4 million by allotting 133,333,333 new
ordinary shares for the fair value of the purchase consideration of
US$7,666,667 as disclosed in Note 8. As of 29 February 2012, after
the successful registration of patents, 313,558,332 new ordinary
shares have already been issued as part of this purchase.
For the purpose of the consolidated statement of cashflows, the
group's additions to intangible assets during the periods/year
comprise the following:
Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2011
US$ US$ US$
Additions to intangible assets 16,208 4,035,837 7,802,886
Non-cash transaction settlement
by issuance of new ordinary
shares (Note 8) - (4,000,000) * (7,667,667)
--------- ----------- -------------
Purchase of intangible assets
by cash payment 16,208 35,837 136,219
========= =========== =============
* This represents fair value based on the Company's share price
as at 27 January 2011.
6. Cash and cash equivalents
Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2011
US$ US$ US$
Cash on hand and bank balances 446,861 1,021,686 825,602
Fixed deposits 95,829 95,378 99,262
--------- --------- ---------
Cash and bank balances 542,690 1,117,064 924,864
Less: fixed deposits pledged
to a bank (95,829) (95,378) (99,262)
---------
Cash and cash equivalents as
per consolidated statements
of cash flow 446,861 1,021,686 825,602
========= ========= =========
Fixed deposits are pledged with the bank, with original maturing
periods of not more than 365 (28.2.2011: 365 and 31.8.2011: 365)
days. Interest rate ranges from 0.35% to 0.45% (28.2.2011: 0.45% to
0.55% and 31.8.2011: 0.35% to 0.45%).
The Group's fixed deposits of US$95,829 (28.2.2011: US$95,378
and 31.8.2011: US$99,262) are pledged to bank for credit card
facility granted to a subsidiary company.
7. Trade and other receivables
Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2011
US$ US$ US$
Trade receivables 14,586 480 19,072
Other receivables 58,187 71,078 51,996
Deposits 117,984 115,556 117,002
Prepayments 5,963 37,572 5,152
---------
196,720 224,686 193,222
========= ========= =========
All other receivables are not past due and are not impaired as
at the end of the financial periods/year.
8. Issued capital
Unaudited Unaudited Audited Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2011 29.2.2012 28.2.2011 31.8.2011
Number of ordinary shares US$ US$ US$
Issued and
fully-paid:
Balance at
beginning
of financial
periods/years 1,493,547,563 1,398,672,563 1,398,672,563 19,400,355 14,383,792 14,383,792
Issue of
new ordinary
shares 41,183,333 30,000,000 94,875,000 2,368,042 1,725,000 5,016,563
Balance at
end of financial
periods/years 1,534,730,896 1,428,672,563 1,493,547,563 21,768,397 16,108,792 19,400,355
============= ============= ============= ========== ========== ==========
In January 2011, the Company purchased patents from a related
party for a contractual purchase consideration of US$4 million
(which represents a fair value of US$7,666,667 based on the
Company's share price as at 27 January 2011) by allotting
133,333,333 ordinary shares of the Company to the related party and
will be issued as follows:
(a) US$4,161,563 of the 1(st) tranche has been settled by way of
issuing 72,375,000 new ordinary shares. 30 million share
representing US$1,725,000 capital reserve has been issued in
January 2011 and the remaining 42,375,000 ordinary share
representing US$2,436,543 has been issued in various date from
April to July 2011.
(b) US$3,505,104 of the 2(nd) tranche were to be settled by way
of issuing 60,958,333 new ordinary shares.
On various dates during the period ended 29 February 2012,
41,183,333 new ordinary shares representing US$2,368,042 of capital
reserve have been issued from 2(nd) tranche above.
In May 2011, the Company issued 22,500,000 new ordinary shares
to shareholders. These ordinary shares were issued at US$0.04. Cash
amounting to US$900,000 was raised from this exercise. The costs
directly attributable to this issuance of new ordinary shares
amounted to US$45,000 has been deducted from the proceeds
received.
ALTERNATIVE ENERGY LIMITED
NOTES TO THE UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL
INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2011 TO 29 FEBRUARY
2012 (Continued)
9. Treasury shares
Unaudited Unaudited Audited Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2011 29.2.2012 28.2.2011 31.8.2011
Number of ordinary shares US$ US$ US$
Issued and
fully-
paid:
Balance at
beginning
and end of
financial
periods/year 1,922,966 1,922,966 1,922,966 56,400 56,400 56,400
========= ========= ========= ========= ========= =========
10. 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.
11. Convertible loans reserve
The convertible loans reserve represents the residual amount of
convertible loans 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.
12. Other payables and accruals
Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2011
US$ US$ US$
Other payables 362,062 223,288 506,979
Accruals 217,924 108,638 124,697
Amount due to a director 186,396 63,185 62,851
---------
766,382 395,111 694,527
========= ========= =========
Amount due to a director is due to Christopher Nightingale and
is interest-free, unsecured and repayable on demand.
13. Convertible loans
Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2011
US$ US$ US$
Convertible loans due to
a director 3,295,884 1,828,225 2,722,363
========= ========= =========
ALTERNATIVE ENERGY LIMITED
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2011 TO 29 FEBRUARY
2012 (Continued)
13. Convertible loans (Continued)
The convertible loans are denominated in United States dollar.
Convertible loans due to a director represents the residual amount
of convertible loans due to Christopher Nightingale after deducting
the fair value of the equity component and is made up as
follows:
Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2011
US$ US$ US$
Net proceeds from issue
of convertible
loans 5,791,666 4,084,964 5,087,053
Amount classified as equity (201,162) (788,824) (201,162)
----------- ----------- -----------
5,590,504 3,296,140 4,885,891
Less: Account with director (2,294,620) (1,467,915) (2,163,528)
----------- ----------- -----------
Amount due to a director
(net) 3,295,884 1,828,225 2,722,363
=========== =========== ===========
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 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$0.03 share;
-- The Company may without penalty repay the whole or part of
the loan before the repayment term;
-- The Company may also offset any expenses or amount owing from
the Lender to the Company against the loan; and
-- The Lender is currently rolling over the loan on a monthly
basis pending agreement of revised terms for a longer term
facility.
14. Provisions
Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2011
US$ US$ US$
Provision for unutilised
leave 50,745 20,742 50,745
Provision for reinstatement
cost 21,195 22,066 21,195
---------
71,940 42,808 71,940
========= ========= =========
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.
ALTERNATIVE ENERGY LIMITED
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2011 TO 29 FEBRUARY
2012 (Continued)
14. Provisions (Continued)
Movements in the provisions are as follows:
Unaudited Unaudited Audited
29.2.2012 28.2.2011 31.8.2011
US$ US$ US$
Balance at beginning of financial
periods/year 71,940 41,987 41,987
Additions during the financial
periods/year - 821 29,953
--------- --------- ---------
Balance at end of financial
periods/year 71,940 42,808 71,940
========= ========= =========
15. 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:
1.9.2011 1.9.2010
to to
29.2.2012 28.2.2011
Unaudited Unaudited
US$ US$
Staff costs
* Directors' remuneration other than fees 229,627 200,821
* Employee benefits expense 172,809 206,356
Amortisation of intangible assets 3,219 8,248
Depreciation of plant and equipment 10,444 57,048
Office rental 129,402 152,068
Equipment rental 1,185 1,227
Foreign currency exchange loss, net 5,635 4,010
Research and development costs expensed
off - 164,694
Professional fees 217,817 277,615
Share options expense 366,959 355,642
========== ==========
16. Income tax
The Group has no chargeable income for the 6 months period ended
29 February 2012 and 28 February 2011. Accordingly, no provision
for income tax has been provided.
16. Income tax (Continued)
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:
1.9.2011 1.9.2010
to to
29.2.2012 28.2.2011
Unaudited Unaudited
US$ US$
Reconciliation of effective tax rate
Loss for the financial period (1,462,366) (2,106,042)
============ ============
Tax calculated at statutory rate of
17% (248,602) (358,027)
Expenses not deductible for tax purposes 44,328 83,926
Income not subject to tax 12,745 -
Deferred tax assets not recognised 191,529 274,101
- -
============ ============
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$10,329,928 (28.2.2011: US$6,581,838), 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.
17. Basic and diluted 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 period.
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 loans 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 loans are 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 loss
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.
ALTERNATIVE ENERGY LIMITED
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2011 TO 29 FEBRUARY
2012 (Continued)
17. Basic and diluted loss per share (Continued)
1.9.2011 to 29.2.2012 1.9.2010 to 28.2.2011
Unaudited Unaudited
Basic Diluted Basic Diluted
Net loss attributable
to equity holders
of the Company US$1,462,366 US$1,462,366 US$2,106,042 US$2,106,042
============== ============== ============== ==============
Number of shares Number of shares
Basic Diluted Basic Diluted
Weighted average
number of ordinary
shares 1,511,579,239 1,511,579,239 1,422,376,000 1,422,376,000
Adjustments
for potentially
dilutive ordinary
shares - 190,862,800 - 149,973,000
-------------- -------------- -------------- --------------
1,511,579,239 1,702,442,039 1,422,376,000 1,572,349,000
============== ==============
Basic loss per
share # # # #
============== ============== ============== ==============
# denotes a figure which is less than US$0.01 cent
18. 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:
1.9.2011 to 1.9.2010 to
29.2.2012 28.2.2011
Number of share options
('000) ('000)
Balance at beginning of financial
periods/year 81,000 81,000
Number of share options granted during
the financial periods/year - (7,000)
Balance at end of financial periods/year 81,000 81,000
============ ===========
81,000,000 share options were granted in the prior financial
year. The estimated fair value of the share options granted is
US$1,480,000.
18. Share-based payments (Continued)
The fair value of share options as at the date of grant is
estimated by an external valuer using the Black-Scholes-Merton
model, taking into account the terms and conditions upon which the
options were granted. The inputs to the model used are shown
below.
Risk-free Expected Share price
Date of Expected interest life of Exercise at date of
grant volatility rate options price grant
(%) (%) (years) (US$) (US$)
5 May 2010 21.5 2.72-3.72 5-10 0.03 0.04
19. Related parties transactions
For the purposes of these unaudited condensed consolidated
financial information, parties are considered to be related to the
Group if the Group has the ability, directly or indirectly, to
control the party or exercise significant influence over the party
in making financial and operating decisions, or vice versa, or
where the Group and the party are subject to common control or
common significant influence. Related parties may be individuals or
other entities.
In addition to the information disclosed elsewhere in the
unaudited condensed consolidated financial information, related
party transactions between the Group and the Company and its
related parties during the financial year were as follows:
Unaudited Unaudited
1.9.2011 1.9.2010
to to
29.2.2012 28.2.2011
US$ US$
Purchased of patents and technology
from a related party
which is also a controlling party 10,000,000 4,000,000
Convertible loan from a director 3,594,543 888,744
========== =========
Compensation of directors and key management personnel
The remuneration of directors during the financial period was as
follows:
Unaudited Unaudited
1.9.2011 1.9.2010
to to
29.2.2012 28.2.2011
US$ US$
Remuneration 222,551 195,380
Post-employment benefits - CPF contribution 5,650 4,779
Short-term benefits 1,426 662
Consultancy fee paid - 19,175
Consultancy fee paid to companies
in which certain directors
have interest 40,000 20,000
Share options expense - 198,356
264,465 438,352
========== ==========
19. Related parties transactions (Continued)
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.
20. 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 Asia.
21. Comparative figures
Certain comparative figures have been reclassified to conform to
the current period's presentation, to better reflect the respective
classifications.
Unaudited Unaudited
28.2.2011 28.2.2011
As previously
As restated disclosed
US$ US$
Statement of financial position:
Issued capital 14,383,792 18,383,792
Capital reserve 4,000,000 -
============ ==============
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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