Agrisolar Solutions (OTC BB:AGSO)

Agrisolar Solutions, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

For The Three Months Ended June 30, 2011 and 2010

(Unaudited)

Results For the Fourth Quarter:  

• Revenue for three months ended December 31, 2010 was $1,790,117, as compared to revenue of $1,051,093 for three months ended December 31, 2009, an increase of $739,024 (70.3%).  

During the year ended March 31, 2010, three models of our line of solar insect killers were approved by the Ministry of Agriculture of the People’s Republic of China (“PRC”) and successfully became items which are subsidized by the PRC government, thus the sales amount increased significantly. Moreover, we employed more sales agent to promote our products in different provinces that have approved our products.  The PRC government has extended the program under which the Company’s products have been approved for subsidy until 2020.

As of December 31, 2010, we had working capital of $3,120,396 as compared to a working capital deficit of $200,578 at March 31, 2010.  The improved working capital results from an increase in sales activity in the nine month period ended December 31, 2010.

We anticipate that we will require additional working capital for various purposes, including payment of expenses associated with production and sale of our line of solar insect killer under the subsidy program of the PRC Ministry of Agriculture.   Based on initial purchase plan estimates received, management is expecting significant orders of its solar insect killer in 2011 and beyond.  The expenses associated with a rapid increase in production include purchase of raw materials, payment of costs associated with hiring additional staff, and payment of costs associated with an increase in inventory.  We also intend to use working capital to improve the efficiency of the our production line and to pay marketing and development costs related to seeking to establish distribution channels for our products in markets outside of China, including particularly the US and South America.  

We anticipate that we will require additional working capital for various purposes, including payment of expenses associated with production and sale of our line of solar insect killer under the subsidy program of the PRC Ministry of Agriculture.   Based on initial purchase plan estimates received from 26 provinces, management is expecting significant orders of its solar insect killer in 2010 and beyond.  The expenses associated with a rapid increase in production include purchase of raw materials, payment of costs associated with hiring additional staff, and payment of costs associated with an increase in inventory.  We also intend to use working capital to improve the efficiency of the our production line and to pay marketing and development costs related to seeking to establish distribution channels for our products in markets outside of China, including particularly the US and South America. 

The Company does not currently have any commitments to obtain working capital. However, we believe that the Company’s best option for raising working capital is through an equity offering and sale of our equity securities. 

We are currently offering subscriptions of Series AA Preferred Stock up to a maximum of 17,142,857 shares at a price of $0.35 per share, on a “best efforts” basis.  The Series AA Preferred Stock has a stated value of $0.35 per share and is entitled to one vote for each share held. The holders of AA Series Preferred Stock also are entitled to an annual dividend rate of 4% and payable in cash, semi-annually, in arrears. In the event of liquidation, the holders of AA Series Preferred Stock are entitled to a preference of $0.35 per share, in cash, equal to 100% of the stated value for each share outstanding, plus an amount equal to all accrued but unpaid dividends thereon, whether or not declared. At the option of the holders, AA Series Preferred Stock will be converted into one (1) common stock of the Company and one-half (1/2) warrant to purchase an additional share of common stock at a price of $0.7 per share in a period of 5 years, together with the payment of all accrued but unpaid dividends in the form of common stock at a price of $0.35 per share.

Fuwaysun was formed via  a reverse merger with Agrisolar Solutions, completed on January 8, 2010

Company Snap Shot: Fuwaysun is primarily engaged in the development, production and sale of solar products.

The audited consolidated financial statements of Fuwaysun are not currently available. Such financial statements will be filed not later than March 26, 2010 by amendment to this Current Report on Form 8-K.

Post Merger Share Calculation:

•      298,397: Pre reverse merger outstanding shares
• 58,055,000: Newly issued shares of Common Stock

GeoTeam® best effort calculation of total post reverse merger outstanding shares assuming full conversions:  58,353,397

Source: 8K January 8, 2010