WEB NEWS Comments & Business Outlook
AuraSource, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Nine Months Ended
2015
2014
2015
2014
Revenue
$
—
$
486,668
$
—
$
531,668
Cost of revenue
—
385,069
—
401,569
Gross profit
—
101,599
—
130,099
Operating expenses:
General & administrative expenses
260,517
323,872
905,716
1,110,185
Total operating expenses
260,517
323,872
905,716
1,110,185
Loss from operations
(260,517
)
(222,273
)
(905,716
)
(980,086
)
Interest income (expense) and other, net
31,439
(3,262
)
25,750
(86,883
)
Net loss applicable to common stockholders
$
(229,078
)
$
(225,535
)
$
(879,966
)
$
(1,066,969
)
Basic & diluted loss per share
$
(0.00
)
$
(0.00
)
$
(0.01
)
$
(0.02
)
Weighted average shares outstanding
60,206,654
58,424,734
60,206,654
58,420,006
Management Discussion and Analysis
Revenues were $0 and $486,668 for the three months ended December 31, 2015 and 2014, respectively. The revenue was attributable to the commencement of shipping minerals and the sale of mineral processing technology in 2014.
Deal Flow
CALCULATION OF REGISTRATION FEE
Title of Each Class of Securities
to be Registered
Amount to be
Registered (1)
Proposed Maximum
Offering Price
Per Share (2)
Proposed Maximum
Aggregate
Offering Price
Amount of
Registration Fee
Common Stock, par value $0.001 per share, issuable pursuant to the Equity Purchase Agreement
5,000,000
$ 0.15
$ 750,000
$ 75.53
Comments & Business Outlook
AuraSource, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended September 30,
Six Months Ended September 30,
2015
2014
2015
2014
Revenue
$
—
$
—
$
—
$
45,000
Cost of revenue
—
—
—
16,500
Gross profit
—
—
—
28,500
Operating expenses:
General & administrative expenses
310,667
398,009
645,200
786,313
Total operating expenses
310,667
398,009
645,200
786,313
Loss from operations
(310,667
)
(398,009
)
(645,200
)
(757,813
)
Interest income (expense) and other, net
(3,917
)
(2,140
)
(5,688
)
(83,622
)
Net loss applicable to common stockholders
$
(314,304
)
$
(400,149
)
$
(650,888
)
$
(841,435
)
Basic & diluted loss per share
$
(0.01
)
$
(0.01
)
$
(0.01
)
$
(0.01
)
Weighted average shares outstanding
60,206,654
58,424,734
60,206,654
58,417,630
Management Discussion and Analysis
Revenues were $0 for the three months ended September 30, 2015 and 2014, respectively.
Deal Flow
CALCULATION OF REGISTRATION FEE
Title of Each Class of Securities
to be Registered
Amount to be
Registered (1)
Proposed Maximum
Offering Price
Per Share (2)
Proposed Maximum
Aggregate
Offering Price
Amount of
Registration Fee
Common Stock, par value $0.001 per share, issuable pursuant to the Equity Purchase Agreement
5,000,000
$ 0.15
$ 750,000
$ 75.53
Deal Flow
CALCULATION OF REGISTRATION FEE
Title of Each Class of Securities
to be Registered
Amount to be
Registered (1)
Proposed Maximum
Offering Price
Per Share (2)
Proposed Maximum
Aggregate
Offering Price
Amount of
Registration Fee
Common Stock, par value $0.001 per share, issuable pursuant to the Equity Purchase Agreement
5,000,000
$ 0.15
$ 750,000
$ 75.53
Comments & Business Outlook
AuraSource, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three months ended June 30,
2015
2014
Revenue
$
—
$
45,000
Cost of revenue
—
16,500
Gross profit (loss)
—
28,500
Operating expenses
General and administrative expenses
334,533
388,215
Total operating expenses
334,533
388,215
Loss from operations
(334,533
)
(359,715
)
Interest income (expense) and other, net
(1,772
)
(81,482
)
Net loss applicable to common stockholders
$
(336,305
)
$
(441,196
)
Basic & diluted loss per share
$
(0.01
)
$
(0.01
)
Weighted average shares outstanding
60,206,654
58,410,448
Management Discussion and Analysis
Revenues
Revenues were $0 and $45,000 for the three months ended June 30, 2015 and 2014, respectively. The decrease in revenue was attributable to the not shipping minerals for processing.
Comments & Business Outlook
AURASOURCE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED MARCH 31, 2015 AND 2014
2015
2014
REVENUES
Product
$
519,168
$
454,820
Total revenues
519,168
454,820
COST OF SALES
(444,149
)
(222,189
)
GROSS PROFIT
75,019
232,631
OPERATING EXPENSES
General and administrative expenses
1,431,572
1,539,920
Total operating expenses
1,431,572
1,539,920
LOSS FROM OPERATIONS
(1,356,553
)
(1,307,289
)
Loss in settlement of debt
—
(62,500
)
Interest income (expense) and other, net
(98,353
)
(1,478,589
)
NET LOSS
$
(1,454,906
)
$
(2,848,378
)
NET LOSS PER SHARE OF COMMON STOCK—Basic and diluted
$
(0.02
)
$
(0.05
)
WEIGHTED AVERAGE SHARES OUTSTANDING—Basic and diluted
58,694,562
52,077,920
Management Discussion and Analysis
Revenues
Comments & Business Outlook
AuraSource, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Nine Months Ended
2014
2013
2014
2013
Revenue
$
486,668
$
—
$
531,668
$
104,820
Cost of revenue
385,069
—
401,569
72,859
Gross profit
101,599
—
130,099
31,961
Operating expenses:
General & administrative expenses
323,872
233,437
1,110,185
926,041
Total operating expenses
323,872
233,437
1,110,185
926,041
Loss from operations
(222,273
)
(233,437
)
(980,086
)
(894,080
)
Interest income (expense) and other, net
(3,262
)
(52,093
)
(86,883
)
(371,041
)
Net loss applicable to common stockholders
$
(225,535
)
$
(285,530
)
$
(1,066,969
)
$
(1,265,121
)
Basic & diluted loss per share
$
(0.00
)
$
(0.01
)
$
(0.02
)
$
(0.02
)
Weighted average shares outstanding
58,424,734
52,089,903
58,420,006
51,672,516
Management Discussion and Analysis
Revenues
Revenues were $486,668 and $0 for the three months ended December 31, 2014 and 2013, respectively. The increase in revenue was attributable to the commencement of shipping minerals and the sale of mineral processing technology.
Comments & Business Outlook
AuraSource, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Six Months Ended
2014
2013
2014
2013
Revenue
$
—
$
96,216
$
45,000
$
104,820
Cost of revenue
—
63,754
16,500
72,859
Gross profit
—
32,462
28,500
31,961
Operating expenses:
General & administrative expenses
398,009
287,754
786,313
692,604
Total operating expenses
398,009
287,754
786,313
692,604
Loss from operations
(398,009
)
(255,292
)
(757,813
)
(660,643
)
Interest income (expense) and other, net
(2,140
)
(34,844
)
(83,622
)
(318,948
)
Net loss applicable to common stockholders
$
(400,149
)
$
(290,136
)
$
(841,435
)
$
(979,591
)
Basic & diluted loss per share
$
(0.01
)
$
(0.01
)
$
(0.01
)
$
(0.02
)
Weighted average shares outstanding
58,424,734
50,828,568
58,417,630
50,828,568
Management Discussion and Analysis
Revenues were $0 and $96,216 for the three months ended September 30, 2014 and 2013, respectively.
Comments & Business Outlook
Comments & Business Outlook
AURASOURCE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED MARCH 31, 2014 AND 2013
2014
2013
REVENUES
Product
$
454,820
$
—
Total revenues
454,820
—
COST OF SALES
(222,189
)
—
GROSS PROFIT
232,631
—
OPERATING EXPENSES
General and administrative expenses
1,539,920
1,282,648
Total operating expenses
1,539,920
1,282,648
LOSS FROM OPERATIONS
(1,307,289
)
(1,282,648
)
Loss in settlement of debt
(62,500
)
—
Interest income (expense) and other, net
(1,478,589
)
(1,276,583
)
NET LOSS APPLICABLE TO COMMON STOCKHOLDERS
$
(2,848,378
)
$
(2,559,231
)
NET LOSS PER SHARE OF COMMON STOCK—Basic and diluted
$
(0.05
)
$
(0.05
)
WEIGHTED AVERAGE SHARES OUTSTANDING—Basic and diluted
52,077,920
48,610,830
Management Discussion and Analysis
Results from Operations
Revenues
Revenues were $454,820 and zero for 2014 and 2013, respectively. We expect to begin to increase our revenues starting in our fiscal year ending 2015 with additional funding.
Auditor trail
Item 4.01 Changes in Registrant’s Certifying Accountant.
On April 4, 2014, AuraSource, Inc. (the “Registrant”) dismissed Goldman Kurland and Mohidin, LLP (“GKM”) as its independent registered public accounting firm. The decision was approved by the Registrant’s Board of Directors.
The reports of GKM on the Registrant’s financial statements for the fiscal years ended March 31, 2013 and 2012 did not contain an adverse opinion or disclaimer of opinion and were not modified as to uncertainty, audit scope, or accounting principles, except the report did contain an explanatory paragraph related to the Registrant’s ability to continue as a going concern. During the Registrant’s fiscal years ended March 31, 2013 and 2012, and the subsequent period through the date of this report, there were (i) no disagreements with GKM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of GKM would have caused GKM to make reference to the subject matter of the disagreements in connection with its report, and (ii) no “reportable events” as that term is defined in Item 304(a)(1)(v) of Regulation S-K.
The Registrant provided GKM with a copy of the disclosures made in this Current Report on Form 8-K and requested that GKM furnish it with a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the Registrant’s statements herein and, if not, stating the respects in which it does not agree. A copy of the letter furnished by GKM is attached as Exhibit 16.1 hereto.
On April 4, 2014, the Registrant engaged TAAD, LLP (“TAAD”) as the Registrant’s new independent registered public accounting firm. The appointment of TAAD was approved by the Registrant’s Board of Directors.
Comments & Business Outlook
AuraSource, Inc.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Nine Months Ended
2013
2012
2013
2012
Revenue
$
—
$
—
$
104,820
$
—
Cost of revenue
—
—
72,859
—
Gross profit
—
—
31,961
—
Operating expenses:
General & administrative expenses
233,437
305,768
926,041
971,089
Total operating expenses
233,437
305,768
926,041
971,089
Loss from operations
(233,437
)
(305,768
)
(894,080
)
(971,089
)
Interest income (expense) and other, net
(52,093
)
—
(371,041
)
(5,868
)
Net loss applicable to common stockholders
$
(285,530
)
$
(305,768
)
$
(1,265,121
)
$
(976,957
)
Basic & diluted loss per share
$
(0.01
)
$
(0.01
)
$
(0.02
)
$
(0.02
)
Weighted average shares outstanding
52,089,903
48,334,690
51,672,516
48,133,208
Acquisition Activity
On February 15, 2012 , we entered into an agreement with Gulf Coast Holdings, LLC (“GCH”) to reserve export ready 1 million tons of 64% Fe higher content iron ore and 13 million 45% grade lower content iron ore, and 2 million tons of manganese ore. We agreed to issue 16 million shares of our common stock to GCH or assigns (“Mineral Deposit Shares”). The Mineral Deposit Shares shall vest and be delivered as follows; 5 million immediately, 11 million upon the successful completion of the first customer order of total revenue over $5 million. Success shall be defined as customer acceptance of order and final payment. To the extent a successful order does not occur the unvested Mineral Deposit Shares shall be returned to our treasury and cancelled. GCH has the right to designate two board members who we mutually agree to. A copy of the Mineral Reserve Agreement is attached to this Current Report on Form 8-K as Exhibit 10.1 and is incorporated herein by reference.
On February 15, 2012, we entered into an agreement with Gulf Coast Mining Group, LLC (“GCM”) to purchase (i) higher content iron ore, lower content iron ore and manganese ore (collectively, the "Minerals") which will be delivered loose in bulk modified FOB. A copy of the Agreement to Purchase Minerals is attached to this Current Report on Form 8-K as Exhibit 10.2 and is incorporated herein by reference.
On February 15, 2012, we entered into an agreement with Gulf Coast Holdings, LLC (“GCH”) appointing GCH as the exclusive North American licensee for use and exploitation of our technology as relates to applications involving precious metals in exchange for royalty payments of five percent of gross revenues. A copy of the Exclusive License Agreement is attached to this Current Report on Form 8-K as Exhibit 10.3 and is incorporated herein by reference.
Shareholder Letters
Dea r Shareholders Developments in Calendar 2010
Going forward
Deal Flow
On September 30, 2010, the Company
completed a private placement offering to certain institutional and accredited investors pursuant to which the Company sold an aggregate of
400,000 shares of the Company’s common stock resulting in gross proceeds of
$500,000 to the Company. The Company intends to use proceeds of the offering for working capital and to develop an AuraCoal plant in the Gulf of Tonkin Economic and Development Area which utilizes low-grade coal and semi-coke to produce a coal –water slurry that can be used to heat industrial boilers (a process used for 40 years). Patent pending process removes ash and sulfur from coal on a pre-combustion basis, providing significant cost savings and higher environmental compliance for end-users than other coal-water slurry alternatives.. The Company has no material relationship with any of the institutional and accredited investors participating in the private placement offering other than in respect of the Subscription Agreements.
Research
Aurasource gears up for China :
We believe our HCF technology, AuraCoaltm, will be the next generation of hydrocarbon clean fuel technology. It involves grinding coal into very fine particles, mixing it with water and selected chemicals to make a slurry mixture and using a proprietary biological treatment of the coal slurry mixture to reduce heavy minerals, such as sulfur. We believe such slurry mixture will have sufficient fluidity to move through pipelines, process delivery piping and burner injection nozzles. Our goal is to demonstrate to power plants and similar users that our HCF technology can convert their plants to use the technology at a lower cost than any current alternative. Given sufficient capital and development of our HCF technology, we plan to market it to plants in China and the Unite d States with the objective of having a beta demonstration site in each country .
Appears to be targeting the:
Clean coal sector :
AuraCoal is patent pending technology designed to remove sulfur and ash from coal pre-combustion. This reduces energy costs and helps to eliminate harmful emissions. This proprietary clean coal technology produces a coal water mixture, which contains only trace amounts of sulfur and ash and constitutes a superb alternative to oil or natural gas. AuraCoal can be delivered via pipeline in a non-volatile state. The conversion to an AuraCoal system is designed to deliver immediate and substantive reductions in harmful particle emissions as well as savings in transportation, processing and safety costs. AuraSource plans to construct its pilot plant in mid 2010 and distribute the coal based clean industrial fuel produced by this proprietary new generation of clean coal technology in 20 11.
hydrocarbon clean fuel sector :
AuraSource has also licensed another proprietary hydrocarbon clean fuel technology, AuraFuelTM, which utilizes a low temperature catalytic process to convert oil shale, asphalt shale and low-ranking coal to hydrocarbon clean fuel products in a highly efficient manner. This technology was developed by EERI, a Chinese government owned energy research institute. The Chinese government along with an international technical firm validated the technology. EERI patented the technology and the production process. AuraSource licensed this technology for Guangxi province of China and the United States. We are currently developing our own intellectual property associated with this technology. AuraSource is partnering with three Chinese companies to start construction on a pilot plant by mid 2010 with production starting in 2011. In the United States, we are currently in our planning stages and pursuing a suitable site on public or private lands to start a pilot plant in 2011 .
Note: ARAO generates no revenues. Revenues will be dependent upon the execution of its strategy which will require capital.
Liquidity Requirements
The Company is seeking 3/31/2011 While we believe we have sufficient cash resources for the next twelve months, in order to meet our business goals we will need to seek additional funding or enter into strategic partnerships.
