|
2001
NEWS
December 6, 2001
WorldWater
Corp. Signs $52 Million Water and Power Development Agreement
With Philippine Government
August 20, 2001
WorldWater
Corp. Names John D. Herrman President of Philippine Subsidiary
August 14, 2001
WorldWater
Corp. - Quarterly Report (SEC form 10QSB) - EDGAR Online
June 14, 2001
WorldWater
Shareholders at Annual Meeting Approve Appointment of Former U.S.
Ambassador Lange Schermerhorn as Member of Company's Board
June 12, 2001
WorldWater
Corp. CEO Sees Urgent Need for Reliable Clean Water And Electrical
Power Sources in Developing Nations Around the World
May 31, 2001
WorldWater
Corp. Chairman Quentin T. Kelly to Present at New York Society
of Security Analysts Alternative Energy Conference
May 15, 2001
WORLDWATER
CORP - Quarterly Report (SEC form 10-Q) - EDGAR Online
April 16, 2001
WORLDWATER
CORP - Annual Report (SEC form 10KSB) - EDGAR Online |
|
| WorldWater
Corp. Signs $52 Million Water and Power Development Agreement with
Philippine Government — US Trade
and Development Agency to Fund Initial Phase Feasibility Study To
Prepare for Agricultural Program Using Company's Solar Powered Irrigation
and Deep Well Pumps. |
| PENNINGTON, NJ, Dec.
6/PR NEWSWIRE/ |
WorldWater Corp. (OTC
BB:WWAT.OB - news), today announced the signing of
agreements with the Government of the Philippines (Department
of Agriculture) and the US Trade and Development Agency (USTDA)
to implement a $52 million program which will utilize the Company's
proprietary solar pumps for mainstream power in broad sections
of the Philippine Islands, from Luzon south to Mindanao.
The USTDA agreement approved funding the initial phase of the
program in the form of a water and power feasibility study to
be performed immediately by WorldWater.
Present for the signing in Washington DC in late November but
available for announcement today were President Gloria Macapagal
Arroyo, Philippine Secretary of Agriculture Leonardo Montemayor,
USTDA Director Thelma Askey and Quentin T. Kelly, Chairman and
CEO of WorldWater.
``The USTDA funding for the study is $302,500,'' Mr. Kelly said,``
with WorldWater's hydrogeologists and engineers performing the
project in conjunction with our subsidiary, WorldWater (Phils)
Inc., beginning in January.''
The $52 million project is planned for financing by PNC Bank,
with US ExIm Bank guaranteeing 85%, all backed by a Philippine
government sovereign guarantee, he stated.
The nationwide irrigation development project is scheduled to
follow immediately on completion of the study in late Spring 2002,
according to Mr. Kelly.
``President Arroyo thanked U.S. Secretary of Agriculture Ann Veneman
for extending some $230 million worth of guarantees, credit and
grants to modernize Philippine agriculture and rural poverty,''
said Philippine Agriculture Secretary Montemayor following the
ceremonies.
The WorldWater program will be carried out under the auspices
of the National Irrigation Administration (NIA) of the Dept. of
Agriculture, according to Jesus M. Paras, NIA Administrator. ``The
project, 'Appropriate Irrigation Technologies for Enhanced Agricultural
Production,' will use WorldWater's powerful solar pumps and power
products to irrigate high value crops and to bring electricity
to unelectrified areas. The project will take WorldWater and NIA
engineers into all areas of the Philippines and is scheduled to
be completed within 24 months,'' he said.
Mr. Kelly added, ``We have been active in the Philippines for
more than three years and are very familiar with their groundwater
systems and water resources, including the areas in Mindanao inhabited
by the Islamic rebels. In fact, we have actually installed our
solar pumps in the headquarters areas of the rebels -- it was this
knowledge of the area and our capabilities in operating there and
throughout the Islands that contributed to our earning this major
project.''
WorldWater, which provides solutions to water problems through
use of its proprietary solar power systems, has signed several
other contracts in the Philippines in recent months, particularly
with communities on the main tourist Island of Cebu, for rural
utility water and power, Mr. Kelly stated. ``The cumulative total
of our business with these communities is more than $10 million,''
he said, adding that implementation of the first systems in the
community of Ronda also begins in January, so that, with the feasibility
study for the large agricultural project, WorldWater will be starting
two principal engineering programs that month, in addition to its
on-going lighting program in Zambales, on the Island of Luzon.
This document may contain Statements which constitute ``forward-looking
statements'' within the meaning of the Private Securities Litigation
Act Of 1995. ``Forward-looking statements'' include any statement
which is not of purely historical fact, such as statement concerning
plans, objectives, goals, strategies and future events and underlying
assumptions thereof. Such forward-looking statements involve known
and unknown risks, uncertainties expressed or implied by such forward-looking
statements to be materially different from those projected. Such
factors include, among other, general economic and business conditions
which may impact demand for the Company's solar generated pumps
and electricity; changes in tax laws and regulations; the ability
of the company to implement its marketing strategy and to expand
its business in the worldwide market; the ability of the Company
to build its production facility up to the level of efficiency
and output of its planned production; and changes in laws and government
regulations applicable to the company, including laws in foreign
nations.
SOURCE: WorldWater Corp.
(OTC
BB:WWAT.OB - news) |
|
| WorldWater
Corp. Names John D. Herrman President of Philippine Subsidiary — Former
U.S. Trade and Development Agency Executive to Focus on Rapidly Growing
Business As Company Begins Work on $10 Million in Projects in Cebu
Province |
| PENNINGTON, NJ, Aug.
20 /PR NEWSWIRE/ |
WorldWater Corp. (OTC
BB:WWAT.OB - news), a full-service water management
and solar engineering company specializing in solar pumps and
solar electrical systems to provide clean water and electricity
to users in developing countries around the world, announced
today the appointment of John D. Herrman, former U.S. Trade and
Development Agency Executive for the Far East, as President and
Chief Operating Officer of the Company's WorldWater (Philippines)
Inc. subsidiary.
Mr. Herrman’s appointment to the new position, effective
September 15, was announced by Quentin T. Kelly, Chairman and
Chief Executive of Pennington-based WorldWater Corp., the parent
company, and Guido Delgado, Chairman and CEO of WorldWater (Philippines)
Inc.
Mr. Herrman, 36, formerly was Deputy Regional Director for Asia-Pacific
of the U.S. Trade and Development Agency and has been based in
Manila since 1992. He has managed projects for Indonesia, Malaysia,
Thailand, Brunei, Singapore and the Philippines. He holds a Masters
degree in Economics and international affairs from Tulane University
and a BA from the University of Kansas.
“World Water (Philippines) has signed contracts for cumulative
business of around $10 million,” Mr. Kelly stated. “John's
knowledge of the region makes him an excellent choice for directing
our operations in the Philippines.” Mr. Kelly and Mr. Delgado
noted that Mr. Herrman's extensive background in Philippine and
Asian business will be a valuable asset at a time when WorldWater
is experiencing rapid growth in the area.
Mr. Kelly said that starting in September, WorldWater (Philippines)
has contracted to establish community water and power infrastructure
in more than 150 small communities on the island of Cebu over the
next two years, utilizing the Company’s proprietary solar
powered water pumping and electrical systems. Cebu, the country’s
largest province, has a population of two million, with most of
the communities and rural areas having no access to clean water,
healthy sanitation facilities or electrical power. Mr. Kelly added
that WorldWater (Philippines) is the implementing contractor and,
in addition to supplying and installing its power products, will
oversee Filipino sub-contractors for the projects.
Mr. Kelly said the Philippine National Bank, the Landbank and
the Development Bank of the Philippines are financing the WorldWater
operations for the communities.
WorldWater Corp. (http://www.worldwater.com) is
a full-service water management and solar engineering company specializing
in solving water problems through use of solar energy. The Company
produces and distributes the proprietary AquaSafe(TM) and
AquaMax 2200(TM) solar water pumps, capable of delivering
water in volumes from 5 gallons to more than 2000 gallons per minute.
This document may contain Statements which constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Act of 1995. “Forward-looking statements” include any
statement which is not of purely historical fact, such as statements
concerning plans, objectives, goals, strategies and future events
and underlying assumptions thereof. Such forward-looking statements
involve known and unknown risks, uncertainties expressed or implied
by such forward-looking statements to be materially different from
those projected. Such factors include, among other, general economic
and business conditions which may impact demand for the Company’s
solar generated pumps and electricity; changes in tax laws and
regulations; the ability of the Company to implement its marketing
strategy and to expand its business in the worldwide market; the
ability of the Company to build its production facility up to the
level of efficiency and output of its planned production; and changes
in laws and government regulations applicable to the Company, including
laws in foreign nations.
SOURCE: WorldWater Corp.
(OTC
BB:WWAT.OB - news) |
|
| WORLDWATER
CORP (WWAT.OB) Quarterly Report (SEC form 10QSB) |
| PENNINGTON, NJ, Aug.
14 /PR NEWSWIRE/ |
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF
OPERATIONS
Statements in this quarterly Report on Form 10-QSB concerning
the Company's outlook or future economic performance; anticipated
profitability, gross billings, commissions and fees, expenses
or other financial items; and statements concerning assumptions
made or exceptions to any future events, conditions, performance
or other matter are “forward looking statements” as
that term is defined under the Federal Securities Laws. Forward
looking statements are subject to risks, uncertainties, and other
factors that could cause actual results to differ materially
from those stated in such statements. Such risks, uncertainties
and factors include, but are not limited to, (1) that there can
be no assurance that the Company will grow profitably or manage
its growth, (2) risks associated with acquisitions, (3) competition,
(4) the Company’s quarterly results have fluctuated in
the past and are expected to fluctuate in the future, (5) the
loss of services of key individuals which could have a material
adverse effect on the Company’s business, financial condition
or operating results and (6) risks associated with operating
in emerging countries.
OVERVIEW
WorldWater Corporation is a water and power solutions company that
provides proprietary solar pumping and lighting equipment, water
management and engineering assessments, and project financing
to governments and the private sector of emerging nations. The
Company fills a major infrastructural void by acting as contractor,
implementer, key equipment supplier and water/power manager for
rural communities, delivering clean water from deep wells and
rivers for drinking and irrigation with its proprietary solar
pumps and solar electrical systems. There are literally millions
of such targeted communities comprising WorldWater Corp.’s
international market. In mid-1997, the Company made its first
production shipment of its proprietary products (to the Philippines)
and has since begun limited operations in 16 emerging nations
in Asia, Latin America and Africa.
The mission of the Company is to be the leading provider of solar
powered water supply and electricity for emerging nations throughout
the world.
During the early stage of market penetration, marketing and related
costs invariably exceed revenues. WorldWater is unique among its
competition in that it does not merely solicit and await tendered
contracts from emerging market governments or international agencies,
but actively initiates projects by proposing rural water and power
solutions to key decision-makers at the highest government levels.
Once WorldWater obtains recognition and acceptance at the highest
levels, project development meetings are held with international
financing agency decision-makers and other national and local level
officials. After financing is in place, engineering assessment,
community preparation and equipment installation are effected,
leading to completion of turnkey programs. Management anticipates
that as target markets for its solar powered water pumping and
electric equipment become more fully developed, operating profits
will be achieved.
RESULTS OF OPERATIONS
REVENUE. For the six months ended June 30, 2001 revenue
decreased slightly to $145,565 from $183,402 in the same period
of 2000. The Company continues to target its sales efforts towards
large contracts and is involved in ongoing negotiations pending
contracts with several countries including the Philippines, Sri
Lanka, Pakistan, Ethiopia and Somalia.
GROSS PROFIT. Gross profit of $69,184 was recognized for
the six months ended June 30, 2001, down from $74,897 for the same
period in 2000. Gross profit for the three months ended June 30,
2001 was $37,460 as compared to $13,985 in 2000. Cost of sales
for the six months was $76,381, down from $108,505 from the previous
period. Cost of sales for the three month period was $28,105 as
compared to $26,298 for the same period in 2000. The operating
loss was $844,342 for the six months in 2001 compared to an operating
loss of $911,404 for the same period in 2000. For the three months
ended June 30, 2001 the operating loss was $432,742 as compared
to $629,417 in 2000.
MARKETING, GENERAL AND ADMINISTRATIVE. Marketing, general
and administrative expenses decreased by $70,252 in the six month
period ending June 30, 2001 to $731,380, down from $801,632 in
the same period of 2000. Marketing, general and administrative
expenses decreased $179,818 during the three month period to $382,177
as compared to $561,995 during the three month period in 2000.
The decrease is primarily due to lower travel expenditures which
can be attributed to the use of the office and qualified staff
located in the Philippines and consultants in other key countries.
RESEARCH AND DEVELOPMENT. Research and development expenses
decreased slightly by $2,523 for the six month period to $182,146,
down from $184,669 in the same period of 2000. Research and development
expenses increased slightly for the three month period by $6,618
to $88,025 as compared to $81,407 in 2000. The Company has several
water and solar products in various stages of research and development.
New products under development include solar water stations. The
solar water stations will be a turnkey water system that will house
in one central location all needed technology for the retail dispensing
of safe drinking water to the local populace who will pay by custom
WorldWater debit cards (“SmartCard”). The first shipment
of these systems is expected in the fourth quarter of this year.
INCOME TAXES. The Company recognized no income tax expense
for 2001, and 2000 to date. The Company has net operating loss
carry-forwards resulting in a potential federal tax benefit to
the Company as of January 1, 2001 of approximately $9.2 million.
During 2000 the Company’s application to the New Jersey Division
of Taxation and the New Jersey Economic Development Authority to
sell its State of New Jersey Corporate Operating Losses was approved.
The new law was enacted January 1, 1999 and allows emerging technology
companies involved in research and development the opportunity
to sell their state loss carry-forwards and research and development
credits to profitable companies in the state for not less than
75% of their net tax value. The Company was able to sell its Net
Operating Losses for $163,887 in 2000 and $475,285 in 1999 and
has applied to sell its loss carry-forwards again in fiscal year
2001.
LIQUIDITY AND CAPITAL RESOURCES
The Company’s cash and cash equivalents decreased slightly
by $4,296 to $62,933 from December 31, 2000 to June 30, 2001. The
net cash used in operating activities during this six month period
in 2001 was $549,678 compared to $1,353,893 in 2000.
The Company was able to raise $91,000 from the exercise of Warrants,
$122,607 from the exercise of options and $246,273 through a private
placement of stock. The Company was also able to enter into short
term notes with individuals which totaled approximately $114,500.
Cash provided by financing activities in the six months ended June
30, 2001 was $559,529 compared to $1,777,248 in 2000.
As of June 30, 2001, the Company was in arrears for dividends
payable to its Series A Preferred Stock shareholders in the amount
of $70,000.
SALE OF SECURITIES DURING THE SECOND QUARTER 2001
During the second quarter, the Company issued 988,000 restricted
common stock shares for cash proceeds totaling $245,750 and 322,500
unrestricted common stock shares for cash proceeds totaling $101,500.
For the six months ending June 30, 2001, the Company has issued
1,306,750 restricted shares for cash proceeds totaling $337,273
and 398,150 unrestricted common stock shares for cash proceeds
totaling $122,607.
Part 2. Item 1
|
|
| WorldWater
Shareholders at Annual Meeting Approve Appointment of Former U.S.
Ambassador Lange Schermerhorn as Member of Company's Board. Her
Expertise in East African and World Affairs Cited As Valuable Resource
For the Company |
| PENNINGTON, NJ, June
14 /PR NEWSWIRE/ |
WorldWater Corp. (OTC
BB:WWAT.OB - news), a full-service water management
and solar engineering company specializing in solar pumps and
solar electrical systems to provide clean water and electricity
to users in developing countries around the world, announced
today that shareholders attending the annual meeting had ratified
the appointment of Lange Schermerhorn, former U.S. Ambassador
to Djibouti, as a member of the Company's Board of Directors.
“Lange Schermerhorn’s knowledge and well-grounded
understanding of the problems facing developing countries will
be invaluable to WorldWater as the Company continues to penetrate
markets in developing countries around the world,” Chairman
and Chief Executive Officer Quentin Kelly told shareholders attending
the meeting. “Her background in economics and contacts with
international organizations that assist in funding new construction
and development projects will be extremely helpful to the Company.”
WorldWater, which has signed an agreement with the government
of Somalia to be the East African country’s master consultant
and contractor for all water and energy programs, currently has
solar pumping and solar electrical systems operating in the Philippines,
Sri Lanka, Pakistan, Tanzania, and Ecuador, among other countries.
It also is negotiating projects in other developing nations.
Ms. Schermerhorn, who recently retired as U.S. Ambassador to Djibouti,
is a 30-year veteran of the U.S. Foreign Service, holds expertise
in the politics and economics of East African countries such as
Djibouti, Ethiopia, Somalia and nations where WorldWater does business.
She has covered the globe as senior foreign officer on assignments
ranging from Deputy Chief of Mission (Deputy Ambassador) in Brussels,
with specific emphasis on economics involving Belgium, the European
Union and the North Atlantic Treaty Organization (NATO), to posts
in Sri Lanka, Vietnam, Iran, London and Washington.
Ms. Schermerhorn holds a B.A. from Mount Holyoke College in South
Hadley, Massachusetts. She is a 1982 graduate of the National War
College, National Defense University in Fort McNair, Washington,
and obtained a certificate in Economics from the Foreign Service
Institute in 1974.
Ambassador Schermerhorn joins other Directors Quentin T. Kelly,
Joseph Cygler, Rolf Hafeli and Dr. Davinder Sethi. Two current
Directors, Dr. Martin Beyer and Dr. Russell Sturzebecker, are retiring
from the active Board but will remain as Emeritus Directors.
Shareholders attending the meeting and those voting by proxy also
ratified the appointment of Civale, Silvestri, Alfiere, Martin & Higgins,
LLC, as the Company's independent auditors.
WorldWater Corp. (http://www.worldwater.com)
is a full-service water management and solar engineering company
specializing in solving water problems through use of solar energy.
The Company produces and distributes the proprietary AquaSafe(TM) and
AquaMax 2200(TM) solar water pumps, capable of delivering
water in volumes from 5 gallons to more than 2000 gallons per minute.
This document may contain Statements which constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Act of 1995. “Forward-looking statements” include any
statement which is not of purely historical fact, such as statements
concerning plans, objectives, goals, strategies and future events
and underlying assumptions thereof. Such forward-looking statements
involve known and unknown risks, uncertainties expressed or implied
by such forward-looking statements to be materially different from
those projected. Such factors include, among other, general economic
and business conditions which may impact demand for the Company’s
solar generated pumps and electricity; changes in tax laws and
regulations; the ability of the Company to implement its marketing
strategy and to expand its business in the worldwide market; the
ability of the Company to build its production facility up to the
level of efficiency and output of its planned production; and changes
in laws and government regulations applicable to the Company, including
laws in foreign nations.
SOURCE: WorldWater Corp.
(OTC
BB:WWAT.OB - news) |
|
| WorldWater
Corp. CEO Sees Urgent Need for Reliable Clean Water And Electrical
Power Sources in Developing Nations Around the World — Tells
NYSSA Conference WorldWater Meeting Challenges With Low-Cost Solar
Systems |
| PENNINGTON, NJ, June
12 /PR NEWSWIRE/ |
WorldWater Corp. (OTC
BB:WWAT.OB - news), Chairman
and Chief Executive Officer Quentin T. Kelly told The New York
Society of Security Analysts 5th Annual Alternative Energy Conference
on Monday that “More than one billion people in the developing
world have no ready access to safe water and the need for reliable
sources has become so urgent that governments may rise and fall
based on solutions to the problem.”
He added that the United Nations estimates that $8 billion is
spent annually by governments and international agencies to provide
safe drinking water in developing countries and that $100 billion
will be required over the next five years.
“Sources for clean water are at a premium, particularly in
the poorer nations which do not have the financial resources and
technical means to generate new supplies,” Mr. Kelly said. “Growing
populations, famine and drought are exacerbating the problem in
many of these countries, leading to instability and political unrest.”
Mr. Kelly noted that WorldWater Corp. is meeting this challenge
as a full-service water management and solar engineering company
specializing in solar pumps and solar electrical systems that provide
clean water and electricity to users in developing countries around
the world. “We have low-cost solar pumps operating in 17 countries
around the globe,” Mr. Kelly said. “They are a viable
solution to providing clean water and electrical power to countries
plagued by a lack of financial resources to meet the needs of their
people.”
Mr. Kelly discussed how WorldWater Corp. meets these challenges. “WorldWater's
low-cost, low-maintenance solar pumps can deliver more than 2000
gallons per minute from rivers for irrigation or drinking water
from a depth down to 1,000 feet, four times the operating capability
of competing systems and deliver 5 to 260 gallons per minute for
household, village, or livestock drinking water,” Mr. Kelly
said. “Our community and residential solar power systems are
simple, clean, and reliable, providing cost-effective electricity
systems that include pre-wired control panels, solar batteries,
fluorescent lights and DC (direct current) outlet and plug for
appliances.”
Mr. Kelly said that WorldWater Corp. currently has solar pumping
and solar electrical systems operating in many countries, including
the Philippines, Sri Lanka, Pakistan, Ethiopia, Tanzania and Ecuador
and is negotiating projects in other developing nations. The Company
most recently was named by the government of Somalia to be the
East African country’s master consultant and contractor for
all water and energy programs.
Mr. Kelly also noted that in addition to providing critical services
to sustain life, solar water and electrical systems help to create
economic and political stability in many beleaguered nations.
The NYSSA’s Alternative Energy Conference was designed to
provide those attending an opportunity to listen to senior executives
from leading alternative energy companies discuss how they are
commercializing alternative energy sources such as distributed
power, solar power, fuel cells, photovoltaics and wind power. The
New York Society of Security Analysts, Inc. is a not-for-profit
educational organization whose twin goals are to inform and educate
investors and to advance the professional competence of investment
professionals including portfolio managers, security analysts,
investment advisors, and others involved in the investment process.
WorldWater Corp. (http://www.worldwater.com)
is a full-service water management and solar engineering company
specializing in solving water problems through use of solar energy.
The Company produces and distributes the proprietary AquaSafeTM and
AquaMax 2200TM solar water pumps, capable of delivering
water in volumes from 5 gallons to more than 2000 gallons per minute.
This document may contain Statements which constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Act of 1995. “Forward-looking statements” include any
statement which is not of purely historical fact, such as statements
concerning plans, objectives, goals, strategies and future events
and underlying assumptions thereof. Such forward-looking statements
involve known and unknown risks, uncertainties expressed or implied
by such forward-looking statements to be materially different from
those projected. Such factors include, among other, general economic
and business conditions which may impact demand for the Company’s
solar generated pumps and electricity; changes in tax laws and
regulations; the ability of the Company to implement its marketing
strategy and to expand its business in the worldwide market; the
ability of the Company to build its production facility up to the
level of efficiency and output of its planned production; and changes
in laws and government regulations applicable to the Company, including
laws in foreign nations.
SOURCE: WorldWater Corp.
(OTC
BB:WWAT.OB - news) |
|
| WorldWater
Corp. Chairman Quentin T. Kelly to Present at New York Society of
Security Analysts Alternative Energy Conference |
| PENNINGTON, NJ,May
31 /PR NEWSWIRE/ |
WorldWater Corp. (OTC
BB:WWAT.OB - news), announced
today that Chairman and Chief Executive Officer Quentin T. Kelly
will be presenting to the Alternative Energy Industry Conference
sponsored by The New York Society of Security Analysts, Inc.,
at One World Trade Center, 44th Floor, Suite 4447, in New York
City at 3:50 p.m. on Monday, June 11, 2001.
Mr. Kelly will give an overview of WorldWater Corp. and discuss
the Company’s goals and outlook in its role as a full-service
water management and solar engineering company specializing in
solar pumps and solar electrical systems to provide clean water
and electricity to users in developing countries around the world.
Mr. Kelly's presentation also can be heard in a live Webcast
that can be accessed at http://www.nyssa.org or http://www.ccbn.com.
Those wishing to attend Mr. Kelly’s presentation are requested
to register on The New York Society of Security Analysts, Inc.,
Web site at http://www.nyssa.org/events/alt_energy01.html.
The conference will provide those attending an opportunity to
listen to senior executives from leading alternative energy companies
discuss how they are commercializing alternative energy sources
such as distributed power, solar power, fuel cells, photovoltaics
and wind power.
WorldWater Corp. (http://www.worldwater.com)
is a full-service water management and solar engineering company
specializing in solving water problems through use of solar energy.
The Company produces and distributes the proprietary AquaSafeTM and
AquaMax 2200TM solar water pumps, capable of delivering
water in volumes from 5 gallons to more than 2000 gallons per minute.
This document may contain statements which constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Act of 1995. “Forward-looking statements” include any
statement which is not of purely historical fact, such as statements
concerning plans, objectives, goals, strategies and future events
and underlying assumptions thereof. Such forward-looking statements
involve known and unknown risks, uncertainties expressed or implied
by such forward-looking statements to be materially different from
those projected. Such factors include, among other, general economic
and business conditions which may impact demand for the Company’s
solar generated pumps and electricity; changes in tax laws and
regulations; the ability of the Company to implement its marketing
strategy and to expand its business in the worldwide market; the
ability of the Company to build its production facility up to the
level of efficiency and output of its planned production; and changes
in laws and government regulations applicable to the Company, including
laws in foreign nations.
SOURCE: WorldWater Corp.
(OTC
BB:WWAT.OB - news) |
|
| WORLDWATER
CORP (WWAT.OB) Quarterly Report (SEC form 10-Q) |
| PENNINGTON, NJ,May
15 /PR NEWSWIRE/ |
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF
OPERATIONS
Statements in this quarterly Report on Form 10-QSB concerning
the Company’s outlook or future economic performance; anticipated
profitability, gross billings, commissions and fees, expenses
or other financial items; and statements concerning assumptions
made or exceptions to any future events, conditions, performance
or other matter are “forward looking statements” as
that term is defined under the Federal Securities Laws. Forward
looking statements are subject to risks, uncertainties, and other
factors that could cause actual results to differ materially
from those stated in such statements. Such risks, uncertainties
and factors include, but are not limited to, (1) that there can
be no assurance that the Company will grow profitably or manage
its growth, (2) risks associated with acquisitions, (3) competition,
(4) the Company’s quarterly results have fluctuated in
the past and are expected to fluctuate in the future, (5) the
loss of services of key individuals which could have a material
adverse effect on the Company’s business, financial condition
or operating results and (6) risks associated with operating
in emerging countries.
OVERVIEW
WorldWater Corporation is a water and power solutions company that
provides proprietary solar pumping and lighting equipment, water
management and engineering assessments, and project financing
to governments and the private sector of emerging nations. The
Company fills a major infrastructural void by acting as contractor,
implementer, key equipment supplier and water/power manager for
rural communities, delivering clean water from deep wells and
rivers for drinking and irrigation with its proprietary solar
pumps and solar electrical systems. There are literally millions
of such targeted communities comprising WorldWater Corp.’s
international market. In mid-1997, the Company made its first
production shipment of its proprietary products (to the Philippines)
and has since begun limited operations in 16 emerging nations
in Asia, Latin America and Africa.
The mission of the Company is to be the leading provider of solar
powered water supply and electricity for emerging nations throughout
the world.
During the early stage of market penetration, marketing and related
costs invariably exceed revenues. WorldWater is unique among its
competition in that it does not merely solicit and await tendered
contracts from emerging market governments or international agencies,
but actively initiates projects by proposing rural water and power
solutions to key decision-makers at the highest government levels.
Once WorldWater obtains recognition and acceptance at the highest
levels, project development meetings are held with international
financing agency decision-makers and other national and local level
officials. After financing is in place, engineering assessment,
community preparation and equipment installation are effected,
leading to completion of turnkey programs. Management anticipates
that as target markets for its solar powered water pumping and
electric equipment become more fully developed, operating profits
will be achieved.
RESULTS OF OPERATIONS
REVENUE. For the three months ended March 31, 2001 revenue
decreased to $80,000 from $143,119 in the same period of 2000.
The primary reason for decreased revenue is due to a lack of equipment
sales in the first quarter of 2001. The Company continues to target
its sales efforts towards large contracts and is involved in ongoing
negotiations pending contracts with several countries including
the Philippines, Sri Lanka, Pakistan, Ethiopia and Somalia.
GROSS PROFIT. Gross profit of $31,724 was recognized for
the three months ended March 31, 2001, down from $60,912 for the
same period in 2000. Cost of sales for the three months was $48,276,
down from $82,207 from the previous period. The operating loss
was $411,600 for the three months in 2001 compared to an operating
loss of $281,987 for the same period in 2000.
MARKETING, GENERAL AND ADMINISTRATIVE. Marketing, general
and administrative expenses increased by $109,566 in the three
month period ending March 31, 2001 to $349,203, up from $239,637
in the same period of 2000. A portion of the increase can be attributed
to increased compensation expense incurred primarily to bring Officers
salaries gradually in line with the current job market. Rent expense
was also allocated entirely to Marketing, General and Administrative
as compared to being partially allocated to Production overhead
in the previous year. Additional insurance was purchased during
the third quarter of 2000, increasing insurance expense for the
first quarter of 2001 as compared to the same period in 2000. The
Company is maintaining its current staffing levels but has found
it necessary to hire consultants from time to time therefore increasing
this expense as compared to the same period in 2000. Assuming that
contract negotiations now underway are successfully concluded,
it will be necessary to recruit additional staff to implement the
contracts.
RESEARCH AND DEVELOPMENT. Research and development expenses
decreased slightly by $9,141 for the three-month period to $94,121,
down from $103,262 in the same period of 2000. The Company has
several water and solar products in various stages of research
and development. New products under development include: solar
water stations, solar drip irrigation systems and solar brackish
drip irrigation systems. The solar water stations will be a turnkey
water system that will house in one central location all needed
technology for the retail dispensing of safe drinking water to
the local populace who will pay by custom WorldWater debit cards
(“SmartCard”). The WorldWater solar drip irrigation system
is in development in collaboration with Rutgers University agro-engineers.
Concurrently, the solar drip irrigation system is being tested
in the field in a joint venture with Cumberland County College
for use with brackish water.
INCOME TAXES. The Company recognized no income tax expense
for 2001, and 2000 to date. The Company has net operating loss
carry-forwards resulting in a potential federal tax benefit to
the Company as of January 1, 2001 of approximately $9.2 million.
During 2000 the Company’s application to the New Jersey Division
of Taxation and the New Jersey Economic Development Authority to
sell its State of New Jersey Corporate Operating Losses was approved.
The new law was enacted January 1, 1999 and allows emerging technology
companies involved in research and development the opportunity
to sell their state loss carry-forwards and research and development
credits to profitable companies in the state for not less than
75% of their net tax value. The Company was able to sell its Net
Operating Losses for $163,887 in 2000 and $475,285 in 1999 and
plans to apply to sell its loss carry-forwards again in fiscal
year 2001.
LIQUIDITY AND CAPITAL RESOURCES
The Company’s cash and cash equivalents decreased by
$63,156 to $4,073 from December 31, 2000 to March 31, 2001. The
net cash used in operating activities during this three-month period
in 2001 was $275,433 compared to $529,561 in 2000. The primary
reason for the consumption of cash in the first quarter of 2001
was to fund on-going operations.
The Company was able to raise $91,000 from the exercise of Warrants
and approximately $21,000 from the exercise of options. The Company
was also able to enter into short term notes with individuals which
totaled approximately $95,500.
As of March 31, 2001, the Company was in arrears for dividends
payable to its Series A Preferred Stock shareholders in the amount
of $70,000.
SALE OF RESTRICTED SECURITIES DURING THE FIRST QUARTER 2001
The Company issued 318,750 restricted common stock shares for cash
proceeds totaling $91,000.
Part 2. Item 1 |
|
| WORLDWATER
CORP (WWAT.OB) Annual Report (SEC form 10KSB) |
| PENNINGTON, NJ, April
16 /PR NEWSWIRE/ |
Management's
Discussion and Analysis and Results of Operations
Certain statements contained in Management’s Discussion
and Analysis, and elsewhere in this annual report, concerning
the Company’s outlook or future economic performance such
as anticipated profitability, gross billings, commissions and
fees, expenses or other financial items; and conditions of performance
or other matters, are “forward looking statements” as
that term is defined under the Federal Securities Laws. Forward
looking statements are subject to risks, uncertainties, and other
factors which would cause actual results to differ materially
from those states in such statements. Such risks, uncertainties
and factors include, but are not limited to, the following: (1)
there can be no assurance that the Company will grow profitably
or manage its growth, (2) risk associated with acquisitions,
(3) competition, (4) the Company’s quarterly results have
fluctuated in the past and are expected to fluctuate in the future,
(5) the loss of services of key individuals which could have
a material adverse effect on the Company’s business, financial
condition or operating results, (6) risks associated with operating
in emerging countries.
Background
WorldWater Corporation is a water and power solutions company
that provides proprietary solar pumping and lighting equipment,
water management and engineering assessments, and project financing
to governments and the private sector of emerging nations.
Results of Operations
Year Ended December 31, 2000 (“Fiscal 2000”) Compared
to December 31, 1999 (“Fiscal 1999”)
The net revenues decreased to $279,531 from $526,924 in 1999 primarily
due the lower amount of grant revenue, $120,506 in 2000 as compared
to $373,527 in 1999. The Company continued to target its sales
efforts towards large contracts and is involved in ongoing negotiations
pending contracts with several countries (see Item 1(a) Major Customers).
Cost of sales for the year was $247,710, which reflects the fixed
overhead required to sell into an international market, while retaining
experienced solar industry engineers.
Research and Development expenses were $390,357 in 2000 compared
to $386,936 in 1999, reflecting a continuing effort to introduce
new technology and technological improvements into the Company’s
products (see Item 1(b) Products and Item 1(f) Research and Development)
while maintaining expenses.
FORM 10-KSB ANNUAL REPORT
Marketing, General and Administrative expenses were $1,578,582
in 2000, compared to $1,113,871 in 1999, an increase of 42%. A
portion of the increase can be attributed to compensation expense
allocated to Marketing, General and Administrative. This expense
was incurred primarily to bring Officers salaries gradually in
line with the current job market. Rent expense was also allocated
entirely to Marketing, General and Administrative as compared to
being partially distributed to Production overhead in previous
years. Directors and Officers Liability Insurance was purchased
in the year 2000 contributing to a $24,000 increase in insurance
expense. Legal and accounting expenses increased approximately
$20,000 primarily due to the incorporation of the subsidiary in
the Philippines. Travel and telephone expenses also contributed
to the increase as WorldWater employees traveled overseas to pursue
financing and negotiate pending contracts.
The Net Loss of $1,704,179 resulted partially from the marketing
process of proposing, presenting and demonstrating the Company’s
new technology to appropriate officials of developing countries
and the resultant lag time between agreements and annual budgeting
(see item 1(a) and (c)). The Company’s marketing efforts
with its successful feasibility studies was not able to secure
contracts in time to book revenues in 2000. Management continues
to focus its efforts on those countries among the emerging nations
which can assume financing arrangements offered through the Company’s
financing programs. Revenues are anticipated to begin in the second
half of 2001, after the appropriate hydrogeological and feasibility
studies are conducted, as a result of the contracts negotiated
in 2000.
Liquidity and Capital Resources
Net cash used by all activities in 2000 was $128,071 as compared
to net cash provided in 1999 of $191,138. The cash used in operating
activities was $1,897,726 compared to $834,504 in 1999. The increase
in Marketing, General and Administrative expenses (see Results
of Operations) and the paydown of accounts payable and some accrued
salaries are the primary reasons for the increased consumption
of cash. Accounts payable and other accrued expenses decreased
$254,511 as compared to an increase of $33,409 in 1999. Accrued
salaries decreased $72,550 as compared to $13,700 the previous
year.
Several debt holders converted their notes into common stock throughout
the year resulting in approximately $1,106,500 of debt and accrued
interest being converted. The Company was also able to raise approximately
$465,000 from the exercise of Warrants. In March the Company sold
1,111,056 shares of 7% Convertible Preferred Stock Placement (Series
A) through a private placement for $999,950 at the rate of $0.90
per share. In September another 7% Convertible Preferred Stock
Placement (Series B) totaling 611,111 shares with an investment
of $550,000 at the rate of $0.90 per share was placed. Also in
2000, an additional $200,000 was raised through a private equity
placement.
The Company paid no federal or state income taxes in 2000, and
ended the year with a federal net operating loss carryforward of
approximately $9,245,500.
During 2000 the Company’s application to the New Jersey
Division of Taxation and the New Jersey Economic Development Authority
to sell its State of New Jersey Corporate Net Operating Losses
was approved. The new law was enacted January 1, 1999 and allows
emerging technology companies involved in research and development
the opportunity to sell their state loss carryforwards and research
and development credits to profitable companies in the state for
not less than 75% of their net tax value. The Company was able
to sell its Net Operating Losses and Research and Development credits
for approximately $164,000. |
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