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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Alternative E. | LSE:ALR | London | Ordinary Share | SG9999004659 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.0125 | 0.00 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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
Hot Features
Premium
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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