MEMPHIS, Tenn., April 16, 2012 (GLOBE NEWSWIRE) -- Dynamic Energy Alliance Corporation (OTCQB:DEAC) today announced fiscal year 2011 financial results. Full financial statements and corresponding commentary can be found in the Company's Form 10-K, which was filed with the Securities and Exchange Commission on April 16, 2012.
Financial Results for the Twelve Months ended December 31, 2011
Total revenue for the Company's fiscal year ended December 31, 2011 was $1,580,302, compared to no revenue reported during fiscal year 2010. The Company's revenue is attributable to fees generated from the Company's Transformation Consulting (TC) unit, which receives commission revenues through a management services agreement that was in place prior to the merger of the Company with Dynamic Energy Development, subsidiary.
The Company's Net Operating Income for the fiscal year ended December 31, 2011 was $180,948. Operating expenses for the fiscal year ended December 31, 2011 were $1,399,354, compared to no operating expenses reported during fiscal year 2010. The Company's 2011 operating expenses were comprised of $652,510 in general and administrative expenses; $408,506 for the engagement of consulting services related to due diligence and planning; and $338,338 in project development costs. Other expenses incurred during 2011 include $2,000,000 for impairment loss on intangible assets; financing charges of $1,624,052; and $45,300 in interest expense. The Company's net loss for the fiscal year ended December 31, 2011 was $3,503,904, or $0.06 per share, basic and fully diluted, based on the weighted average number of 64,218,655 Common shares outstanding.
2011 Highlights
- The Company acquired Dynamic Energy Development Corp. and began building its presence in the recoverable energy sector. James Michael Whitfield was named Chief Executive Officer and President in conjunction with the transaction
- The Company changed its name to Dynamic Energy Alliance Corporation and changes it fiscal year to calendar year from one ending August 31. Subsequently, the Company's ticker symbol changed to DEAC from MAMM
- Charles R. Cronin, Jr. was named Chairman
- Shareholders received a three for one split of their DEAC Common stock
- Management negotiated and transacted the conversion of more than $1,500,000 of debt into equity (restricted shares)
- Per its business plan, the Company identified and began discussions to acquire, or partner with the owners of, specific technologies related to the pyrolysis method of fuel extraction as it relates to the recovery of materials from abandoned tires
- The Company initiated discussions for the retention of expert due diligence and project planning resources, such as Jacobs Engineering, EcoSystems Environmental, Inc., Ventech Engineers, Inc. and TechNip USA, to assist it in its plans to build the first Pyrol Black Energy Campus.
"We're pleased with the direction our Company is taking; we've used 2011 to pursue relationships and technologies that we believe will be integral to the development of our first five million tire-per-year pyrolysis facility. The actions we've taken during the first quarter of 2012 have moved us much closer to our goal of transforming used and abandoned tires into oil, gas and carbon products," stated Charles R. Cronin, Jr., Chairman of Dynamic Energy Alliance Corporation. "During 2011, we solidified our business plan and made changes and additions to the corporate structure that have enabled us to more deeply and efficiently analyze appropriate technologies and opportunities, and we look forward to implementing our plans this year."
About Dynamic Energy Alliance Corporation
Dynamic Energy Alliance Corporation (DEAC), www.dynamicenergyalliance.com, is a development stage energy and recycling company focused on identifying, combining and enhancing existing technologies with proprietary recoverable production and finishing processes to produce synthetic oil, carbon black, gas, and carbon steel from waste feedstock. This process is expected to be accomplished with limited residual waste product and significant reductions in greenhouse gases compared to traditional processing. To maximize this opportunity, the Company has developed a scalable, commercial development strategy to build "Energy Campuses" with low operational costs and long-term, recurring revenues. The Company's management anticipates breaking ground on its next generation plant in summer 2012.
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Forward-Looking Safe Harbor Statement:
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions and current expectations about the future. We caution readers that any forward-looking statements are not guarantees of future performance and that actual results could differ materially from those contained or implied in the forward-looking statements. Such forward-looking statements include, but are not limited to, statements about the transactions described herein, future financial and operating results, the combined company's plans, objectives, expectations and intentions and other statements that are not historical facts. In some cases, you may identify forward-looking statements by words such as "may," "should," "plan," "intend," "potential," "continue," "believe," "expect," "predict," "anticipate" and "estimate," the negative of these words or other comparable words. These statements are only predictions. One should not place undue reliance on these forward-looking statements. The forward-looking statements are qualified by their terms and/or important factors, many of which are outside the Company's control, involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially from the statements made. The forward-looking statements are based on the Management's beliefs, assumptions and expectations about the Company's future performance and the future performance of its subsidiaries, taking into account information currently available to the Company. These beliefs, assumptions and expectations can change as a result of many possible events or factors not all of which are known to the Company. The Company will update this forward-looking information only to the extent required under applicable securities laws. Neither the Company nor any other person assumes responsibility for the accuracy or completeness of these forward-looking statements.
For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the Commission are available from commercial document retrieval services and at the website maintained by the Commission at www.sec.gov.
| DYNAMIC ENERGY ALLIANCE CORPORATION | ||||
| (Formerly MAMMATECH CORPORATION) | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| YEAR ENDED DECEMBER 31, | ||||
|
2011 |
2010 |
|||
| Revenue | $ 1,580,302 | $ -- | ||
| Expenses | ||||
| Project development costs | 338,338 | -- | ||
| Consulting services | 408,506 | -- | ||
| General and administrative expenses | 652,510 | -- | ||
| 1,399,354 | -- | |||
|
Net operating income |
180,948 |
-- |
||
| Other Expenses | ||||
| Impairment loss on intangibles | 2,000,000 | -- | ||
| Interest expense | 45,300 | -- | ||
| Financing charges | 1,624,052 | -- | ||
| Loss before provision for income tax | (3,488,404) | -- | ||
| Provision for income tax | (15,500) | -- | ||
|
Net Loss |
$ (3,503,904) |
$ -- |
||
| Basic and fully diluted loss per share | $ (0.06) | $ (0.00) | ||
|
Weighted average number of common shares outstanding – basic and diluted (Note 1 below) |
64,218,655 |
10,000 |
||
| (1) The capital accounts of the Company have been retroactively restated to reflect the equivalent number of common shares based on the exchange ratio of the merger transaction in determining the basic and diluted weighted average shares. | ||||
| DYNAMIC ENERGY ALLIANCE CORPORATION | ||||
| (Formerly MAMMATECH CORPORATION) | ||||
| CONSOLIDATED BALANCE SHEETS | ||||
| DECEMBER 31, | ||||
| 2011 | 2010 | |||
| ASSETS | ||||
| Current | ||||
| Cash | $ 7,652 | $ 3,955 | ||
| Total Assets | $ 7,652 | $ 3,955 | ||
| LIABILITIES | ||||
| Current | ||||
| Accounts payable and accrued expenses | $ 206,115 | $ 1,023,468 | ||
| Income taxes payable | 15,500 | -- | ||
| Loans payable to a related party | 89,584 | -- | ||
| Contingent consideration payable | 996,414 | -- | ||
| Convertible debentures payable | -- | 123,000 | ||
| Total Liabilities | 1,307,613 | 1,146,468 | ||
| STOCKHOLDERS' DEFICIT | ||||
| Common stock | ||||
| Authorized: | ||||
| Preferred stock, Series A convertible : 50,000,000 shares authorized, par value: $0.0001 (Note 1 below) | ||||
| Common stock: 300,000,000 shares authorized, par value: $0.0001 (Note 1 below) | ||||
|
Issued and Outstanding: Preferred stock: 7,732,824 shares (2010 - nil shares) |
773 | -- | ||
| Common stock: 81,304,504 shares (2010 - 10,000 shares) | 8,130 | 1 | ||
| Additional paid-in capital (Note 2 below) | 3,636,745 | 99 | ||
| Accumulated deficit | (4,945,609) | (1,142,613) | ||
| Total Stockholders' Deficit | (1,299,961) | (1,142,513) | ||
| Total Liabilities and Stockholders' Deficit | $ 7,652 | $ 3,955 | ||
| (1) The capital accounts of the Company have been retroactively restated to reflect the equivalent number of common shares based on the exchange ratio of the merger transaction in determining the basic and diluted weighted average shares. | ||||
| (2) The March 9, 2011 capital accounts of the Company have been retroactively restated to reflect the equivalent number of common shares based on the exchange ratio of the merger transaction. | ||||