UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

 


 

FORM 10-K 

 


(Mark One)

 

☒  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the year ended: December 31, 2018

 

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ____________________ to ____________________

 

Commission file number: 000-53557

 

CLEAN COAL TECHNOLOGIES, INC.

(Exact name of small business issuer as specified in its charter)

 

NEVADA

26-1079442

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

 

295 Madison Avenue (12th Floor), New York, NY

10017

(Address of principal executive offices)

(Zip Code)

(646) 710-3549

(Issuer’s telephone number)

 

Securities registered pursuant to Section 12(b) of the Exchange Act:

 

Title of each class

Name of each exchange on which registered

None

N/A

 

Securities registered pursuant to Section 12(g) of the Exchange Act:

 

Title of class

Common Stock

 

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES  ☐  NO  ☒

 

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. YES  ☐  NO  ☒

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES  ☒  NO  ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   YES  ☒   NO  ☐

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ☐

  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐

Accelerated filer  ☐

Non-accelerated filer  ☐

Smaller reporting company  ☒

 Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected to not use the extended transition period for complying with any new or revisited financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. YES  ☐  NO  ☒

 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES  ☐  NO  ☒

 

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second quarter.

 

The market value of the voting and non-voting common stock is $11,802,561 based on 118,025,611 shares held by non-affiliates. The shares were valued at $0.10 per share, that being the closing price on June 30, 2018, the last business day of the registrant’s most recently completed second quarter.

  

As of December 31, 2018 the total number of outstanding common shares was 174,427,854 and as of March 7, 2019 the total number was 174,427,854.

 

Documents Incorporated by Reference

 

None.

 

 

 

 

 

CLEAN COAL TECHNOLOGIES, INC.

2018 ANNUAL REPORT ON FORM 10-K

 

TABLE OF CONTENTS

 

 

 

Page

PART I

 

 

ITEM 1.

BUSINESS

1

ITEM 1A.

RISK FACTORS

11

ITEM 1B.

UNRESOLVED STAFF COMMENTS

14

ITEM 2.

PROPERTIES

14

ITEM 3.

LEGAL PROCEEDINGS

14

 

 

PART II

 

 

ITEM 5.

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

15

ITEM 6.

SELECTED FINANCIAL DATA

16

ITEM 7.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

16

ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

19

ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

20

ITEM 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

39

ITEM 9A.

CONTROLS AND PROCEDURES

39

 

 

PART III

 

 

ITEM 10.

DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

40

ITEM 11.

EXECUTIVE COMPENSATION

44

ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

48

ITEM 13.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

48

ITEM 14.

PRINCIPAL ACCOUNTING FEES AND SERVICES

49

 

 

PART IV

 

 

ITEM 15.

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

50

 

 

 

Table of Contents

 

PART I

 

ITEM 1. BUSINESS

 

Forward-Looking and Cautionary Statements

 

Except for statements of historical fact, certain information in this document contains “forward-looking statements” that involve substantial risks and uncertainties. You can identify these statements by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “would,” or similar words. The statements that contain these or similar words should be read carefully because these statements discuss our future expectations, contain projections of our future results of operations, or of our financial position, or state other “forward-looking” information. Clean Coal believes that it is important to communicate our future expectations to our investors. However, there may be events in the future that we are not able to accurately predict or control. Further, we urge you to be cautious of the forward-looking statements that are contained in this Annual Report because they involve risks, uncertainties and other factors affecting our technology, planned operations, market growth, products and licenses. These factors may cause our actual results and achievements, whether expressed or implied, to differ materially from the expectations we describe in our forward-looking statements. The occurrence of any of these events could have a material adverse effect on our business, results of operations and financial position.

 

Overview 

 

Over the past decade, Clean Coal Technologies, Inc. has developed processes that address what we believe are the key technology priorities of the global coal industry. We currently have three processes in our intellectual property portfolio:

 

The original process, called Pristine, is designed to remove moisture and volatile matter, rendering a high-efficiency, cleaner thermal coal.  The process has been tested successfully on bituminous and subbituminous coals, and lignite from various parts of the United States and from numerous countries around the world.

 

Our second process, called Pristine-M, is a low-cost coal dehydration technology. In tests, this process has succeeded in drying coal economically and stabilizing it using volatile matter released by the feed coal. Construction of our coal testing plant was completed in December 2015 and was successfully tested through April 2016 at AES Coal Power Utility in Oklahoma. Additional tests commenced and were completed in the fourth quarter of 2017. This test facility has been moved from AES to Wyoming. Working in partnership with the University of Wyoming and our engineers a number of enhancements to the existing test facility were identified. These additional changes are being built and we expect the assembly of the second generation facility to be completed by the second quarter of 2019 to commence testing of international coal in the third quarter of 2019. These additional changes are expected to further increase the Btu of the processed coal in excess of what the company obtained from the first generation facility and reduce the cost of a commercial unit. It will also enable the automated extraction of by-products from the coal for research and testing.

 

Our third process, called Pristine-SA, is designed to eliminate 100% of the volatile matter in the feed coal and to achieve stable combustion by co-firing it with biomass or natural gas.  The process is expected to produce a cleaner fuel that eliminates the need for emissions scrubbers and the corollary production of toxic coal ash.  We anticipate that treated coal that is co-fired with other energy resources will burn as clean as natural gas.

 

Anticipated Benefits of the Technology:

 

•     Reduction of undesired emissions and greenhouse gases through the removal of compounds that are not required for combustion in conventional boilers.

 

•     Cost savings and environmental impact reduction. Our pre-combustion solution is expected to be significantly less expensive than post-combustion solutions such as emissions scrubbers.  Not only are the latter prohibitively expensive, they produce coal ash containing the “scrubbed” compounds, which is dumped in toxic waste disposal sites where it may pose continuing environmental risk.  Coal treated using our processes may eliminate the need for post-combustion emissions scrubbers and the resulting toxic ash.

 

•     Potential use of compounds removed from treated coal. Volatile matter captured in the Pristine process is removed in the form of hydrocarbon liquids that we believe will be easily blended with crude oil or used as feedstock for various products.  For example, sulfur, which can be removed using the Pristine process, is a basic feedstock for fertilizer.  The harvesting of hydrocarbon liquids from abundant, cheaper coal is a potentially lucrative side benefit of our processes.

 

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Successful testing of the Pristine M process resulted in an increase in BTU of the processed coal and a reduction in moisture content making it less expensive to transport (as moisture has been removed) with the end product being a dust free stabilized enhanced coal which we believe will address the issue of coal dust pollution during transportation.

 

•     Energy Independence.  To the extent that volatile matter is removed from coal, coal’s use as an energy resource is greatly improved, enabling the United States and other coal-rich countries to move towards energy independence owing to coal’s greater abundance.

 

Development Status: 

 

Pristine process. Pristine process successfully lab tested on small scale and through advanced computer modeling. As at February, 2018, various aspects of the Pristine process has been successfully tested at our test facility at the AES coal Power plant in Oklahoma as part of the overall testing of Pristine M. More detailed testing is expected from the second generation test facility following assembly in Wyoming.

 

Pristine-M. Testing of the Pristine M process on Powder River Basin coal at the AES facility in Oklahoma was completed in December 2017. The Pristine M process was successfully tested and the process, engineering and science were independently proven. The test facility was moved from the AES location to Wyoming where assembly of the second generation test facility will commence in the second quarter of 2019 and testing of international coal is expected in third quarter of 2019.

 

Pristine-SA process. Pristine SA process analysis is at a very early stage. Further research and development is expected using the test facility at its permanent location in Wyoming upon assembly of the second generation facility in the second quarter of 2019.

 

Business Outlook

 

•     Wyoming New Power, a related party company, has agreed to sign a two million ton per annum license agreement to use Pristine M at a location in Wyoming. They have paid a non-refundable $100,000 deposit on the license agreement. The definitive license agreement is expected to be signed within 30 days of their receipt of a commercial design that they are working on with their EPC contractor. The agreement is expected to be completed in the second or third quarter of 2019. Wyoming New Power is a Related Party because it is controlled by a party that also controls the entity, which is the major lender and significant stockholder of the Company.

 

•     Jindal Steel & Power is expected to begin discussions with the Company to contract a commercial plant in in the second or third quarter of 2019, subject to a favorable outcome of the testing of its coal at our test facility which is expected to occur immediately following its reassembly in Wyoming. A bespoke commercial facility design will be undertaken after Jindals coal has been tested.

 

•     The Company entered into a partnership with the University of Wyoming with the objective of using our suite of technologies to increase the use of and value of Wyoming Powder River Basin coal. The primary focus is on utilizing our technology to extract valuable derivative products from coal. The university spent most of 2018 working with our engineers to streamline our original test facility design in order to optimize the processed coal. The second generation test facility will enable the automatic extraction of byproducts including rare earth minerals, which will underpin further research on byproduct extraction.

 

•     The Company has been engaged with AusTrade (The Australian Trade and Investment Commission) and through that relationship has partnered with three separate universities in Australia. Like the University of Wyoming these Universities have a focus on their local coal both from a beneficiation perspective and also to extract derivative byproducts from coal using our technology.

 

•     The Company met with and has engaged in discussions with the Minister for Coal in India and Coal India Limited, a government-owned coal mining company. As at March 2019 they are awaiting the assembly of the second generation test facility so they can send coal to Wyoming for testing.

 

•     The company continues negotiations with a number of the senior management of some of the largest Energy companies in India, Russia and Indonesia. As at March 2019 we continue to advance commercial terms with these parties. Upon completion of the reassembly of the test facility in Wyoming arrangements are being made for these companies to send 500 tons of their coal each to the facility for testing. This is expected in the second or third quarter of 2019. We are also closely watching the Indonesian national elections scheduled for April 2019 which could result in a more positive approach to coal production and usage in their country.

 

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•     Discussions continue with the US DOE and DOD to further our technology to benefit US coal.

 

Technology

 

Our original Pristine coal treating process extracts the volatile matter (solidified gases or pollutant material) from a wide variety of coal types by heating the mineral as it transitions through several disparate heat chambers, causing the volatile matter to turn to gas and escape the coal, leaving behind a cleaner-burning fuel source. Historically, the primary technological challenge of extracting this volatile matter has been maintaining the structural and chemical integrity of the carbon, while achieving enough heat to turn the volatile matter into a gaseous state. Heating coal to temperatures well in excess of 700° Fahrenheit is necessary to quickly turn volatile matter gaseous. However, heating coal to these temperatures has generally caused the carbon in the coal to disintegrate into an unusable fine powder (coal dusting). Our patented flow process transitions the coal through several atmospherically independent heat chambers controlled at increasingly higher temperatures. These heat chambers are infused with inert gases, primarily carbon dioxide (CO2), preventing the carbon from combusting. We have identified the optimum combination of atmospheres, levels of inert gases, transport speed, and temperatures necessary to quickly extract and capture volatile matter, while maintaining the structural and chemical integrity of the coal. Using our technology, we are able to capture the volatile gases that escape the coal, and to utilize some of these gases to fuel the process, while others are captured in the form of usable byproducts, to potentially provide an ancillary revenue stream. Depending on the characteristics of the coal being cleaned, the flow processing time is expected to be in the range of 6 to 8 minutes. 

 

Our process derivatives are broadly characterized by the following three elements which vary according to the   characteristics of the feed coal: 

 

A first stream is predominantly water that is extracted from the coal. Although expected to be 100% pure (water removed from coal is condensed from its vapor state), it may contain some contaminants.

 

A second stream, produced in the de-volatizing stage of the process, is the condensed light hydrocarbons gases that we call “coal-derived liquids”, or CDLs. These could prove to be the most valuable component of the process. It is anticipated that the CDLs will resemble a crude oil (probably sweet crude if the sulfur content of the feed coal is low) resulting in a readily-marketable product. In the Pristine-M process, de-volatization is controlled and optimized to meet the needs of drying and stabilizing the coal, minimizing the production of gas or liquid byproducts. 

 

The third stream is the heavy tar-like liquid potentially marketable to the asphalt and coal tar industry.  This stream is entirely absent in the Pristine-M process which is focused only on the task of drying and stabilizing.

 

The Pristine technology has three distinct primary applications: the cleaning of coal for direct use as fuel for power stations and other industrial and commercial applications; the extraction of potentially valuable chemical by-products for commercial sale; and the use of processed coal as a feed stock for gasification and liquefaction (CTG & CTL) projects.

 

Pristine-M De-Watering Process. During the fourth quarter of 2011, the Company filed a provisional patent application for a new technology focused on the de-watering of coal.  The new process, Pristine-M, is unique in that it retains elements of the original process but has discovered a technology that stabilizes the dried coal, rendering it impermeable and easy to transport with low to no risk of spontaneous combustion.  The latter results have proved elusive for the majority of companies that have entered the market with coal de-watering technologies.

 

The Pristine-M process, sharing some of the scientific principles and engineering components that underpin the Pristine process, is also a modular design that includes a section where the coal is partially de-volatized and then coupled to as many drying and stabilization modules as may be required to achieve a client’s desired level of production. Each of the modules is designed to handle 30-tons/hr and, similar to the Pristine process, relies on components that are primarily available off-the-shelf and have already stood the test of time as to their reliability and durability.

 

Pristine-SA Process. In June 2013, we filed a provisional patent application for a new process to be called Pristine-SA. The new process is designed to produce a coal product that is devoid of all volatiles and comes together with a solution for ensuring efficient and clean combustion on a level with natural gas. Now that the application on the basic concept has been filed, we expect to continue further research and development to address Pristine-SA’s potential application in various fuel and non-fuel product areas.

 

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Our technology has been tested and proven under laboratory and pilot scale conditions in Pittsburg, PA, and the results studied by LEIDOS (previously SAIC) as well as certain potential strategic partners as part of their due diligence on CCTI and the CCTI technology.   To date, testing of about 40 coal types from all over the world has been completed.  We have also benchmarked our technology against the Carnegie Mellon simulation model with excellent results. Testing has shown no evidence of coal dusting, self-combustion, moisture re-absorption, or other technical concerns that might hinder commercialization. As at December 2017 we have successfully tested Powder River Basin coal at out testing facility at AES Oklahoma. The test facility was moved to Wyoming where assembly of the second generation test facility is expected in the second quarter of 2019.

 

While we believe that all of our Pristine technologies offer vast potential for commercialization, our market entry strategy right now is focused on the Pristine -M technology that we believe offers an immediate opportunity to monetize our intellectual property. The specific opportunity is in Asia that, at the moment, is focused almost entirely on the need to produce a dry and stable coal to meet the growing need of coal-fired power plants.  Indonesia is currently one of the largest suppliers of thermal coal to India and China, but Indonesian coal suffers from its high moisture content and low calorific content. Since January 2017 we have engaged in advanced discussions with the representatives from the US DOE and also key representatives from Wyoming. As we successfully tested PRB at our test facility at AES it has led to a unique opportunity to upgrade PRB coal and export it through several ports in the US and also from Canadian and Mexican ports.  Since our successful tests at AES coal power utility we believe that the issues currently facing the upgrading of coal and its stabilization have been effectively addressed by the Pristine-M technology and we continue to work with both US government bodies and US producers along with key international energy providers. 

 

Initial designs have been completed for both the Pristine and the Pristine-M processes.  The Pristine design provides for the deployment of standard operational modules, each with annual capacity of 166,000 metric tons, providing the flexibility to be configured in accordance with customers’ individual production capacity requirements. The coal cleaning process will typically be energy self-sufficient, relying upon captured methane and other byproducts to fuel the coal cleaning process. Since the first quarter of 2017 Kiewit Engineering group have been employed to further enhance the process and update the commercial designs that were previously produced. Following nine months of work with the University of Wyoming and our engineers we have identified changes to the original test facility that is expected to further increase the beneficiated processed coal.

 

Business Activities and Strategy 

 

The Company’s business model at this stage is simple: to license our technology to third parties and exact a license fee, as well as a royalty fee, based on plant production. Over time, as the company builds up equity capital and cash reserves, opportunities to penetrate the coal business at different points of the value chain will be considered.  Among these, direct investments in low-cost reserves, partnerships in mining or industrial projects, or trading may be contemplated.

 

Research and development will be a key focus going forward.  The highest priority will be on the commercialization of our Pristine M process, but there are various other product areas including biomass where our technology may prove relevant.

 

Competitive Strengths 

 

We believe our technology and designs represent the only process that can effectively separate and capture undesired chemical compounds prior to carbon combustion in a commercially viable manner. Our process differs from competing processes through its ability to maintain the structural integrity of coal during the heating process. This is achieved through a unique design that inserts inert gas into the heating chambers, and maintains the inert atmosphere in each chamber. By inserting an inert gas into the chambers, the process allows for rapid heating of the coal and prevents coal combustion and significant coal dusting. Competing technologies have used differing methods of preventing coal combustion and dusting, albeit with limited success. Some of the particular strengths of our process include: 

 

Pollution reduction: By heating coal prior to combustion, we are able to extract volatile matter (pollutants in the form of solidified gases) from the coal in a controlled environment, transforming coal with high levels of impurities, contaminants and other polluting elements into a more efficient, cleaner source of high energy, lower polluting fuel. Testing has demonstrated that our process removes a substantial percentage of harmful pollutants, including mercury.

 

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Lower cost of operation: We believe that our process will be a relatively low-cost solution to the reduction of pollution at coal-fired power facilities. Our engineering consulting firm, believes that our coal cleaning process will typically not require any external energy and can be fully fueled by the methane and other byproducts that the process captures from raw coal. This effective use of byproducts contrasts markedly with emissions scrubbers that generally use a portion of the generated power and have high initial capital and maintenance costs. In addition, our process may have certain advantages in terms of the pollutants removed that can be utilized in a complementary manner with other processes including scrubbers.

 

Increased flexibility in feedstock: Our process eliminates both the moisture and volatile matter in raw coal, increasing the heat capacity of standard sub-bituminous low-rank raw coal from approximately 8,800 BTUs to between 11,000-12,000 BTUs. We believe the process can increase heat capacity of lignite raw coal ranging from 4,000-7,000 BTUs to a range of 9,000-10,000 BTUs. As the worldwide supply of high-BTU bituminous coal dwindles, our technology may enable coal-fired plants to effectively utilize the abundance of low-rank coal. Results will differ depending on the coal being processed.

 

Favorable price arbitrage: Low-rank coal in Asia with a heat content of 7,000 – 9,000 BTUs currently sells for at a significant discount to high-BTU bituminous coal with a heat capacity of 10,000+ BTUs, as can be observed in various international price indices, among them, the Baltic Dry Bulk Index. Our process essentially transforms low-grade coal into bituminous coal at a direct operating cost of an estimated $3.50 per ton, capturing the value of higher-grade coal prices.

 

Potential tax benefits: This will be clearer under the new US Administration and the new laws being passed

 

Competition

 

At this filing, the coal upgrade industry globally, excluding coking processes, remains in its infancy.  The penetration rate of technologies focused on de-watering coal is well under 1% based on annual production of thermal coals measured in the billions of tons.  There are numerous competitors in the pre-combustion, upgrade segment but many of these have failed, are inactive, or in pilot mode.  The Company believes that given its successful testing of its Pristine M process it will be able to enjoy early-mover advantage in 2019.

 

The difficulties experienced by the Company’s competitors fall into three categories: the technologies have failed to scale up; they are expensive and, therefore, challenge the economics of the process; or they have failed to produce a stable end product, that is, a product that does not reabsorb moisture and is safe to transport with minimal risk of spontaneous combustion. From a scale-up perspective, CCTI’s Pristine M technology faces a much smaller challenge as it is a modular system built around well-known and proven components. From our 2-ton per hour prototype to our 30-ton per hour standard commercial module, initial scale-up is a 1:15 proposition that is considered very modest from an engineering perspective.  Scalability issues are mitigated by the modular nature of the industrial design that, once the basic module is operational, further scale up is achieved by adding identical modules. We consider it a major competitive advantage that our clients who build large capacity, single-unit plants based on what are likely to be new and untested components.

 

From a plant reliability and maintenance perspective, our modular design brings many advantages that the Company believes enhance the competitiveness of its offering.  The major benefits are the ability to carry on maintenance on one module while the other modules continue to operate. Down-time can be minimized. Similarly, if a component breaks down, it does not incapacitate the entire plant. It is localized to a single module.

 

From a planning perspective, mine operators would be able to expand their capacity piecemeal rather than in step-wise fashion by large-scale increments.  This mitigates much of the financial risk normally attendant on large-scale plant expansions and, over time, our modular design may prove to be one of the most significant competitive advantages of our process.

 

Another significant competitive advantage of either of the Company’s processes is that these do not require crushing of the coal, thereby minimizing if not entirely eliminating the need for costly briquetting.  CCTI’s plant economics are compelling as they derive much of the process heat from the feed coal itself, rendering the processes very energy efficient.  The processes require a modest amount of electric power and a small number of operatives.  Consequently, our operating costs are very competitive.

 

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The Pristine process not only removes the moisture, but also removes undesired volatiles which we capture as a chemical “soup” that may be further refined by us, or sold directly to chemical manufacturers, or refineries as a complementary revenue source. The Pristine process addresses a very different market need than the Pristine M Technology and therefore enables CCTI to offer a more diverse product slate to our potential customers than most, if not all, our existing competitor base.

 

We consider our most direct competition in the reduction of coal emissions comes from companies offering pre-combustion cleaning designed to remove impurities.  However, post-combustion filtering or “scrubbers” designed to filter released gases are a clear alternative for coal-fired power producers.  We are not in competition with suppliers of emissions scrubbers, except to the extent that that burning a cleaner fuel is more economical than post-combustion solutions.

 

The best known present and past competitors in the pre-combustion area include Evergreen Energy, Inc. (“Evergreen”), Kobe Steel (“Kobe”), GTL Energy (“GTL”) and White Energy (“White Energy”), both the latter of which are Australian companies. Neither Encoal or SynCoal are currently operational having experienced serious problem in the area of product stability. There are operators that utilize older, less efficient technologies such as the Fleissner process, but these are not as effective the newer technologies.  Evergreen, based in Denver, Colorado, developed a technology primarily focused on reducing the moisture in raw coal to increase its heating capacity. The company declared bankruptcy in 2012 after suffering problems having to do with the stability of the end product. CoalTek, based in Tucker, Georgia, claims its patent-pending process uses electromagnetic energy to reduce contaminants and moisture in coal prior to combustion. While public information is limited, we believe the amount of energy necessary to run the electromagnetic process may offset any economic benefits of the upgraded coal. The Australian processes use a combination of heat and compaction to remove moisture from coal. The company is not in commercial mode.  White Energy claims that compaction generates close bonding between the dried coal particles to form a high density, higher energy content briquette. Energy requirements for heating coal an operating a pelletizer are typically large but no basis or explanation is provided for the favorable cost numbers published by White Energy. During 2012, White Energy was forced to abandon further investment in its flagship 1 million ton facility in Indonesia that suffered serious operational problems. The Kobe process is proven.  However, the plant is complex and, consequently, very expensive.  This was indicated by the fact a one significant plant in Indonesia shuttered a Kobe plant during 2012 owing to unfavorable process economics.

 

Indirect competition comes from alternative low-pollution energy sources, including: wind, bio-fuels and solar; all of which need additional technological advancements, cost reduction and universal acceptance to be able to produce power at the scale of coal-fueled plants, which today produce over 40% of world’s electricity according to U.S. Department of Energy.

 

Patents

 

Our technology is the subject of U.S. patent #6,447,559, “Treatment of Coal” which was filed on November 3, 2000 based on provisional application 60/163,566 filed November 5, 1999, and issued in 2002. The patent expires in 2020. We also filed PCT international patent application PCT/US00/41772 based on this U.S. patent on November 2, 2000, and, in accordance with this, patents have been applied for in all countries where we believe our technology has application. On February 1, 2011 CCTI was awarded a continuation patent US #7,879,117.

 

On April 15, 2008, the Company filed a PCT International application PCT/US2008/060364based on our revised design, and national patent applications based on this PCT International application have been filed in India, China, Indonesia, Australia, South Africa, Colombia, Brazil, Chile, and the Republic of Mongolia. These were filed by our patent attorneys Nixon &Vanderhye P.C. at a cost of $33,000. On October 15, 2010, the Company filed the PCT US national phase application for its revised design as contained in PCT/US2008/060364.

 

The April 15, 2008 application details the process of using byproducts to power the process, and details a simpler, vertical factory design with proprietary seals that help preserve the atmosphere of each chamber, compared to a horizontal design in the original filing. This application goes into great detail regarding the byproducts of the coal and their capture.

 

The patent details a process wherein coal is heated to different temperatures in various chambers with controlled low-oxygen atmospheres. There are seals between these chambers, serving to maintain the heat and gas content in each chamber. The invention notes the controlled de-volatilization and removal of moisture and organic volatiles, while maintaining the structural integrity of the coal and reducing the level of disintegration into powder form. The invention also notes the significantly decreased time in treating coal as compared to alternative approaches, most of which focus on moisture removal as a means of increasing calorific or BTU value.

 

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In September, 2011, the Company filed provisional patent application Serial No. 61/531,791 that seeks to protect a new invention for the reduction of moisture inherent in coal, and stabilization of the final product.  A corresponding PCT International application PCT/US2012/054160 was filed in September, 2012 and counterpart national patent applications have been filed in US, EP, Eurasia, Australia, Canada, India, Philippines, South Africa, Colombia, Mexico, Panama, Japan, South Korea, Indonesia Mongolia, Malaysia, Sri Lanka. Testing to date indicates that our stabilized product will be resistant to moisture re-absorption and safe to handle, even over long distances.  The new invention draws from the scientific knowledge embedded in our existing patent, but it is an entirely new concept that is easily differentiated from the offerings of our competitors.  The most novel aspect relates to the stabilization of the end product and to the ability to enhance the heat content of the coal beyond what would be normally achieved by moisture removal alone.  The product is banded Pristine–M.

 

From a commercial perspective, Pristine-M is proving to be attractive to clients not only because of its characteristics, but because the industrial design is simple, elegant and inexpensive.  We estimate that operating costs based on US labor rates is $3.50 per to which includes $2.00 per ton on-going maintenance.  The cost of the commercial plant is expected to be highly competitive, based on preliminary estimates. Changes being incorporated to the second generation test facility is expected to reduce the capital cost of a commercial unit.

 

A new provisional patent application Serial No. 61/829,006 was filed by the Company in May, 2013 directed to the treatment of coal. Counterpart foreign patents has been filed based on that technology. In the second quarter of 2013, we filed a provisional patent application for a new process to be called Pristine-SA. The new process is designed to produce a coal product that is devoid of all volatiles and comes together with a solution for ensuring efficient and clean combustion on a level with natural gas. Now that the application on the basic concept has been filed, we expect to continue further research and development to address Pristine-SA’s potential application in various fuel and non-fuel product areas.

 

We expect to file for additional patents as we continue the commercialization of our technology and factory design. We intend to continue to seek worldwide protection for all our technology. The following table provides a summary of our technology to date.

 

COUNTRY

APPLN NO

APPLN DATE

GRANT DATE

STATUS

CHIN - (China P.R.)

00818174.8

11/02/2000

02/03/2016

G - (Granted)

USA - (United States)

09/704,738

11/03/2000

09/10/2002

G - (Granted)

CANA - (Canada)

2,389,970

11/02/2000

03/27/2012

G - (Granted)

EPC - (European Patent Convention)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

TURK - (Turkey)

2002/01914

11/02/2000

06/21/2005

I - (Inactive)

PCT - (Patent Cooperation Treaty)

PCT/US2008/060364

04/15/2008

 

I - (Inactive)

INDO - (Indonesia)

W-00200201274

11/02/2000

 

F - (Pending)

USA - (United States)

11/344,179

02/01/2006

02/01/2011

G - (Granted)

HONG - (Hong Kong)

03107833.3

10/30/2003

 

I - (Inactive)

USA - (United States)

12/926,944

12/20/2010

 

I - (Inactive)

INDI - (India)

7426/DELNP/2010

04/15/2008

02/15/2016

G - (Granted)

CHIN - (China P.R.)

200880129212.2

04/15/2008

12/25/2013

G - (Granted)

INDO - (Indonesia)

W00201003932

04/15/2008

 

F - (Pending)

ASTL - (Australia)

2008354703

04/15/2008

 

I - (Inactive)

SAFR - (South Africa)

2010/07455

04/15/2008

04/25/2012

G - (Granted)

COLO - (Colombia)

10-142509

04/15/2008

11/24/2017

G - (Granted)

BRAZ - (Brazil)

PI0822577-0

04/15/2008

08/15/2017

G - (Granted)

CHIL - (Chile)

01145-2010

10/19/2010

01/05/2017

G - (Granted)

MONG - (Mongolia)

4510

04/15/2008

10/25/2010

G - (Granted)

USA - (United States)

12/736,535

04/15/2008

 

I - (Inactive)

CHIN - (China P.R.)

201110142494.3

11/02/2000

10/14/2015

G - (Granted)

USA - (United States)

61/531,791

09/07/2011

 

I - (Inactive)

HONG - (Hong Kong)

11110274.3

09/29/2011

08/15/2014

G - (Granted)

 

7

Table of Contents

 

HONG - (Hong Kong)

12102379.3

03/08/2012

10/21/2016

G - (Granted)

PCT - (Patent Cooperation Treaty)

PCT/US2012/054160

09/07/2012

 

I - (Inactive)

EPC - (European Patent Convention)

13153292.1

01/30/2013

 

F - (Pending)

USA - (United States)

61/829,006

05/30/2013

 

I - (Inactive)

USA - (United States)

13/940,026

07/11/2013

 

I - (Inactive)

ALBA - (Albania)

AL//P/2013/0342

11/02/2000

10/02/2013

G - (Granted)

ATRA - (Austria)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

CYPR - (Cyprus)

CY20131101169

11/02/2000

10/02/2013

G - (Granted)

GERM - (Germany)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

SPAI - (Spain)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

GBRI - (Great Britain)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

GREC - (Greece)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

IREL - (Ireland)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

ITAL - (Italy)

502013902221416

11/02/2000

10/02/2013

G - (Granted)

LATV - (Latvia)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

MACE - (Macedonia)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

PORT - (Portugal)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

ROMA - (Romania)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

SWED - (Sweden)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

SLOV - (Slovenia)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

TURK - (Turkey)

00992027.3

11/02/2000

10/02/2013

G - (Granted)

USA - (United States)

14/282,558

05/20/2014

10/25/2016

G - (Granted)

EPC - (European Patent Convention)

12845210.9

09/07/2012

 

F - (Pending)

EURA - (Eurasian Patent Convention)

201490565

09/07/2012

07/31/2017

G - (Granted)

ASTL - (Australia)

2012333101

09/07/2012

10/27/2016

G - (Granted)

CANA - (Canada)

2,848,068

09/07/2012

 

F - (Pending)

INDI - (India)

1722/DELNP/2014

09/07/2012

 

F - (Pending)

PHIL - (Philippines)

1-2014-500512

09/07/2012

 

F - (Pending)

USA - (United States)

14/343,568

09/07/2011

 

F - (Pending)

SAFR - (South Africa)

2014/02154

09/07/2012

 06/28/2017

G - (Granted)

COLO - (Colombia)

14068729

09/07/2012

11/23/2015

G - (Granted)

MEXI - (Mexico)

MX/a/2014/002717

09/07/2012

 10/18/2018

G - (Granted)

PANA - (Panama)

90134-01

09/07/2012

 

F - (Pending)

JAPA - (Japan)

2014-529896

09/07/2012

12/05/2017

G - (Granted)

KORS - (Republic of Korea)

10-2014-7008281

09/07/2012

 

F - (Pending)

INDO - (Indonesia)

P00201401962

09/07/2012

 

F - (Pending)

MONG - (Mongolia)

5304

03/25/2014

04/09/2015

G - (Granted)

MAYS - (Malaysia)

PI2014000646

09/07/2012

 

F - (Pending)

SRIL - (Sri Lanka)

17613

09/07/2012

02/26/2015

G - (Granted)

AU – (Australia)

2018282423

12/20/2018

 

F - (Pending)

HONG - (Hong Kong)

15100135.9

01/07/2015

 

F - (Pending)

ASTL - (Australia)

2015202493

05/08/2015

09/14/2017

G - (Granted)

USA - (United States)

14/891,893

05/30/2014

 

F - (Pending)

ASTL - (Australia)

2014273996

05/30/2014

 02/14/2019

G - (Granted)

CANA - (Canada)

2,912,824

05/30/2014

 

F - (Pending)

CHIN - (China P.R.)

201480030985.0

05/30/2014

 

F - (Pending)

 

8

Table of Contents

 

COLO - (Colombia)

15-304594

05/30/2014

 

F - (Pending)

EPC - (European Patent Convention)

14803703.9

05/30/2014

 

F - (Pending)

HONG - (Hong Kong)

16112584.9

11/02/2016

 

F - (Pending)

INDI - (India)

11109/DELNP/2015

05/30/2014

 

F - (Pending)

INDO - (Indonesia)

P00201508659

05/30/2014

 

F - (Pending)

JAPA - (Japan)

2016-517043

05/30/2014

 11/30/2018

G - (Granted)

NEWZ - (New Zealand)

714208

05/30/2014

 

F - (Pending)

RUSS - (Russian Federation)

2015155730

05/30/2014

 04/10/2018

G - (Granted)

SAFR - (South Africa)

2015/08515

05/30/2014

 

F - (Pending)

KORS - (Republic of Korea)

10-2015-7037018

05/30/2014

 

F - (Pending)

CHIN - (China P.R.)

201610015312.9

01/11/2016

 04/10/2018

G - (Granted)

INDI - (India)

201618002729

01/25/2016

 

F - (Pending)

USA - (United States)

15/297,210

10/19/2016

 

F - (Pending)

HONG - (Hong Kong)

16113567.8

11/29/2016

 

F - (Pending)

 

Governmental Regulations

 

Environmental Regulation Affecting our Potential Market

 

We believe that under the Obama administration legislation and regulations had a negative impact on fossil fuel-fired, and specifically coal-fired, power generating facilities nationally and internationally. According to the U.S. Environmental Protection Agency, or EPA, power generation emits substantial levels of sulfur dioxide, nitrogen oxides, mercury and carbon dioxide into the environment. Regulation of these emissions affected the potential market for coal processed using our technology by imposing limits and caps on fossil fuel emissions. The most significant, existing national legislation and regulations affecting our potential market include the Clean Air Act, the Clean Air Interstate Rule and the Clean Air Mercury Rule, which are described further below. However, since the start of the Trump Administration all Obama era regulations implemented by the EPA are under review and it is widely expected that most of them will be repealed.

 

Environmental Regulation Affecting the Construction and Operation of Plants Using our Technology 

 

In the United States, future production plants using our technology will require numerous permits, approvals and certificates from appropriate federal, state and local governmental agencies before construction of each facility can begin and will be required to comply with applicable environmental laws and regulations (including obtaining operating permits) once facilities begin production. The most significant types of permits that are typically required for commercial production facilities include an operating and construction permit under the Clean Air Act, a wastewater discharge permit under the Clean Water Act, and a treatment, storage and disposal permit under the Resource Conservation and Recovery Act. Some federal programs have delegated regulatory authority to the states and, as a result, facilities may be required to secure state permits. Finally, the construction of new facilities may require review under the National Environmental Policy Act, or a state equivalent, which requires analysis of environmental impacts and, potentially, the implementation of measures to avoid or minimize these environmental impacts. We are working closely with Wyoming to assess all permitting requirements.

 

Any international plants will also be subject to various permitting and operational regulations specific to each country. International initiatives, such as the Kyoto Protocol/Copenhagen Accord, are expected to create increasing pressures on the electric power generation industry on a world-wide basis to reduce emissions of various pollutants, which management expects will create additional demand for our technology. 

 

Research and Development

 

In association with our engineering consultants and the University of Wyoming we have identified a number of changes to the original test facility.  While our budget does not currently allow us to allocate a specific funding for Research and Development (“R&D”), we will incorporate these changes to the assembly of the second generation test facility in Wyoming in the second quarter of 2019. During 2011 we invented the new Pristine M technology which following its successful testing in 2016 and 2017 we believe has already put us at the forefront of the global moisture removal technologies. The second generation test facility is expected to enable the extraction of by-products and Rare Earth Minerals for testing and research in partnership with the University of Wyoming.

 

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In the future, we anticipate a growing R&D budget that seeks to fully develop the potential of our three main processes. We will continue to evaluate our progress in new and existing technologies and will seek to fund additional needs as they arise.

 

Employees

 

As of December 31, 2018, we had two full-time executives, President and CEO Robin Eves, Chief Operations Officer and Chief Financial Officer, Aiden Neary, who both have written employment agreements. Messrs. Eves and Neary received no compensation for their participation on the Board of Directors.

 

The terms of the agreements described above were negotiated by and between the individuals and our Board of Directors based on the qualifications and requirements of each individual and the needs of the Company; however, the negotiations may not be deemed to have been at arm’s length.

 

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Table of Contents

 

ITEM 1A. RISK FACTORS

 

We have limited licensing revenues to date and we have made no provision for any contingency, unexpected expenses or increases in costs that may arise.

 

We have received only limited licensing revenues from operations to date. We have generated operational funding in fiscal 2018 from private debt and equity offerings to use for operating expenses or research and development. Since inception, we have been able to cover our operating losses from debt and equity financing. These sources of funds may not be available to cover future operating losses. If we are not able to obtain adequate sources of funds to operate our business we may not be able to continue as a going concern.

 

Our business strategy and plans could be adversely affected in the event we need additional financing and are unable to obtain such funding when needed. It is possible that our available funds may not be sufficient to meet our operating expenses, development plans, and capital expenditures for the next twelve months. Insufficient funds may prevent us from implementing our business strategy or may require us to delay, scale back or eliminate certain opportunities for the commercialization of our technology. If we cannot obtain necessary funding, then we may be forced to cease operations.

 

We may experience delays in resolving unexpected technical issues arising from the design of commercial units that will increase development costs and make the economics unattractive.

 

As we develop, refine and implement our technology on a commercial basis, we may have to solve technical, manufacturing and/or equipment-related issues. Some of these issues are ones that we cannot anticipate because the technology we are developing is new. If we must revise existing manufacturing processes or order specialized equipment to address a particular issue, we may not meet our projected timetable for bringing commercial operations on line. Such delays may interfere with our projected operating schedules, delay our receipt of licensing and royalty revenues from operations and decrease royalties from operations. Enhanced commercial designs are underway.

 

The market in which we are attempting to sell our technology is highly competitive and may attract significant additional research and development in coming years.

 

The market for our technology may become highly competitive on a global basis, with a number of competitors gaining significantly greater resources and greater market share than us. Because of greater resources and more widely accepted brand names, many of our competitors may be able to adapt more quickly to changes in the markets we have targeted or devote greater resources to the development and sale of new technology products. Our ability to compete is dependent on our emerging technology that may take some time to develop market acceptance. To improve our competitive position, we may need to make significant ongoing investments in service and support, marketing, sales, research and development and intellectual property protection. We may not have sufficient resources to continue to make such investments or to secure a competitive position within the market we target.

 

Our business depends on the protection of our patents and other intellectual property and may suffer if we are unable to adequately protect such intellectual property.

 

Our success and ability to compete are substantially dependent upon our intellectual property. We rely on patent laws, trade secret protection and confidentiality or license agreements with our employees, consultants, strategic partners and others to protect our intellectual property rights. However, the steps we take to protect our intellectual property rights may be inadequate. There are events that are outside of our control that pose a threat to our intellectual property rights as well as to our products and services. For example, effective intellectual property protection may not be available in every country in which we license our technology. Also, the efforts we have taken to protect our proprietary rights may not be sufficient or effective. Any impairment of our intellectual property rights could harm our business and our ability to compete. Also, protecting our intellectual property rights is costly and time consuming. Any increase in the unauthorized use of our intellectual property could make it more expensive to do business and harm our operating results. In addition, other parties may independently develop similar or competing technologies designed around any patents that may be issued to us. 

 

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Table of Contents

 

We have been granted several global patents in 2018 and have several patents applications pending as noted in the table above. Our ability to license our technology is substantially dependent on the validity and enforcement of these patents and patents pending. We cannot assure you that our patents will not be invalidated, circumvented or challenged, that patents will be issued for our patents pending, that the rights granted under the patents will provide us competitive advantages or that our current and future patent applications will be granted.

 

Third parties may invalidate our patents.

 

Third parties may seek to challenge, invalidate, circumvent or render unenforceable any patents or proprietary rights owned by or licensed to us based on, among other things:

 

•     subsequently discovered prior art;

 

•     lack of entitlement to the priority of an earlier, related application; or

 

•     failure to comply with the written description, best mode, enablement or other applicable requirements.

 

United States patent law requires that a patent must disclose the “best mode” of creating and using the invention covered by a patent. If the inventor of a patent knows of a better way, or “best mode,” to create the invention and fails to disclose it, that failure could result in the loss of patent rights. Our decision to protect certain elements of our proprietary technologies as trade secrets and to not disclose such technologies in patent applications, may serve as a basis for third parties to challenge and ultimately invalidate certain of our related patents based on a failure to disclose the best mode of creating and using the invention claimed in the applicable patent. If a third party is successful in challenging the validity of our patents, our inability to enforce our intellectual property rights could seriously harm our business.

 

We may be liable for infringing the intellectual property rights of others.

 

Our technology may be the subject of claims of intellectual property infringement in the future. Our technology may not be able to withstand any third-party claims or rights against their use. Any intellectual property claims, with or without merit, could be time-consuming, expensive to litigate or settle, could divert resources and attention and could require us to obtain a license to use the intellectual property of third parties. We may be unable to obtain licenses from these third parties on favorable terms, if at all. Even if a license is available, we may have to pay substantial royalties to obtain it. If we cannot defend such claims or obtain necessary licenses on reasonable terms, we may be precluded from offering most or all of technology and our business and results of operations will be adversely affected.

 

Our ability to execute our business plan would be harmed if we are unable to retain or attract key personnel.

 

Our technology is being marketed by a small number of the members of our management. Our technology is being developed and refined by a small number of technical consultants. Our future success depends, to a significant extent, upon our ability to retain and attract the services of these and other key personnel. The loss of the services of one or more members of our management team or our technical consultants could hinder our ability to effectively manage our business and implement our growth strategies. Finding suitable replacements could be difficult, and competition for such personnel of similar experience is intense. We do not carry key person insurance for our officers.

 

Overseas development of our business is subject to international risks, which could adversely affect our ability to license profitable overseas plants.

 

We believe a significant portion of the growth opportunity for our business lies outside the United States. Doing business in foreign countries may expose us to many risks that are not present domestically. We lack significant experience in dealing with such risks, including political, military, privatization, technology piracy, currency exchange and repatriation risks, and higher credit risks associated with customers. In addition, it may be more difficult for us to enforce legal obligations in foreign countries, and we may be at a disadvantage in any legal proceeding within the local jurisdiction. Local laws may also limit our ability to hold a majority interest in the projects that we develop. The Company has yet to establish any representation offices outside the United States.

 

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We do not know if coal processed using our technology is commercially viable.

 

We do not yet know whether coal processed using our technology can be produced and sold on a commercial basis in a cost effective manner after taking into account the cost of the feedstock, processing costs, license and royalty fees and the costs of transportation. Because we have not experienced any full scale commercial operations, we have not yet developed a guaranteed efficient cost structure. Initial indications show commercial viability. We are currently using the estimates for anticipated pricing and costs, as well as the qualities of the coal processed in the laboratory and our test facility at AES setting to make such estimates. We may experience technical problems that could make the processed coal more expensive than anticipated. Failure to address both known and unforeseen technical challenges may materially and adversely affect our business, results of operations and financial condition. Initial indications based on actual test results show a positive impact on the quality of the processed coal and based on current prices appear economically attractive.

 

We have experienced large net losses, have little liquidity and need to obtain funds for operations or we may not be able to continue.

 

We have incurred net losses since inception. The net losses to date include large non-cash expenses recorded for share-based compensation for consultants and officer compensation. However, in addition to the non-cash expenses, we had other operating expenses, funded in large part through loans from existing shareholders. In order to meet our current operating budget and anticipated contractual obligations, we estimate that we will need an additional $5,000,000 for 2019, based on our current contractual obligations. At December 31, 2018, we had total liabilities of $14,703,444 and cash of $25,745. If we cannot obtain adequate financing from new funding sources, we will be unable to continue operations or meet our contractual obligations.

 

Our use of equity as an alternative to cash compensation may cause excessive dilution for our current shareholders.

 

Due to shortage of operating funds and low liquidity, we have issued shares as compensation for services, including board and officer compensation as well as compensation for outside consultants and other services. This form of compensation has enabled us to obtain services that would not otherwise have been available to us but it has resulted in dilution to our shareholders. Unless we are able to obtain adequate financing in the immediate future, we may be forced to continue to obtain services through the issuance of shares and warrants, resulting in additional dilution to shareholders and potentially adversely affecting any return on investment.

 

Due to the uncertain commercial acceptance of coal processed using our technology we may not be able to realize significant licensing revenues.

 

While we strongly believe that a commercial market is developing both domestically and internationally for cleaner coal products such as coal processed using our technology, we may face the following risks due to the developing market for cleaner coal technology:

 

-     limited pricing information;

-     changes in the price differential between low- and high-BTU coal;

-     unknown costs and methods of transportation to bring processed coal to market;

-     alternative fuel supplies available at a lower price;

-     the cost and availability of emissions-reducing equipment or competing technologies; failure of governments to implement and enforce new environmental standards; and

-     a decline in energy prices which could make processed coal less price competitive.

 

If we are unable to develop markets for our processed coal, our ability to generate revenues and profits will be negatively impacted.

 

If we are unable to successfully construct and commercialize production plants, our ability to generate profits from our technology will be impaired.

 

Our future success depends on our ability to secure partners to locate, develop and construct future commercial production plants and operate them at a profit. A number of different variables, risks and uncertainties affect such commercialization including:

 

-     the complex, lengthy and costly regulatory permit and approval process;

-     potential local opposition to development of projects, which can increase cost and delay timelines;

 

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-     increases in construction costs such as for contractors, workers and raw materials;

-     transportation costs and availability of transportation;

-     the inability to acquire adequate amounts of low rank feedstock coal at forecasted prices to meet projected goals;

-     availability of suitable consumers of chemical by-product produced by our process;

-     engineering, operational and technical difficulties; and

-     possible price fluctuations of low-Btu coal which could impact profitability.

 

If we are unable to successfully address these risks, our results from operations, financial condition and cash flows may be adversely affected.

 

Future changes in the law may adversely affect our ability to sell our products and services.

 

A significant factor in expanding the potential U.S. market for coal processed using our technology is the numerous federal, state and local environmental regulations, which provide various air emission requirements for power generating facilities and industrial coal users. The Trump Administration has revoked a number of regulations and restrictions which had an adverse impact on the market for our products and services, and the revocation of such regulations and restrictions is expected to continue. However, the Trump Administration could change its supportive stance toward coal processing technology, and no assurance can be given as to the stance of any future US Government administrations.

 

ITEM 1B. UNRESOLVED STAFF COMMENTS

 

None.

 

ITEM 2. PROPERTIES

 

We have a leased satellite office at 295 Madison Avenue, New York, NY 10017 with a monthly cost of $200 per month. We lease the land at our test facility in Gillette, Wyoming. It is a three year lease at $1,000 per month. The Company paid the three year lease payment of $36,000 in advance.

 

ITEM 3. LEGAL PROCEEDINGS

In the matter entitled Soffin v Clean Coal Technologies, Inc Case No. 4D17-2751, the Fourth District Court of Appeal of the State of Florida issued a Non-final Opinion on July 12, 2018 unanimously affirming the Order Granting Defendants Motion for Judgment Notwithstanding the Verdict and Order Denying Plaintiff’s Motion for Additur entered by the Circuit Court for the Fifteenth Judicial Circuit, Palm Beach County, Florida Case No. 502010CA028706XXXXMB in favor of Clean Coal Technologies, Inc on August 1 2017. The fifteen day remedy period for the plaintiff to appeal expired on July 27, 2018 with no motion made. This case is now closed.

 

In April 2018, following mediation with a vendor of an outstanding balance, the Company successfully won the case and the balance of $320,669 was waived. The company had previously recognized the $320,669 balance in accounts payable, which was reversed in April 2018 and recognized as a gain on debt settlement.

 

As part of the separation agreement with Mr. Ponce de Leon, the ex COO of the Company, the Company agreed to pay him his accrued salary of $1,226,711 within two years but agreed to pay him $200,000 by November 2015 out of revenues earned. As the Company did not earn revenue in 2015 and as at December 2018 has still not earned revenue, the obligation to Mr. Ponce de Leon is currently in default and as at December 31, 2018 has accrued interest of $269,878 and totals $1,496,589 at December 31, 2018. It is the Company’s intention to pay Mr. Ponce de Leon these amounts as soon as possible after receiving revenue sufficient to cover such a payment.

 

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PART II

 

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASE OF EQUITY SECURITIES

 

Market Information

 

Our common stock is quoted on the OTC Markets Group website under the symbol CCTC since October 12, 2007. The following table sets forth the high and low bid prices for the Company’s common stock for the periods indicated. The prices below reflect inter-dealer quotations, without retail mark-up, mark-down or commissions and may not represent actual transactions.

 

Quarter Ended

 

Low

   

High

 

31-Dec-18

  $ 0.08     $ 0.29  

30-Sep-18

  $ 0.07     $ 0.10  

30-Jun-18

  $ 0.07     $ 0.10  

31-Mar-18

  $ 0.09     $ 0.12  

31-Dec-17

  $ 0.08     $ 0.13  

30-Sep-17

  $ 0.08     $ 0.13  

30-Jun-17

  $ 0.08     $ 0.15  

31-Mar-17

  $ 0.09     $ 0.19  

 

The closing price of our common stock as quoted on the OTC Markets on March 01, 2019 was $0.08 per share. As of March 01, 2019, there were approximately 2,205 holders of record of our common stock and 174,427,854 shares of common stock outstanding based on information provided by our transfer agent, Worldwide Stock Transfer, LLC.

 

Dividends

 

We have not paid any dividends on our common stock since our inception and do not anticipate paying any dividends in the foreseeable future. Any future determination to pay dividends will be at the discretion of our Board of Directors and will be dependent upon then-existing conditions, including our financial condition, results of operations, contractual restrictions, capital requirements, business prospects and other factors our Board of Directors deems relevant.

 

Issuer Purchases of Equity Securities

 

During the year ended December 31, 2018, we did not purchase any of our own equity securities.

 

Recent Issues and Sales of Unregistered Securities

 

The total number of common shares issued and outstanding as of December 31, 2018 was 174,427,854.

 

The above securities were issued in reliance on the exemption from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended, and the regulations promulgated thereunder. The issuances were for investment received, the transactions were privately negotiated and none involved any kind of public solicitation.

 

Issued for Services

 

During the year ended December 31, 2018, Clean Coal issued an aggregate of 6,269,102 common shares for services rendered valued at $556,216 to consultants and employees.

 

The above shares were issued in reliance on the exemption from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended, and the regulations promulgated there under. The transactions were issuances for services performed, the transactions were all privately negotiated and none involved any kind of public solicitation.

 

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Issued for Convertible Debt

 

During the year ended December 31, 2018, Clean Coal issued an aggregate of 19,186,333 common shares for convertible notes payable valued at $1,534,907.

 

ITEM 6. SELECTED FINANCIAL DATA

 

We are a “Smaller Reporting Company” as defined under §229.10(f)(1) of Regulation S-K and are not required to provide the information required by this Item.

 

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

FORWARD-LOOKING STATEMENTS AND FACTORS THAT MAY AFFECT FUTURE RESULTS

 

This Annual Report on Form 10-K contains forward-looking statements (as referenced in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) that involve risks and uncertainties, as well as assumptions that, if they do not materialize or prove correct, could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, statements concerning: our plans, strategies and objectives for future operations; new products or developments; future economic conditions, performance or outlook; the outcome of contingencies; expected cash flows or capital expenditures; our beliefs or expectations; activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future; and assumptions underlying any of the foregoing. Forward-looking statements may be identified by their use of forward-looking terminology, such as “believes,” “expects,” “may,” “should,” “would,” “will,” “intends,” “plans,” “estimates,” “anticipates,” “projects” and similar words or expressions. You should not place undue reliance on these forward-looking statements, which reflect our management’s opinions only as of the date of the filing of this Annual Report on Form 10-K and are not guarantees of future performance or actual results.

 

Overview

 

Clean Coal Technologies, Inc. (“We,” “Company” or “Clean Coal”) owns a patented technology that we believe will provide cleaner energy at low costs through the use of the world’s most abundant fossil fuel, coal. Our technology is designed to utilize controlled heat to extract and capture pollutants and moisture from low-rank coal, transforming it into a cleaner-burning, more energy-efficient fuel prior to combustion. Our proprietary coal cleaning process is designed to ensure that the carbon in coal maintains its structural integrity during the heating process while the volatile matter (polluting material) within the coal turns into a gaseous state and is removed from the coal. We have trade-marked the name “PRISTINE™” as a means of differentiating our processed product from the negative connotations generally associated with coal, and its traditional use. PRISTINE™ is applicable for a variety of applications, including coal-fired power stations, chemical byproduct extraction, and as a source fuel for coal-to-liquid technologies.

 

In September 2011, we filed for a second patent on a new technology known as Pristine-M™. The new technology is a moisture substitution technology that, owing to its superior product and economics, is expected to be highly successful in the moisture removal business globally.

 

During the second quarter of 2013, we filed a provisional patent application for a new process to be called Pristine-SA. The new process is designed to produce a coal product that is devoid of all volatiles and comes together with a solution for ensuring efficient and clean combustion on a level with natural gas. Now that the application on the basic concept has been filed, we expect to continue further research and development to address Pristine-SA’s potential application in various fuel and non-fuel product areas.

 

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Factors Affecting Results of Operations

 

Our operating expenses include the following:

 

•     Consulting expenses, which consist primarily of amounts paid for technology development and design and engineering services;

•     General and administrative expenses, which consist primarily of salaries, commissions and related benefits paid to our employees, as well as office and travel expenses;

•     Research and development expenses, which consist primarily of equipment and materials used in the development and testing of our technology; and

•     Legal and professional expenses, which consist primarily of amounts paid for audit, disclosure and reporting services.

 

Results of Operations

 

The following information should be read in conjunction with the financial statements and notes appearing elsewhere in this Report. We have generated limited revenues from inception to date. We anticipate that we may not receive any significant revenues from operations until we begin to receive royalty revenues from our coal testing plant which we estimate will be approximately 12 months after the successful signing of a commercial agreement anticipated in quarter two of fiscal 2018. We are also in preliminary discussions with companies, business groups, consortiums in the USA and Asia to license our technology, which, if successful, could realize limited short-term revenue opportunities from the signing of technology licensing agreements.

 

For the Years Ended December 31, 2018, and 2017.

 

We had no direct revenues for the years ended December 31, 2018 and 2017. In the fourth quarter of 2017 we received $100,000 as a non- refundable deposit on a two million ton license agreement from Wyoming New Power, a related party. The definitive license agreement is expected to be completed in 2019 following the assembly of the second generation test facility.  In the year ended December 31, 2012, we have received an initial license fee of $375,000 from Jindal paid pursuant to the signing of our coal testing plant construction contract. The balance of $375,000 will be due upon the successful testing of Jindal coal in our second generation test facility in Wyoming. We do not anticipate any significant royalty fees for approximately 12-18 months thereafter.

 

Operating Expenses

 

Our operating expenses for the year ended December 31, 2018 totaled $2,745,129 compared to $3,693,713 for the prior year. The $948,584 decrease is mainly due to a $1,890,286 decrease in R&D expenses during 2018 as a result of winding down the development of our Pristine M technology in late 2017 and early 2018 and an $18,300 gain on sale of assets. The decrease in R&D is partially offset by a $685,980 increase in general and administrative expenses, a $206,999 decrease in gain on forgiveness of accounts payable and a $67,023 increase in consulting services.

 

Other Income and Expenses

 

Total other expense for the year ended December 31, 2018 consisted of $2,814,571 in interest expense on convertible debt and related amortization of debt discounts.

 

Total other income for the year ended December 31, 2017 was $1,879,961, mainly due to $4,620,866 in gain on derivative valuation, partially offset by interest expenses of $2,487,226 from the issuance of convertible debt and related amortization of debt discounts, $226,249 from debt standstill and settlement expenses and $27,430 in loss on debt extinguishment.

 

Net Income/Loss

 

For the year ended December 31, 2018, we recognized a net loss of $5,559,700, compared to a net loss of $1,813,752 for the year ended December 31, 2017. The net loss for 2018 is mainly due to $2,814,571 in interest expense on convertible debt and related debt discount amortization and $2,745,129 in operating expenses as discussed above. The net loss for 2017 is mainly due to operating expenses of $3,693,713, partially offset by other income of $1,879,961 as discussed above.

 

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We anticipate losses from operations will increase during the next twelve months due to anticipated increased payroll expenses as we add necessary staff and increases in legal and accounting expenses associated with maintaining a reporting company. We expect that we will continue to have net losses from operations for several years until revenues from operating facilities become sufficient to offset operating expenses, unless we are successful in the sale of licenses for our technology.

 

Liquidity and Capital Resources

 

We have generated minimal revenues since inception. We have obtained cash for operating expenses through advances and/or loans from affiliates and stockholders, the sale of common stock, the issuance of loans and convertible debentures converted or convertible to common stock and the receipt of $375,000 in license fees from Jindal as described above.

 

Net Cash Used in Operating Activities.

 

During the years ended December 31, 2018 and 2017, we used $2,775,728 and $2,982,271 in cash from operations, mainly due to the net losses discussed above, net of non-cash operating expenses of $1,769,793 in 2018 and non-cash operating gains of $3,377,354 in 2017. Our primary uses of funds in operations were payments made to our consultants and employees, legal and professional costs as well as travel and office expenses.

 

Net Cash Provided By Investing Activities.

 

During the year ended December 31, 2018, we received $18,300 in proceeds from the sale of fixed assets. We had no cash flows from investing activities in 2017.

 

Net Cash Provided by Financing Activities.

 

Net cash provided by financing activities during the years ended December 31, 2018 and 2017 totaled $2,771,400 and $2,893,600, respectively. We received $2,284,800 and $2,836,680 from the issuance of convertible debt from related parties, $36,600 and $130,010 from the issuance of notes payable to related parties and $482,500 and $0 from the issuance of notes payable during the years ended December 31, 2018 and 2017, respectively. We repaid $32,500 on notes payable during the year ended December 31, 2018 and repaid $25,000 on convertible debt and $48,090 of notes payable during the year ended December 31, 2017.

 

Cash Position and Outstanding Indebtedness.

 

Our total indebtedness at December 31, 2018 and 2017 was $14,703,444 and $13,100,550, respectively, which consists of $12,830,656 and $11,606,992 of current liabilities and $1,872,788 and $1,493,558 of long-term debt, respectively. Current liabilities consist primarily of accounts payable, accounts payable to related parties, short-term debt, related party convertible debt and accrued liabilities. At December 31, 2018, we had current assets of $37,745, consisting of $25,745 of cash and $12,000 of prepaid assets. At December 31, 2017 we had current assets of $11,773 in cash. Our working capital deficit at December 31, 2018 and 2017 was $12,816,911 and $11,595,219, respectively.

 

Employees

 

As of December 31, 2018, we have two full-time executives, President and CEO Robin Eves and Chief Operations Officer and Chief Financial Officer Aiden Neary, who have written employment agreements. Mr. Eves and Neary received no compensation for their participation on the Board of Directors.

 

On July 1, 2017, we entered into two year employment agreements with Robin Eves as President and Chief Executive Officer and Aiden Neary as Chief Operating Officer, Chief Financial Officer and director. Mr. Eves receives an annual salary of $519,750. Mr. Neary receives an annual salary of $450,000. Each officer was also granted 750,000 common shares upon signing the contract.

 

The terms of the agreements described above were negotiated by and between the individuals and our Board of Directors based on the qualifications and requirements of each individual and the needs of the company.

 

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Contractual Obligations and Commitments

 

We secured a permanent location in Gillette, Wyoming for our test facility. The term of the lease is three years and calls for rent of $36,000, prepaid.

 

We lease office space in New York, NY on a month to month basis, at a monthly rate of $200 per month.

 

Our engineering consultants has tentatively estimated construction costs for each one million short ton coal complete cleaning facility of approximately $250 million (excluding land costs) or costs and for a similar size Pristine-M-only facility of approximately $35-40 million (excluding land costs). All intellectual property rights associated with new art developed by our engineering consultants remain our property.

 

We are also actively pursuing technology license and royalty agreements in order to begin construction of other facilities without incurring the capital costs associated with the construction of future plants.

 

In November 2015, we entered into a month to month agreement with South of the Rose communication to manage our Investor Relations needs and manage social media requirements.

 

Construction of the coal testing plant was completed in 2015 and testing commenced in December 2015 at the AES Coal Power Utility in Oklahoma. As of December 31, 2018, we have paid $10,014,946 in development costs. The facility was moved to Wyoming in the first quarter of 2018. We anticipate that there will be an additional cost of approximately $2 million to build the additional parts required for the second generation test facility and for its assembly.

 

Based on our current operational costs and including the capital requirements for our project deployments, we estimate we will need a total of approximately $5,000,000 to fund the Company for the fiscal year 2019 and an additional $4,000,000 to continue for the following fiscal year (2020) or until an initial commercial plant is up and running.

 

Off-Balance Sheet Arrangements

 

We have not and do not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of establishing off-balance sheet arrangements or other contractually narrow or limited purposes. Therefore, we do not believe we are exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such relationships.

 

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We are exposed to changes in prevailing market interest rates affecting the return on our investments but do not consider this interest rate market risk exposure to be material to our financial condition or results of operations. We invest primarily in United States Treasury instruments with short-term (less than one year) maturities. The carrying amount of these investments approximates fair value due to the short-term maturities. Under our current policies, we do not use derivative financial instruments, derivative commodity instruments or other financial instruments to manage our exposure to changes in interest rates or commodity prices.

 

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

Our financial statements required by this item are included on the pages immediately following the Index to Financial Statements appearing below.

 

FINANCIAL STATEMENTS INDEX

 

 

PAGE

Report of Independent Registered Public Accounting Firm

21

Balance Sheets at December 31, 2018 and 2017

22

Statements of Operations for the years ended December 31, 2018 and 2017

23

Statements of Changes in Stockholders’ Deficit for the years ended December 31, 2018 and 2017

24

Statements of Cash Flows for the years ended December 31, 2018 and 2017

25

Notes to Financial Statements for the years ended December 31, 2018 and 2017

27

 

 

 

 

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

To the Stockholders and Board of Directors of

Clean Coal Technologies, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of Clean Coal Technologies, Inc. (the “Company”) as of December 31, 2018 and 2017, and the related statements of operations, changes in stockholders’ deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

 

Going Concern Matter

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has a working capital deficit, has generated net losses since its inception and further losses are anticipated. The Company requires additional funds to meet its obligations and the costs of its operations. These factors raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. 

 

 

/s/MaloneBailey, LLP

www.malonebailey.com

We have served as the Company’s auditor since 2008.

Houston, Texas

March 7, 2019

 

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Clean Coal Technologies, Inc.

Balance Sheets

 

   

December 31,

 
   

2018

   

2017

 

ASSETS

         
                 

Current Assets

               

  Cash

  $ 25,745     $ 11,773  

Total Current Assets

    25,745       11,773  
                 

Property, plant and equipment, net of accumulated

   depreciation of $1,019 and $1,019, respectively

    -       -  

Right to use ground lease, net of accumulated amortization of $8,000

    28,000       -  
                 

Total Assets

  $ 53,745     $ 11,773  
                 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

         

Current Liabilities

               

  Accounts payable

  $ 1,149,467     $ 2,268,507  

  Accrued liabilities

    6,071,160       4,224,073  

  Customer deposit – related party

    100,000       100,000  

  Notes payable – related parties

    86,600       50,000  

  Notes payable, net of unamortized discounts

    903,025       413,185  

  Convertible debt, net of unamortized discounts – related party

    4,520,404       4,551,227  

Total Current Liabilities

    12,830,656       11,606,992  
                 

Long-Term Liabilities

               

  Convertible debt, net of unamortized discounts – related party

    1,872,788       1,493,558  

Total Liabilities

    14,703,444       13,100,550  
                 

Stockholders’ Deficit

               

  Common stock, $0.00001 par value 500,000,000 shares

    authorized, 174,427,854 and 148,972,419 shares

    issued and outstanding, respectively

    1,745       1,489  

   Additional paid-in capital

    259,320,220       255,321,698  

   Accumulated deficit

    (273,971,664

)

    (268,411,964

)

Total Stockholders’ Deficit

    (14,649,699

)

    (13,088,777

)

Total Liabilities and Stockholders’ Deficit

  $ 53,745     $ 11,773  

 

The accompanying notes are an integral part of these unaudited financial statements.

 

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Clean Coal Technologies, Inc.

Statements of Operations

 

   

Years Ended

 
   

December 31,

 
   

2018

   

2017

 
                 

Operating Expenses:

               

General and administrative

  $ 2,690,062     $ 2,004,082  

Consulting services

    88,349       21,326  

Gain on sale of assets

    (18,300

)

    -  

Gain on settlement of accounts payable

    (322,133

)

    (529,132

)

Research and development

    307,151       2,197,437  
                 

Loss from Operations

    (2,745,129

)

    (3,693,713

)

                 

Other Income (Expenses):

               
                 

Gain on change in fair value of derivative liabilities

    -       4,620,866  

Loss on extinguishment of debt

    -       (27,430

)

Interest expense

    (2,814,571

)

    (2,487,226

)

Debt default, standstill, settlement and transfer expenses

    -       (226,249

)

    Total Other Income (Expenses)

    (2,814,571

)

    1,879,961

)

                 

Net (loss)

  $ (5,559,700

)

  $ (1,813,752

)

                 

Net (loss) per share - basic

  $ (0.04

)

  $ (0.01

)

                 

Weighted average common shares outstanding - basic

    156,878,353       130,511,894  
                 

Net (loss) per share – diluted

  $ (0.04

)

  $ (0.02

)

                 

Weighted average common shares outstanding – diluted

    156,878,353       235,437,542  

 

The accompanying notes are an integral part of these unaudited financial statements.

 

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Clean Coal Technologies, Inc.

Statements of Changes in Stockholders’ Deficit

Years Ended December 31, 2018 and 2017

 

                   

Additional

           

Stockholders’

 
   

Common Stock

   

Paid-In

   

Accumulated

   

Equity

 
   

Shares

   

Amount

   

Capital

   

Deficit

   

(Deficit)

 

Balances at December 31, 2016

    101,068,451       1,011       235,702,112       (266,598,212

)

    (30,895,089

)

Common stock issued for services

    1,000,000       10       127,390       -       127,400  

Common stock issued for conversion of debt and interest

    36,403,968       362       2,496,324       -       2,496,686  

Common stock issued for conversion of wages payable

    8,000,000       80       999,920       -       1,000,000  

Common stock issued for related party debt

    1,000,000       10       127,390               127,400  

Common stock issued for officer bonus

    1,500,000       16       194,684               194,700  

Reclassification of derivative to equity upon conversion

    -       -       1,655,656       -       1,655,656  

Derivative liabilities settled to equity

    -       -       12,847,304               12,847,304  

Beneficial conversion feature on convertible debt

    -       -       1,170,918       -       1,170,918  

Net loss

    -       -       -       (1,813,752

)

    (1,813,752

)

Balances at December 31, 2017

    148,972,419       1,489       255,321,698       (268,411,964

)

    (13,088,777

)

Common stock issued for conversion of debt and interest

    19,186,333       192       1,534,715       -       1,534,907  

Common stock issued for officer bonus

    5,792,829       59       514,857               514,916  

Common stock issued for services

    376,273       4       33,296       -       33,300  

Common stock issued for board of director services

    100,000       1       7,999       -       8,000  

Beneficial conversion feature on convertible debt

    -       -       1,907,655       -       1,907,655  

Net loss

                            (5,559,700

)

    (5,559,700

)

Balances at December 31, 2018

    174,427,854     $ 1,745     $ 259,320,220     $ (273,971,664

)

  $ (14,649,699

)

 

The accompanying notes are an integral part of these unaudited financial statements.

 

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Clean Coal Technologies, Inc.

Statements of Cash Flows

 

   

Years Ended

 
   

December 31,

 
   

2018

   

2017

 

CASH FLOWS FROM OPERATING ACTIVITIES:

               

Net loss

  $ (5,559,700

)

  $ (1,813,752

)

Adjustment to reconcile net loss to net cash used in operating activities:

               

Amortization of debt discounts

    1,546,009       1,324,265  

Amortization of lease asset

    8,000       -  

Common stock issued for officer bonus

    514,916       194,700  

Common stock issued for consulting expense

    33,300       127,400  

Common stock issued for board of director services

    8,000       -  

Loan default and standstill fees added to loan principal

    -       98,849  

Gain on settlement of accounts payable

    (322,133

)

    (529,132

)

Gain on sale of assets

    (18,300

)

    -  

Loss on extinguishment of debt

    -       27,430  

Gain on change in fair value of derivative liabilities

    -       (4,620,866

)

Changes in operating assets and liabilities:

               

Customer deposits from related party

    -       100,000  

Increase in right to use assets

    (36,000

)

    -  

Increase (decrease) in accounts payable

    (796,908

)

    840,896  

Increase in accrued expenses

    1,847,087       1,267,939  

Net Cash Used in Operating Activities

    (2,775,728

)

    (2,982,271

)

                 

CASH FLOWS FROM INVESTING ACTIVITIES:

               

Proceeds from the sale of fixed assets

    18,300       -  

Net Cash Provided by Investing Activities

    18,300       -  
                 

CASH FLOWS FROM FINANCING ACTIVITIES:

               

Borrowings on notes payable

    482,500       -  

Borrowings on related party convertible debt, net of face discounts and lender fees

    2,284,800       2,836,680  

Payments on convertible debt

    -       (25,000

)

Borrowings on related party debt

    36,600       130,010  

Payments on related party debt

    (32,500

)

    (48,090

)

Net Cash Provided by Financing Activities

    2,771,400       2,893,600  
                 

NET CHANGE IN CASH

    13,972       (88,671

)

CASH - beginning of period

    11,773       100,444  

CASH - end of period

  $ 25,745     $ 11,773  

 

The accompanying notes are an integral part of these unaudited financial statements.

 

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Clean Coal Technologies, Inc.

Statements of Cash Flows

(continued)

 

   

Years Ended

 
   

December 31,

 
   

2018

   

2017

 
                 

SUPPLEMENTAL DISCLOSURES:

               

Cash paid for interest

  $ -     $ -  

Cash paid for income taxes

  $ -     $ -  
                 

NON-CASH INVESTING AND FINANCING ACTIVITIES:

               

Beneficial conversion feature on convertible debt – related party

  $ 1,907,655     $ 1,170,918  

Derivative liabilities recorded as debt discounts

  $ -     $ 1,095,215  

Common stock issued for conversion of debt and accrued interest– related party

  $ 1,534,907     $ 1,705,679  

Common stock issued for conversion of debt and accrued interest

  $ -       791,007  

Common stock issued for related party note payable

  $ -     $ 99,970  

Third party convertible debt assigned to related party

  $ -     $ 907,100  

Reclassification of derivatives to equity upon conversion

  $ -     $ 1,655,656  

Reclassification of derivatives to equity upon release from tainting

  $ -     $ 12,847,304  

Accrued wages and debt converted to common stock

  $ -     $ 1,000,000  

Accrued cash structuring fees

          $ 124,760  

 

The accompanying notes are an integral part of these unaudited financial statements.

 

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Clean Coal Technologies, Inc.

Notes to Financial Statements

 

NOTE 1: NATURE OF BUSINESS 

 

Clean Coal Technologies, Inc. (“CCTI”, the “Company”, “Clean Coal”, “we”, “our”), a Nevada corporation, is developing a patented multi-stage process that transforms coal with high levels of impurities, contaminants and other polluting elements into an exceptionally efficient, clean and inexpensive source of high energy, low polluting fuel.

 

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

 

Accounting Methods

 

The Company’s financial statements are prepared using the accrual method in accordance with Generally Accepted Accounting Principles in the United State of America (“GAAP”). Certain amounts have been reclassified to conform to the current period’s presentation including Notes payable; Notes payable – related parties; short and long term Convertible debt, net of unamortized discounts; short and long term Convertible debt, net of unamortized discounts – related party.

 

Use of Estimates

 

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure on contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Revenue Recognition

 

On January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers (ASU 2014-09) and all subsequent amendments to the ASU, which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets. The core principle of ASU 2014-09 is that revenue is recognized when the transfer of goods or services to customers occurs in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. ASU 2014-09 requires the disclosure of sufficient information to enable readers of the Company’s financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 also requires disclosure of information regarding significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 provides two methods of retrospective application, full and modified retrospective. Full retrospective requires companies to apply ASU 2014-09 to each prior reporting period presented while modified retrospective requires companies to retrospectively apply ASU 2014-09 with the cumulative effect recognized at the date of initial application. The Company elected to adopt ASU 2014-09 using the modified retrospective application effective for the quarter ending March 31, 2018, with no impact the Company’s financial statements as it has no current contracts for revenue generating activities and a limited history of generating revenue from operations as discussed below. 

 

The Company generated revenue in 2012 related to license fees received for the use of its technology. The license fee revenue requires no continuing performance on the Company’s part and is recognized upon receipt of the licensing fee and grant of the license.

 

During 2012, the Company granted a 25-year technology license agreement for a one-time license fee of $750,000. The first installment of the license fee of $375,000 has been collected pursuant to the signing of a coal testing plant construction contract and the balance of $375,000 will be due upon the successful testing of the coal testing plant, estimated sometime in fiscal 2019. In addition, under the technology license agreement, the Company will receive an on-going royalty fee of $1 per metric ton on all coal processed using the technology, up to $4,000,000 per annum. No revenue has been earned in 2018 or 2017.

 

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Net Loss per Common Share

 

Basic net loss per share is computed on the basis of the weighted average number of common shares outstanding during each year. Diluted net loss per share is computed similar to basic net loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The Company uses the “if-converted” method for calculating the earnings per share impact of outstanding convertible debentures, whereby the securities are assumed converted and an earnings per incremental share is computed. Options, warrants and their equivalents are included in EPS calculations through the treasury stock method. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

 

The calculation of basic and diluted net loss per share for the years ended December 31, 2018 and 2017 are as follows:

 

   

2018

   

2017

 

Basic Net Loss Per Share:

               

Numerator:

               

Net loss

  $ (5,559,700

)

  $ (1,813,752

)

Denominator:

               

Weighted-average common shares outstanding

    156,878,353       130,511,894  
                 

Basic net loss per share

  $ (0.04

)

  $ (0.01 )
                 

Diluted Net Loss Per Share:

               

Numerator:

               

Net loss

  $ (5,559,700

)

  $ (1,813,752 )

Gains on fair value and interest expense on convertible debt

    -       (2,133,640

)

Diluted net loss

  $ (5,559,700

)

  $ (3,947,392

)

Denominator:

               

Weighted-average common shares outstanding

    156,878,353       130,511,894  

Common stock warrants

    -       -  

Convertible debt

    -       104,925,648  

Weighted average shares used in computing diluted net loss per share

    156,878,353       235,437,542  
                 

Diluted net loss per share

  $ (0.04

)

  $ (0.02

)

 

The following table summarizes the potential shares of common stock that were excluded from the computation of diluted net loss per share for the years ended December 31, 2018 and 2017 as such shares would have had an anti-dilutive effect:

 

   

2018

   

2017

 

Common stock warrants

    7,146,616       7,871,555  

Convertible notes payable

    120,187,899       -  

Total

    127,334,515       7,781,555  

 

Cash and Cash Equivalents

 

Clean Coal considers all highly liquid investments with an original maturity of three months or less to be cash equivalents for purposes of preparing its Statements of Cash Flows. There are no cash equivalents at December 31 2018 and 2017.

 

Fair Value of Financial Instruments

 

The fair values of the Company’s financial instruments including cash, accounts payable, accrued expenses, convertible debt and notes payable approximate their carrying amounts.

 

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Federal Income Tax

 

Clean Coal files income tax returns in the U.S. federal jurisdiction, and the state of Nevada. Clean Coal’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. 

 

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. 

 

Net deferred tax assets consist of the following components as of December 31, 2018 and 2017:

 

   

2018

   

2017

 

Deferred tax assets:

               

Net operating loss carryforward

  $ 7,485,004     $ 6,692,117  

Valuation allowance

    (7,485,004

)

    (6,692,117

)

    $ -     $ -  

 

The federal income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate of 21% to pretax income from continuing operations for the years ended December 31, 2018 and 2017 due to the following:

 

   

2018

   

2017

 

Pre-tax book loss

  $ (1,167,537

)

  $ (380,888

)

Meals

    830       1,576  

Common stock, options and warrants issued for services and debt discount

    116,805       250,887  

Debt discount amortization

    324,662       278,145  

Gain on debt settlement

    (67,647

)

    -  

Loss on derivative liability

    -       (970,382

)

Valuation allowance

    792,887       820,662  
    $ -     $ -  

 

The Company had net operating losses of approximately $35,642,879 that begin to expire in 2028.  Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years. In accordance with the statute of limitations for federal tax returns, the Company’s federal tax returns for the years 2014 through 2017 are subject to examination.

 

Property and Equipment 

 

Property and equipment consists of furniture and fixtures and computer equipment, recorded at cost, depreciated upon placement in service over estimated useful lives ranging from three to five years on a straight-line basis. As of December 31, 2018 and 2017, Clean Coal had property and equipment with no net book value. Expenditures for normal repairs and maintenance are charged to expense as incurred.

 

Impairment of Long Lived Assets 

 

In the event facts and circumstances indicate the carrying value of a long-lived asset, including associated intangibles, may be impaired, an evaluation of recoverability is performed by comparing the estimated future undiscounted cash flows associated with the asset to the asset’s carrying amount to determine if a write-down to market value or discounted cash flow is required.

 

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Table of Contents

 

Research and Development Costs

 

Research and development expenses include salaries, related employee expenses, research expenses and consulting fees. All costs for research and development activities are expensed as incurred. Clean Coal expenses the costs of licenses of patents and the prosecution of patents until the issuance of such patents and the commercialization of related products is reasonably assured. During the years ended December 31, 2018 and 2017, the Company recognized $307,151 and $2,197,437 of research and development costs, respectively.

 

Stock-based Compensation

 

FASB ASC 718 established financial accounting and reporting standards for stock-based employee compensation plans. It defines a fair value based method of accounting for an employee stock option or similar equity instrument. Clean Coal accounts for stock-based compensation to employees in accordance with FASB ASC 718. Clean Coal accounts for share based payments to non-employees in accordance with FASB ASC 505-50.

 

Fair Value of Financial Instruments  

 

ASC 820, Fair Value Measurements (ASC 820) and ASC 825, Financial Instruments (ASC 825), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:

 

Level 1 - Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

 

Level 2 - Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

 

Level 3 - Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

 

The carrying values of cash, accounts payable, and accrued liabilities approximate fair value. Pursuant to ASC 820 and 825, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. As of December 31, 208 and 2017, the recorded values of all other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

 

Derivative Instruments

 

The Company accounts for derivative instruments in accordance with ASC Topic 815, Derivatives and Hedging (ASC 815) and all derivative instruments are reflected as either assets or liabilities at fair value in the balance sheet.

 

The Company uses estimates of fair value to value its derivative instruments. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, The Company’s policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for The Company’s liabilities), relying first on observable data from active markets. Additional adjustments may be made for factors including liquidity, credit, bid/offer spreads, etc., depending on current market conditions. Transaction costs are not included in the determination of fair value. When possible, The Company seeks to validate the model’s output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. The Company categorizes its fair value estimates in accordance with ASC 820 based on the hierarchical framework associated with the three levels of price transparency utilized in measuring financial instruments at fair value as discussed above. As of December 31, 2018 and 2017, the Company did not have any derivative instruments.

 

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Table of Contents

 

Recently Issued Accounting Pronouncements

 

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements. The Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The amendments in the ASU must be applied using one of two retrospective methods and are effective for annual and interim periods beginning after December 15, 2016. In December 2016, the FASB modified ASU 2014-09 to be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. As modified, the FASB permits the adoption of the new revenue standard early, but not before the annual periods beginning after December 15, 2017. The Company adopted the new standard on January 1, 2018 using the modified retrospective method without a material impact on our financial statements.

 

In February 2016, the FASB issued ASC 842, Leases (“ASC 842”). ASC 842 related to leases to increase transparency and comparability among organizations by requiring the recognition of right of use assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company is also required to recognize and measure leases existing at, or entered into after, the beginning of the earliest comparative period presented using a modified retrospective approach, with certain practical expedients available.

 

The Company elected to early adopt ASC 842 effective January 1, 2018 and have elected all available practical expedients. The standard did not have a material impact on our financial statements.

 

In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”) which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new standard, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. ASU 2017-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017.  The Company adopted this new standard on January 1, 2018 without a material impact on our financial statements.

 

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features, II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. ASU 2017-11 intends to reduce the complexity associated with the issuer’s accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, the Board determined that a down round feature (as defined) would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings and is effective in fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company adopted the new standard during 2017, preventing the need to account for several outstanding warrants that contain down round features as derivative instruments.

 

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Table of Contents

 

NOTE 3: GOING CONCERN 

 

The accompanying financial statements have been prepared on a going concern basis of accounting which contemplates continuity of operations, realization of assets, liabilities, and commitments in the normal course of business. The accompanying financial statements do not reflect any adjustments that might result if Clean Coal is unable to continue as a going concern. Clean Coal has a working capital deficit as of December 31, 2018 and has generated recurring net losses since inception. Management believes Clean Coal will need to raise capital in order to operate over the next 12 months. Clean Coal’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability. Clean Coal has limited capital with which to pursue its business plan. There can be no assurance that Clean Coal’s future operations will be significant and profitable, or that Clean Coal will have sufficient resources to meet its objectives. These conditions raise substantial doubt as to Clean Coal’s ability to continue as a going concern. Management may pursue either debt or equity financing or a combination of both, in order to raise sufficient capital to meet Clean Coal’s financial requirements over the next twelve months and to fund its business plan. There is no assurance that management will be successful in raising additional funds.

 

NOTE 4: RELATED PARTY TRANSACTIONS

 

Wages and bonus payable to related parties

 

Accruals for salary and bonuses to officers and directors are included in accrued liabilities in the balance sheets and totaled $2,719,653 and $2,042,992 as of December 31, 2018 and 2017, respectively. As part of the separation agreement with Mr. Ponce de Leon, the Company agreed to pay him all his accrued salary within two years but agreed to pay him $200,000 by November 2015 out of revenues earned. As the Company did not earn revenue in 2015 and as at December 2018 has still not earned revenue, the obligation to Mr. Ponce de Leon of $1,496,589 is currently in default and the amount includes $269,875 in accrued interest. It is the Company’s intention to pay Mr. Ponce de Leon immediately upon receiving revenue.

 

Nonconvertible Debt

 

During the year ended December 31, 2018, the Company received $35,000 from the issuance of a related party note payable. The note is due on demand and does not accrue interest. As of December 31, 2018 and 2017, the Company had outstanding notes payable to former affiliates of the Company of $85,000 and $50,000, respectively. These notes payable of the Company are unsecured, bear no interest and are due on demand.

 

During the year ended December 31, 2018, the Company received $1,600 from a related party advance. The advance is due on demand and does not accrue interest. As of December 31, 2018 and 2017, the Company had outstanding advances payable to an officer of the Company of $1,600 and $0, respectively. The advances payable are unsecured, bear no interest and are due on demand.

 

During the year ended December 31, 2017, the Company borrowed $130,010 from officers and directors. The loans were unsecured, bore no interest and was due on demand. The Company repaid $48,090 of the loans. The remaining principal of $99,970 was converted into 1,000,000 shares of common stock during 2017, resulting in a loss on settlement of $27,430.

 

Convertible Debt

 

2018

 

During the year ended December 31, 2018, the Company borrowed an aggregate of $2,284,800, net of beneficial conversion feature of $1,907,655, under convertible notes payable from a Company with an interest owned by a significant stockholder. As of December 31, 2018, the Company had outstanding short-term convertible notes payable of $4,660,381, net of unamortized discounts of $139,977 and outstanding long term convertible notes payable of $5,026,800, net of unamortized discounts of $3,154,012. The convertible notes payable mature between May 2019 and December 2021 and are convertible at $0.06 per share, which was a discount to the market price on the date of issuance. Amortization expense related to debt discounts on convertible debt for the years ended December 31, 2018 and 2017 was $1,506,170.

 

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Table of Contents

 

During the year ended December 31, 2018, the holder of convertible debt elected to convert a total of $1,534,907 in principal into 19,186,333 shares of common stock, or $0.08 per share.

 

2017

 

During the year ended December 31, 2017, $907,100 of non-related party convertible debt was purchased by a significant shareholder of the Company.

 

During the year ended December 31, 2017, the Company borrowed an aggregate of $2,836,680, net of original issue discounts and fees of $30,081, under convertible notes payable from a Company with an interest owned by a significant stockholder. Accrued cash structuring fees of $124,760 are associated with the borrowings. Additional discounts of $1,095,215 were recognized due to derivative liabilities and discounts of $1,170,918 due to beneficial conversion features. As of December 31, 2017, the Company had outstanding short term convertible notes payable of $4,551,227, net of unamortized discounts of $310,428 and outstanding long term convertible notes payable of $1,493,558, net of unamortized discounts of $2,582,075. The outstanding convertible notes of the Company are unsecured, bear interest between 6% and 12% per annum, mature between November 2018 and December 2020 and are convertible at fixed rates between $0.06 and $0.15 per share. All notes that were convertible during the year ended December 31, 2017 were accounted for as derivative liabilities until the final resolution of outstanding variable conversion debt instruments on June 30, 2017 (see Note 6). Aggregate amortization of the debt discounts on convertible debt for the year ended December 31, 2017 was $1,324,265.

 

Eleven of the above referenced convertible notes payable are convertible at $0.06 per share, which was a discount to the market price on the date of issuance. As such, a total of $1,170,918 was recognized as the intrinsic value of a beneficial conversion feature and is being amortized to interest expense over the life of the respective convertible notes payable.

 

During the year ended December 31, 2017, related party holders of convertible notes payable elected to convert a total of $1,661,100 in principal and $44,579 in accrued interest into a total of 25,200,512 shares of the Company’s common stock.

 

Outstanding notes payable and convertible notes payable to related parties consisted of the following as of December 31, 2018 and 2017:

 

   

December 31,

 

Name

 

2018

   

2017

 

Convertible Debt:

               

Convertible notes payable, interest at 12%, convertible at $0.08 per share, unsecured, due May 25, 2019

  $ 1,452,566     $ 2,987,473  

Convertible note payable, interest at 12%, convertible at $0.12 per share, unsecured, due between May 25, 2019 and August 1, 2019

    1,630,073       1,630,073  

Convertible notes payable, interest at 12%, convertible at $0.15 per share, unsecured, due between May 25, 2019 and March 31, 2020

    1,799,742       1,799,742  

Convertible notes payable, interest at 12%, convertible at $0.06 per share, unsecured, due between April 20, 2020 and December 27, 2020

    4,804,800       2,520,000  

    Total

    9,687,181       8,937,288  

Less: short-term debt

    (4,520,404

)

    (4,861,655

)

  Total long-term debt

    5,166,777       4,075,633  

Less: Long-term unamortized discounts

    (3,293,989

)

    (2,582,075

)

    Net long-term debt

  $ 1,872,788     $ 1,493,588  
                 

Nonconvertible Debt:

               

Notes payable, no interest, unsecured, due upon demand

  $ 86,600     $ 50,000  

    Total

  $ 86,600     $ 50,000  

 

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Table of Contents

 

Principal payments on debt to related parties for each of the following five years is as follows:

 

2019

  $ 4,746,981  

2020

    2,742,000  

2021

    2,284,800  

2022

    -  

2023

    -  

Thereafter

    -  

Total

  $ 9,773,781  

 

Common Stock Issued to Related Parties

 

During the year ended December 31, 2018, the Company issued a total of 5,792,829 common shares for compensation to two officers, fair value of $514,916 is recognized as expense during 2018.

 

During the year ended December 31, 2018, the Company issued 100,000 common shares for compensation to a member of the board of directors, fair value of $8,000 is recognized as expense during 2018.

 

During the year ended December 31, 2018, the Company issued an aggregate of 19,186,333 common shares to a related party convertible note holder for conversion of $1,534,907 in principal.

 

During the year ended December 31, 2017, the Company issued a total of 8,000,000 common shares for the conversion of $1,000,000 of salary due to two officers.

 

During the year ended December 31, 2017, the Company issued a total of 1,500,000 common shares for compensation to two officers, fair value of $194,700 is recognized as expense during 2017.

 

During the year ended December 31, 2017, the Company issued a total of 1,000,000 common shares for the conversion of $99,970 of notes payable to an officer, the fair value of the shares is $127,390, resulting in a loss of $27,430 on settlement

 

Non-Binding License Agreement – related party

 

During July 2017, the Company entered into a non-binding agreement to explore the opportunity of engaging in a license of Clean Coal Pristine M technology. As part of the non-binding agreement, in September 2017, the Company received a non-refundable deposit of $100,000, subject to application to any future license agreement, from Wyoming New Power. The license agreement is for two million tons per annum. The remainder of the license fee will be due upon the signing of a definitive license agreement expected in the second quarter of 2019. Wyoming New Power is a related party because it is controlled by an entity that has a significant interest in Clean Coal Technologies, Inc.

 

NOTE 5: DEBT

 

Convertible Debt

 

During August 2018, the Company borrowed an aggregate of $160,000, net of an original issue discount of $10,000, under a convertible note payable. The Company recognized $3,644 in amortization of related debt discount. The convertible note payable bears interest at 10% per annum, matures on August 20, 2019 and is convertible after 180 days, or February 16, 2019, at a 65% discount of the quoted market price of the Company’s common stock. This note was repaid in full in February 2019.

 

Nonconvertible Debt

 

During October 2018, the Company borrowed $345,000, net of original debt discount of $45,000 under a note payable. The note payable bears interest at 7% per annum, is due January 8, 2019 and was unsecured. As of December 31, 2018, the balance on the note payable was $345,000 and the Company recognized $36,196 in amortization of the debt discount, leaving a balance of $8,804 as of December 31, 2018.

 

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Table of Contents

 

Outstanding notes payable and convertible notes payable to third parties consisted of the following as of December 31, 2018 and 2017:

 

   

December 31,

 

Name

 

2018

   

2017

 

Nonconvertible Debt:

               

Notes payable, no interest, unsecured, past due

  $ 35,000     $ 35,000  

Notes payable, no interest, unsecured, past due

    378,185       378,185  

Note payable, interest at 7% per annum, unsecured, due January 18, 2019

    345,000       -  

Convertible note payable, convertible beginning February 16, 2019 at a 65% discount to market, interest at 10%, unsecured, due August 20, 2019

    160,000       -  

    Total current debt

    918,185       413,185  

Less: Unamortized discount

    (15,160

)

    -  

    Net, current debt

  $ 903,025     $ 413,185  

 

NOTE 6: DERIVATIVE LIABILITIES

 

During the year ended December 31, 2017, eight convertible notes issued by the Company became convertible and qualified as derivative liabilities under Financial Accounting Standards Board (FASB) Accounting Series Codification 815, Derivatives (ASC 815). During the year ended December 31, 2017, debt holders of the convertible debt that tainted the convertible instrument pool and required all outstanding convertible debt, nonemployee common stock options and common stock warrants to be accounted for as derivative liabilities under ASC 815, converted the remaining balances, resulting in the pool no longer being tainted as all remaining convertible instruments have fixed conversion amounts.

 

As of and for the years ended December 31, 2018 and 2017, the aggregate fair value of the outstanding derivative liabilities was $0 and $0 and the Company recognized a net gain on the change of fair value of $0 and $4,620,866, respectively.

 

The Company analyzed the conversion options embedded in the convertible debt for derivative accounting consideration under ASC 815 and determined that the instruments embedded in the above referenced convertible promissory notes should be classified as liabilities and recorded at fair value due to their being no explicit limit to the number of shares to be delivered upon settlement of the conversion options.  Because the number of shares to be issued upon settlement of the above referenced convertible promissory notes could not be determined under these instruments, the Company could not determine whether it would have sufficient authorized shares at a given date to settle future share instruments. The fair values of the instruments were determined using a Black-Scholes option-pricing model.

 

The Company estimated the fair value of the derivative liabilities using the Black-Scholes option pricing model and the following key assumptions during the year ended December 31, 2017:

 

   

December 31, 2017

 

Expected dividends

    -

%

Expected term (years)

    0.25 – 5.00  

Volatility

    48% - 353

%

Risk-free rate

    0.50% - 1.93

%

 

 

The below table presents the change in the fair value of the derivative liability during the year ended December 31, 2017:

 

Fair value as of December 31, 2016

  $ 18,028,611  

  Fair value on the date of issuance recorded as debt discounts

    1,095,215  

  Extinguishment of liability to equity due to conversions

    (1,655,656

)

  Extinguishment of liability to equity due to release from ASC 815

    (12,847,304

)

  Gain on change in fair value of derivatives

    (4,620,866

)

Fair value as of December 31, 2017

  $ -  

 

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NOTE 7: EQUITY TRANSACTIONS

 

Common Stock 

 

2018

 

During the year ended December 31, 2018, the Company issued a total of 5,792,829 common shares for compensation to two officers, fair value of $514,916 is recognized as expense during 2018.

 

During the year ended December 31, 2018, the Company issued an aggregate of 19,186,333 common shares to a related party convertible note holder for conversion of $1,534,907 in principal.

 

During the year ended December 31, 2018, the Company issued 100,000 common shares for services to a member of the board of directors, fair value of $8,000 is recognized as expense during 2018.

 

 During the year ended December 31, 2018, the Company issued a total of 376,273 common shares for services to consultants, fair value of $33,300 is recognized as expense during 2018.

 

2017

 

During the year ended December 31, 2017, the Company issued 1,000,000 common shares for a debt transfer fee rendered valued at $127,400.

 

During the year ended December 31, 2017, the Company issued an aggregate of 36,403,968 common shares to convertible note holders for conversion of $2,494,195 in principal and $2,491 in accrued interest.

 

Options

 

There were no common stock options issued and no unamortized options expense during the years ended and as of December 31, 2018 and 2017.

 

The following table presents the stock option activity during the years ended December 31, 2018 and 2017:

 

           

Weighted

   

Weighted

 
           

Average

   

Average

 
   

Options

   

Exercise Price

   

Remaining Term

 

Outstanding - December 31, 2016

    685,713     $ 4.52       2.62  

Granted

    -       -       -  

Expired

    -       -       -  

Exercised

    -       -       -  

Outstanding - December 31, 2017

    685,713     $ 4.52       0.78  

Granted

    -       -       -  

Expired

    (571,428

)

    3.50       -  

Exercised

    -       -       -  

Outstanding – December 31, 2018

    114,285     $ 9.63       0.75  
                         

Exercisable – December 31, 2018

    114,285     $ 9.63       0.75  

 

The intrinsic value of the exercisable options as of December 31, 2018 and 2017 was $0 and $0, respectively.

 

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Warrants

 

In November 2013, the Company issued a lender an aggregate of 310,863 common stock warrants in connection with a note payable. The warrants were exercisable immediately at $1.75 per share and expire on November 30, 2018. These warrants contain a subsequent equity sale reset “down round”, which provides that if the Company sells or grants any option to purchase any common stock of the Company at any effective price per share less than the exercise price of the warrants, the exercise price shall be reduced to equal that lower exercise price. During 2017, the exercise price of these warrants was reset to $0.055 per share.  As the warrants were accounted for as derivative liabilities (due to being tainted by the outstanding convertible debt) at the time the reset was triggered, the change in fair value resulting from the reset of $26,060 was recognized as change in fair value of derivative liabilities.

 

These warrants were accounted for as derivative liabilities under ASC 815 (see Note 6). The fair value of the warrants of $292,148 was recorded as a debt discount which is being amortized to interest expense over the life of the note.

 

In August 2014, the Company issued a lender an aggregate of 4,180,000 common stock warrants in connection with a note payable. The warrants were exercisable immediately at $0.50 per share and expire on August 31, 2019. These warrants contain a subsequent equity sale reset “down round”, which provides that if the Company sells or grants any option to purchase any common stock of the Company at any effective price per share less than the exercise price of the warrants, the exercise price shall be reduced to equal that lower exercise price. During 2017, the exercise price of these warrants was reset to $0.055 per share. As the warrants were accounted for as derivative liabilities (due to being tainted by the outstanding convertible debt) at the time the reset was triggered, the change in fair value resulting from the reset of $177,959 was recognized as change in fair value of derivative liabilities.

 

These warrants were accounted for as derivative liabilities under ASC 815 (see Note 6). The fair value of the warrants of $855,440, of which, $400,000 was recorded as a debt discount which is being amortized to interest expense over the life of the note and $455,440 was expensed as loss on derivative liability.

 

During the year ended December 31, 2017, the Company granted 72,497 warrants with convertible debt. The fair value of these warrants associated with the notes was determined to be $6,820 as of December 2017, of which $6,820 was recorded as a discount to the related notes. There were no warrants issued during 2018.

 

The following table presents the stock warrant activity during the years ended December 31, 2018 and 2017:

 

           

Weighted

   

Weighted

 
           

Average

   

Average

 
   

Warrants

   

Exercise Price

   

Remaining Term

 

Outstanding - December 31, 2016

    7,314,432     $ 0.41       2.62  

Granted

    67,340       0.15       3.00  

Forfeited/expired

    (38,571

)

    1.75       -  

Exercised

    -       -       -  

Outstanding - December 31, 2017

    7,343,192     $ 0.08       2.15  

Granted

    -       -       -  

Forfeited/expired

    (310,863

)

    0.06       -  

Exercised

    -       -       -  

Outstanding – December 31, 2018

    7,032,329     $ 0.08       1.21  
                         

Exercisable – December 31, 2018

    7,032,329     $ 0.08       1.21  

 

The intrinsic value of the exercisable warrants as of December 31, 2018 was $264,021.

 

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NOTE 8: COMMITMENTS AND CONTINGENCIES

 

Litigation

 

In the matter entitled Soffin v Clean Coal Technologies, Inc Case No. 4D17-2751, the Fourth District Court of Appeal of the State of Florida issued a Non-final Opinion on July 12, 2018 unanimously affirming the Order Granting Defendants Motion for Judgment Notwithstanding the Verdict and Order Denying Plaintiff’s Motion for Additur entered by the Circuit Court for the Fifteenth Judicial Circuit, Palm Beach County, Florida Case No. 502010CA028706XXXXMB in favor of Clean Coal Technologies, Inc on August 1 2017. The fifteen day remedy period for the plaintiff to appeal expired on July 27, 2018 with no motion made. This case is now closed.

 

In April 2018, following mediation with a vendor of an outstanding balance, the Company successfully won the case and the balance of $320,669 was waived. The company had previously recognized the $320,669 balance in accounts payable, which was reversed in April 2018 and recognized as a gain on debt settlement.

 

Separation Agreement

 

As part of the separation agreement with Mr. Ponce de Leon, the ex COO of the Company, the Company agreed to pay him his accrued salary of $1,226,711 within two years but agreed to pay him $200,000 by November 2015 out of revenues earned. As the Company did not earn revenue in 2015 and as at December 2018 has still not earned revenue, the obligation to Mr. Ponce de Leon is currently in default and has accrued interest of $269,878 and the balance is $1,496,589 at December 31, 2018. It is the Company’s intention to pay Mr. Ponce de Leon immediately upon receiving revenue including any interest that has been accrued.

 

Operating Leases

 

Clean Coal has an operating lease for its executive offices in Manhattan, New York. Effective February 1, 2014, the lease is month to month, at a monthly rate of $200 per month.

 

In April 2018, the company secured a permanent location in Wyoming for its test facility at the Fort Union Industrial Park. The term of the lease is three years and calls for rent of $36,000, prepaid. The $36,000 covering three years rent was paid in April 2018 and is being amortized to lease expense using the straight-line method over the three-year term of the lease. During the year ended December 31, 2018, the Company recognized $8,000 in amortization of right to use assets.

 

NOTE 9: SUBSEQUENT EVENTS

 

During January 2019, the Company raised a net $25,000 in financing from the issuance of related party convertible debt and $75,000 from a related party loan.

 

During February 2019, the Company raised a net $50,000 in financing from the issuance of related party convertible debt and $7,000 from a related party management loan, which was repaid in full in February 2019. The Company raised $210,000 from a related party loan which bears no interest and is payable on demand.

 

On February 25, 2019, the Company borrowed an aggregate of $300,000, net of an original issue discount of $15,000, under a convertible note payable. The convertible note payable bears interest at 6% per annum, matures on August 25, 2019 and is convertible at a 65% discount of the lowest closing bid price of the Company’s common stock during the 10 prior trading days.

 

During February 2019, the Company repaid a convertible note payable totaling $160,000 in full, including interest and prepayment penalties of $76,000, or a total of $236,000.

 

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

There have been no changes in our independent accountants, MaloneBailey, LLP, or disagreements with them on matters of accounting or financial disclosure.

 

ITEM 9A. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

As of December 31, 2018, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our financial disclosure controls and procedures were not effective due to our limited internal resources and lack of ability to have multiple levels of transaction review.

 

Management’s Report on Internal Control over Financial Reporting

 

Management is responsible for the preparation and integrity of our published consolidated financial statements. The consolidated financial statements have been prepared in accordance with GAAP and, accordingly, include amounts based on judgments and estimates made by management. Management also prepared the other information included in the annual report and is responsible for its accuracy and consistency with the consolidated financial statements.

 

Management is responsible for establishing and maintaining a system of internal control over financial reporting, which is intended to provide reasonable assurance to our management and Board of Directors regarding the reliability of our consolidated financial statements. The system includes but is not limited to:

 

-      a documented organizational structure and division of responsibility;

-      established policies and procedures to foster a strong ethical climate which is communicated throughout the Company;

-      regular reviews of our consolidated financial statements by qualified individuals; and

-      the careful selection, training and development of our employees and personnel.

 

There are inherent limitations in the effectiveness of any system of internal control, including the possibility of human error and the circumvention or overriding of controls. Also, the effectiveness of an internal control system may change over time. We have implemented a system of internal control that was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements in accordance with GAAP.

 

Management has assessed our internal control system in relation to criteria for effective internal control over financial reporting described in “Internal Control-Integrated Framework” issued in 2013 by the Committee of Sponsoring Organizations (“COSO”) of the Treadway Commission. Based upon these criteria, we believe that, as of December 31, 2018, our system of internal control over financial reporting was not effective due to material weaknesses that were identified. The material weaknesses are caused by our limited internal resources and limited personnel.  We presently have only two officers. The material weaknesses include 1.) no segregation of duties within the Company, 2.) there is no management oversight or multiple levels of supervision and review, no control documentation being produced, no one to review control documentation if it was being produced, 3.) a lack of expertise in the application of generally accepted accounting principles in regard to the accounting and reporting of our derivative transactions.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in disclosure controls and procedures that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially effect, our disclosure controls and procedures. We do not expect to implement any changes to our disclosure controls and procedures until there is a significant change in our operations or capital resources.

 

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to the rules of the Securities and Exchange Commission for smaller reporting companies that permit the Company to provide only management’s report in this annual report.

 

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PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

The executive officers and directors of the Company are as follows:

 

Name

 

Age

 

Position

 

Held Since

Robin T. Eves

 

68

 

CEO, President, Director

 

August 2010

Thomas Shreve

 

67

 

Director

 

November 2015

Robert Liscouski

 

64

 

Director

 

September 2018

Scott Younger

 

76

 

Director

 

November 2013

Aiden Neary

 

47

 

COO, CFO, Director

 

February 2016

 

Certain biographical information with respect to our current officers and directors is set forth below.

 

Robin Eves has been our Chief Executive Officer, President and a member of the Board of Directors since August 2010. Prior to his appointment with the Company, from February 2009 through August 2010, he served as the CEO of Atlantic Energy Group Ltd., a global energy company developing a major storage and pipeline initiative in South Carolina and the build-out of a global trading business in London, Singapore and the rest of Asia. From the period March 2005 to January 2009 he worked with Oil Trade and Transport LLC, working closely with Sempra Energy Trading. He was responsible for business development in Russia, India and the Middle East. Also during the period, from March 2003 to February 2005, Mr. Eves served as Managing Director and global head of crude and refined products for United Bank of Switzerland From October 2002 to February 2003, Mr. Eves acted as a consultant for Barclays Capital in London, hired to do an extensive due diligence on the Russian/former Soviet Union markets in preparation for Barclays’ possible re-entry into those markets. From February 1990 to September 2002, Mr. Eves served as Managing Director for Synergy International SA/Magna Oil and Gas LLC/CCL Oil, where he was responsible for all trading and structured transactions. Prior to that time, from 1987 to 1990, Mr. Eves served as Vice-President and global head of products trading, and from 1976 to 1987, worked in various positions with Cargill.

 

We believe that Mr. Eves’ qualifications to serve on the Board of Directors include his extensive background in all aspects of the global energy business, including experience in crude and refined products for power production, including gas and coal, as well as related emissions controls.

 

Mr. Liscouski was appointed to the board in September, 2018. He is recognized as a security industry leader, thought leader and subject matter expert in Enterprise Risk Management; assessing, mitigating and managing physical and cyber security risk. Superior track record of developing critical and sensitive programs to protect national security interests and critical infrastructure. Extensive leadership and operational experience in working enterprise wide, to include Internal and External Stakeholders to formulate and implement Risk Management strategies, programs and metrics to successfully mitigate and manage physical, cyber and converged risk. Innovator and thought leader in identifying emerging security technologies and providing guidance in areas such as crisis management, best practices, organizational development and strategic planning.

 

Mr. Liscouski was appointed by President George W. Bush as the first Assistant Secretary for Infrastructure Protection when the U.S. Department of Homeland Security was founded in 2003. During his tenure as Assistant Secretary for Infrastructure Protection, Mr. Liscouski was responsible for the design, development, implementation and oversight of the Office of Infrastructure, including:

●     The National Cyber Security Division – The nation’s first coordinated civilian effort to work coordinate the US Government and private sector cyber security efforts.

●     Expansion of the Information Sharing Analysis Centers (ISACs) and the Creation the National Infrastructure Coordination Center a Public-Private Partnership to protect critical infrastructure

●     The design, development and implementation of the National Infrastructure Protection Plan (NIPP) and the development of DHS’ Risk Management Framework for Infrastructure Protection

●     Chemical Security Legislation – The Chemical Facility Anti-Terrorism Standards (CFATS)

 

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●   Committee of Foreign Investment in the US (CFIUS) Matters 
Mr. Liscouski served as President and Director of Implant Sciences Corporation, a leading manufacturer of Explosive Trace Detection equipment and was Director of Information Assurance at the Coca-Cola Company and Vice President of the Law Enforcement Division of Orion Scientific Systems, a developer of advanced analytic software tools.

 

Earlier in his career, he served as a Diplomatic Security Service Special Agent with the U.S. Department of State and a Homicide and Undercover Investigator for the Bergen County (New Jersey) Prosecutors Office.

 

Mr. Liscouski is also currently a visiting fellow at the Center for Strategic and International Studies as Washington DC based think tank and served as a board member of the Intelligence Science Board supporting the Director of the Central Intelligence Agency and the Director of National Intelligence. Mr. Liscouski is a frequent contributor to business and security media on Homeland Security and Cyber Security issues. Mr. Liscouski received his BS degree from John Jay College of Criminal Justice and his Master of Public Administration from the John F. Kennedy School of Government, Harvard University.

We believe that Mr. Liscouski’s qualifications to serve on the Board of Directors include his extensive business investment experience. 

 

Dr. Scott Younger was appointed to the Board of Directors in November 2013.  Dr. Younger is a recognized leader in infrastructure development across Asia, having held a range of senior academic, consulting and business development roles in Hong Kong, Thailand and Indonesia over the past 35 years.  He has served as project manager and consultant in many World Bank and ADB funded road and water sector programs, with projects in 10 Asian countries. He was Team Leader for the UK and World Bank funded, award winning Master’s Degree program in Highway and Transport Engineering at the Institute of Technology Bandung, 1986-93.  He currently serves as a Director of PT Nusantara Infrastructure Tbk, a public listed company, investing in infrastructure in Indonesia and for whom he chairs their joint venture (Louis Dreyfus Int’l) port operation in Lampung; and as Commissioner for the East Bali Poverty Project, a model in sustainable development. In 2003 he was awarded the OBE for services to civil engineering and British business interests in Indonesia. Dr. Younger is also President Commissioner of Glendale Partners, a leading infrastructure, natural resources, renewable energy and consulting firm based in Jakarta, Indonesia, and Chairman of the EuroCham Working Group on Infrastructure, and Senior Vice-Chairman of the International Business Chamber, with a particular remit to report on infrastructure. He is a current member of the Eurocham Board and former Member of the Board of the British Chamber of Commerce (1996-2004 and 2010-2012), and responsible for preparing annual reports for government infrastructure. He is also a director of Prime Pacific Coal and Prime Pacific Gold (Singapore). Dr. Younger holds degrees in Engineering from Glasgow, UC Berkeley and Hong Kong.

 

We believe that Dr. Younger’s qualifications to serve on the Board of Directors include his over 35 years of professional experience working throughout Asia, including work as academic, consulting and business development as well as his engineering background.

 

Aiden Neary was appointed as Chief Financial Officer of the Company on November 26, 2013 and Chief Operating Officer in July 2015. In January 2016 Mr. Neary was appointed to the Board of Directors. Since October 2010, Mr. Neary has been exploring opportunities across the investment banking landscape and has also pursued private interests including charitable work.  From February 2010 to October 2010, he served as Managing Director and Chief of Staff for Global Equity at UBS in Stamford, Connecticut. From November 2006 to February 2010, Mr. Neary was Executive Director and Chief of Staff for Global Equity at UBS. From June 2003 to November 2006, he served as Executive Director and COO for the Global Commodity Business at UBS. Prior to that position, from February 2002 to June 2003, he was Director and Business Manager for Global Government Bond and Derivative business at UBS in London, and from August 2000 to February 2002, as Associate Director and Business Manager for Global Government Bond and Derivative Business at UBS in London. Prior to joining UBS, from January 2000 to July 2000, Mr. Neary was Manager and Head of Product Control for Fixed Income Derivatives at Schroders Investment Bank in London. From January 1995 to January 2000, he was Manager and Head of Product Control for Government Bonds and Derivatives at ING Barings.  Mr. Neary earned a degree in Accounting and Law from Kingston University in London (1990 – 1993), and is a Chartered Management Accountant since 1998.

 

We believe that Mr. Neary’s qualifications to serve on the Board of Directors include his over 15 years of professional experience working in Investment Banking and his over two years of working with Clean Coal Technologies Inc.

 

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Mr. Thomas W. Shreve was appointed to the Board of Directors in November, 2015. Mr. Shreve moved from California to Indonesia in 1991 to serve as country representative for New York-based law firm Milbank, Tweed, Hadley & McCloy, and over the succeeding 24 years has been a leading transaction execution specialist and business executive in Indonesia. Tom has managed some of the more significant transactions recently undertaken by Indonesian companies, including the permanent acquisition financing and subsequent sale of Berau Coal Energy, and the acquisition of Inter Milan Football Club by a group of Indonesian businessmen. He served as an officer of Berau Coal Energy and as a non-executive director of Inter Milan Football Club. As a lawyer in Jakarta affiliated with Milbank in the early 1990s, Mr. Shreve advised the issuers in the first New York Stock Exchange listing by a private sector Indonesian company, as well as the first U.S. public bond issue by a private sector Indonesian company. As an investment banker, he advised the Indonesian Government in the sale of distressed assets in the aftermath of the Asian Financial Crisis of 1997-98. He served as Chief Executive Officer of Recapital Investment Group from 2009-14 and of Acuatico Pte. Ltd., a water infrastructure company, in 2014-15. A member of the California Bar, Mr. Shreve earned his J.D. degree at Northwestern University School of Law in Chicago.

 

We believe that Mr. Shreve’s qualifications to serve on the Board of Directors include his strong legal and business connections across Asia and in particular in Indonesia where he currently resides.

 

All directors will hold office until the next annual meeting of stockholders (currently expected to be held in the second quarter of 2019) and until their successors have been duly elected and qualified. There are no agreements with respect to the election of directors. Vacancies on the Board of Directors during the year may be filled by the majority vote of the directors in office at the time of the vacancy without action by the stockholders.

 

Board Committees

 

At this filing date, we have an audit committee, but no compensation committee or nominating committee. Our full Board currently performs the duties and responsibilities of such committees. Due to the size of the Company and due to the small number of directors that we had for 2018, we believed it was appropriate for the full Board to handle the responsibilities of these committees. It is our intention through 2019, as our Board increases in size, to introduce a number of committees.

 

Audit Committee Financial Expert

 

We created an Audit Committee in December 2017 comprising of three independent board of director members, Thomas Shreve, Scott Younger and Robert Liscouski and two internal board of director members Aiden Neary and Robin Eves.

 

Code of Conduct

 

On February 11, 2013, the board of directors approved a code of business conduct and ethics, filed as an exhibit to the Company’s Current Report on Form 8-K on February 14, 2013.

 

Board Leadership Structure and Role in Risk Oversight

 

The Board of Directors has risk oversight responsibility for the Company and administers this responsibility directly. The Board of Directors oversees our risk management process through regular discussions of our risks with senior management both during and outside of regularly scheduled Board of Directors meetings. In addition, the Board of Directors administers our risk management process with respect to risks relating to our accounting and financial controls.

 

Our Board of Directors has no policy with regard to the separation of the offices of Chairman of the Board and Chief Executive Officer, and believes, given the size of our company, no such formal policy is necessary at this time.

 

Director Independence 

 

Our Board is not subject to any independence requirements. However, our Board has reviewed the independence of its directors under the requirements set forth by the NASDAQ Stock Market. Messrs. Eves and Ponce de Leon are officers of the Company and therefore not deemed independent directors.  Dr. Jennings and Dr. Younger are deemed to be independent directors.

 

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Meetings of our Board of Directors 

 

Our Board of Directors held 4 meetings during the fiscal year ended December 31, 2018 (including meetings conducted by telephone conferencing).  No director attended less than 75% of all board meetings during the fiscal year ended December 31, 2018. All current Board members and all nominees for election to the Board of Directors are encouraged to attend our annual meetings of stockholders, either in person or by teleconference.

 

Nomination of Director Candidates

 

We receive suggestions for potential director nominees from many sources, including members of the Board, advisors, and stockholders. Any such nominations, together with appropriate biographical information, should be submitted to the Chairperson of the Board in the manner discussed below. Any candidates submitted by a stockholder or stockholder group are reviewed and considered in the same manner as all other candidates.

 

Qualifications for consideration as a Board nominee may vary according to the particular areas of expertise being sought as a complement to the existing board composition. However, minimum qualifications include high level leadership experience in business activities, breadth of knowledge about issues affecting the Company, experience on other boards of directors, preferably public company boards, and time available for meetings and consultation on Company matters. Our Board does not have a formal policy with regard to the consideration of diversity in identifying director candidates, but seeks a diverse group of candidates who possess the background, skills and expertise to make a significant contribution to the Board, to the Company and our stockholders. Candidates whose evaluations are favorable are then chosen by the full Board. The full Board selects and recommends candidates for nomination as directors for stockholders to consider and vote upon at the annual meeting.

 

Stockholder Communications 

 

Stockholders wishing to communicate with the Board of Directors or with a specific director may send a letter to our corporate secretary at Clean Coal Technologies, Inc., 295 Madison Avenue (12th Floor), New York, NY 10017, and should be marked to the attention of the appropriate director or directors.  Our secretary will circulate the communications (other than commercial solicitations) to the appropriate director or directors.  Communications marked “Confidential” will be forwarded unopened.

 

Directors’ Compensation 

 

In 2018, all meetings were via telephone conference. The Board plans one regularly scheduled meeting each fiscal quarter and may schedule additional meetings as necessary. For fiscal 2018 and 2019, Dr. Younger, Mr. Shreve and Mr. Liscouski will each receive annual compensation as a director of $25,000 which will be paid only upon available cash flow. In addition, Dr. Younger received 28,572 common shares upon his appointment as a director and Mr. Shreve and Mr. Liscouski received 100,000 common shares.

 

All of our present non-employee directors, have other employment or sources of income and will routinely devote only such time to the Company necessary to maintain its viability. It is estimated that each non-employee director will devote at least 2 days per month to the Company’s corporate activities.

 

Stock Ownership Requirements 

 

The Board of Directors has encouraged its members to acquire and maintain stock in the Company to link the interests of such persons to the stockholders. However, the Board of Directors has not established stock ownership guidelines for members of the Board of Directors or the executive officers.

 

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ITEM 11. EXECUTIVE COMPENSATION

 

Compensation Discussion and Analysis 

 

At this time, we do not have a compensation committee or a fully developed compensation policy. We have only two executive officers, our CEO and president, our Chief Operations Officer and Chief Financial Officer. Their employment agreements were negotiated by the board of directors with the terms based on the board’s assessment of their qualifications and requirements.

 

We anticipate establishing a compensation committee sometime in the next 12 months. The following Compensation Discussion and Analysis describes prospectively the expected duties, responsibilities and role of our future Compensation Committee as well as the material elements of our planned compensation for our future executive officers. The information below provides the description of compensation policies that we intend to make applicable to executive officers and other highly compensated individuals under employment and/or consulting arrangements in the future.

 

Planned Objectives of Our Compensation Program

 

The primary objective of our compensation program, including our executive compensation program, will be to maintain a compensation program that will fairly compensate our executives and employees, attract and retain qualified executives and employees who are able to contribute to our long term success, encourage performance consistent with clearly defined corporate goals and align our executives’ long term interests with those of our stockholders. To that end, our future compensation practices will be intended to:

 

1. Tie total compensation to the Company’s performance and individual performance in achieving financial and non-financial objectives; and

 

2. Align senior management’s interests with stockholders’ interests through long term equity incentive compensation.

 

Expected Role of the Compensation Committee 

 

The Compensation Committee, once formed, will determine the compensation of our Chief Executive Officer and, in consultation with the Chief Executive Officer, and our other executive officers. In addition, the Compensation Committee will be responsible for adopting, reviewing and administering our compensation policies and programs, including any cash bonus incentive plan or equity incentive plan that we may adopt. We anticipate that our Compensation Committee will adhere to a compensation philosophy that (i) seeks to attract and retain qualified executives who will add to the long term success of the Company, (ii) promotes the achievement of operational and strategic objectives, and (iii) compensates executives commensurate with each executive’s level of performance, level of responsibility and overall contribution to the success of the Company.

 

In determining the compensation of our Chief Executive Officer and our other executive officers, the Compensation Committee expects to consider the financial condition and operational performance of the Company during the prior year. In determining the compensation for executive officers other than the Chief Executive Officer, the Compensation Committee plans to consider the recommendations of the Chief Executive Officer.

 

The Compensation Committee will review the compensation practices of other companies, based in part on market survey data and other statistical data relating to executive compensation obtained through industry publications and other sources. The Compensation Committee does not intend to benchmark the Company’s compensation program directly with other publicly traded companies or other companies with which we may compete for potential executives since some of these competitors are privately held companies for which executive compensation information may not be available. However, the Compensation Committee intends to compare our executive compensation program as a whole with the programs of other companies for which survey data is available, and will also compare the pay of individual executives if the jobs are sufficiently similar to make the comparison meaningful. The Compensation Committee plans to use such survey data primarily to ensure that our executive compensation program as a whole will be competitive.

 

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Components of Future Executive Compensation 

 

We anticipate that our future executive employment agreements will provide that employees will be compensated by salary and bonus, with bonuses potentially including cash and equity components. The specific elements of the future compensation program are not determined but will most likely include base salary, an annual cash performance bonus and long-term equity incentives. Our compensation program will be designed to provide our executives with incentives to achieve our short and long-term performance goals and to pay competitive base salaries. Each executive officer’s current and prior compensation will be considered in setting future compensation.

 

In addition, we expect employment agreements with our executive officers to provide for other benefits, including potential payments upon termination of employment. Once established, the compensation committee will consider all of the above components in determining the exact makeup of the total executive compensation package as well as the factors to be applied in establishing each component.

 

Perquisites and Other Benefits

 

At this time, we do not expect to provide perquisites or personal benefits to future executive officers, other than the payment of health insurance premiums and payment of life insurance premiums.

 

Employment Agreements

 

We signed two year employment agreements effective July 1, 2017, with Robin Eves, as Chief Executive Officer and President, and Mr. Neary as COO/CFO. Mr. Eves will receive an annual salary of $519,750 and Mr. Neary $450,000. Each officer was granted a signing bonus of 750,000 shares of the Company’s restricted common stock upon execution of the agreements. In addition, each officer was granted an additional 750,000 common shares payable following the one year completion of the contract due July 1, 2017.

 

The above employment agreements include provisions for participation in employee benefit programs if the Company adopts such programs during the term of the agreements. The agreements also include certain anti-takeover provisions that would require payment of annual salary as well as immediate vesting of all equity compensation if an entity acquiring the Company did not offer comparable positions to each officer.

 

Neither Mr. Eves, nor Mr. Neary is compensated for their contributions to the Board of Directors.

 

We have not entered into employment agreements with any other officers, directors, or any other persons but may do so during the current fiscal year as we expand operations. 

 

Other Key Employees and Consultants

 

As at December 31, 2018 we have no other employees in the company.

 

Employee Benefits

 

When we have adequate financing, we intend to offer employee health insurance benefits coverage to provide our workforce with a reasonable level of financial support in the event of illness or injury. It is our intention to offer health insurance benefits to all full time employees, including executive officers.

 

Accounting Matters

 

We have adopted the provisions of ACS 718 Compensation – Stock Compensation which requires the fair value of options to be recorded as compensation cost in the consolidated financial statements. Options in our compensation packages result in additional compensation costs being recognized.

 

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Stock Ownership Requirements

 

The Board of Directors has encouraged its members to acquire and maintain stock in the Company to link the interests of such persons to the stockholders. However, the Board of Directors has not established stock ownership guidelines for members of the Board of Directors or the executive officers.

 

The Company has not adopted any other bonus, profit sharing, or deferred compensation plan.

 

The following table sets forth, for the last two years, the dollar value of all cash and non-cash compensation earned by the Company’s named executive officers.

 

SUMMARY COMPENSATION TABLE

 

Officers Name &

Principal Position

 

Year

 

Salary

($)

   

Bonus

($)

   

Stock

($)

   

Option Awards

($)

   

All Other

Compensation ($)

   

Total

($)

 

Robin Eves, Pres and CEO (1)

 

2018

    519,750       259,875       271,121       -       -       1,050,746  
   

2017

    507,350       100,612       -       -       -       607,962  
                                                     

Aiden Neary, COO/CFO (2)

 

2018

    450,000       237,500       243,795                       931,295  
   

2017

    412,500       100,612       -                       513,112  

 

(1) On July 8, 2013, Robin Eves was issued 28,571 common shares in lieu of interest on loans made to the company. The value for these shares was $19,747. As a bonus for forbearance on payment of monthly fees, Mr. Eves was approved to receive 57,143 common shares on October 7, 2013. These shares had a value of $80,000 based upon $1.40 on the day that the shares were approved. Mr. Eves also received an approval for bonus shares for the year 2013 on December 4, 2013. The amount of shares approved was 142,857 shares with a value of $165,000 based upon $1.15 per share on the date of the approval. Through December 31, 2014, Robin eves returned 1,273,360 common shares back to the Company. Mr. Eves also returned 457,143 options back to the company that were previously awarded. Mr. Eves signed a two year contract on July 1, 2017 at an annual salary of $519,750. He was also awarded 750,000 common shares upon signing and received an additional 750,000 shares, valued at $67,500 on July 1, 2018. Mr. Eves was issued 2,300,797 common shares as a bonus on May 1, 2018, valued at $203,621.

  

(2) On November 26, 2013 Aiden Neary signed a two year Executive Employment Agreement which called for 142,857 shares to be issued at the time of signing his agreement and 142,857 that vest 1 year after the date of grant. These shares were approved to be issued and the issuance was deferred until after the Company completes its planned common stock reverse.  The fair value of this award was determined to be $300,000 based upon $1.05 on the date of grant. Mr. Neary was approved to receive 28,571 shares of stock as a bonus for 2013 on December 4, 2013. These shares had a value of $33,000 based upon $1.15 per shares on the date of the approval. Through year ended December 31, 2015 Mr. Neary returned 497,527 common shares back to the company. Mr. Neary also forfeited his right of the second tranche of 142,857 shares before vested. Mr. Neary signed a two year contract on July 1, 2017 at an annual salary of $450,000. He was also awarded 750,000 common shares upon signing and received an additional 750,000 shares, valued at $67,500 on July 1, 2018. Mr. Neary was issued 1,992,032 common shares as a bonus on May 1, 2018, valued at $176,295.

  

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OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

 

The following table shows outstanding grants of stock options and grants of unvested stock awards outstanding on the last day of the fiscal year ended December 31, 2018, to each of the executive officers named in the Summary Compensation Table.

 

   

Option Awards

 

Stock Awards

 

Name

 

Number of

Securities

Underlying

Unexercised

Options

Exercisable

(#)

   

Number of

Securities

Underlying

Unexercised

Options

Unexercisable

(#)

   

Option

Exercise

Price

($)

 

 

Option

Expiration

Date

 

Number of

Shares or

Units of

Stock That

Have Not

Vested

(#)

   

Market Value

of Shares

or Units

of Stock

That Have

Not Vested

($)

 

Robin Eves

    285,714             $ 1.05  

8/1/2020

               

 

The following table sets forth, for the current year, the dollar value of all cash and non-cash compensation for the Company’s directors.

 

DIRECTOR COMPENSATION

 

Name

 

Year

 

Fees Earned or

Paid in Cash

($)

   

Stock Awards

($)

   

Option Awards

($)

   

Non-Equity

Incentive Plan

Compensation

($)

   

Non Qualified

Deferred

Compensation

Earnings

   

All Other

Compensation

($)

   

Total

($)

 

Robin Eves

 

2018

    -       -       -       -       -       -       -  

Aiden Neary

 

2018

    -       -       -       -       -       -       -  

Rob Liscouski (1)

 

2018

    25,000       8,000       -       -       -       -       37,000  

Scott Younger(2)

 

2018

    25,000       -       -       -       -       -       25,000  

Thomas Shreve(3)

 

2018

    25,000                                               25,000  

 

(1) Mr. Liscouski’s directors fees have been accrued and he was issued 100,000 shares of common stock value at $8,000

(2) Mr. Younger’s directors fees have been accrued

(3) Mr. Shreve directors fees have been accrued

 

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

The following table sets forth information, as of December 31, 2018, with respect to each person known by the Company to own beneficially more than 5% of the 174,427,854 shares of our issued and outstanding common stock, as well as the beneficial ownership of each director and officer and all directors and officers as a group. We are not aware of any present arrangements that could result in a change of control of the Company.  Except as otherwise indicated, each of the stockholders listed below has sole voting and investment power over the shares beneficially owned. Except as otherwise indicated, addresses are c/o Clean Coal Technologies, Inc., 295 Madison Avenue (12th Floor) New York, NY 10017.

  

Officers and Directors

 

Amount and Nature of Beneficial Ownership(1)

   

Percent of Class

 
                 

Robin Eves, President, CEO, Director

    16,112,497       9.2

%

Aiden Neary, COO/CFO

    20,936,213       12.0

%

Thomas Shreve, Director

    100,000       0

%

Robert Liscouski, Director

    100,000       0

%

Scott Younger, Director

    372,858       0

%

All directors and officers as a group (5 persons)

    37,621,568       21.5

%

                 

Independent holders of more than 5%

               

Tacho Sandoval

    15,875,512       10.7 %

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 

Wages and bonus payable to related parties

 

Accruals for salary and bonuses to officers and directors totaled $2,719,653 and $2,042,992 as of December 31, 2018 and 2017, respectively. As part of the separation agreement with Mr. Ponce de Leon, the Company agreed to pay him all his accrued salary within two years but agreed to pay him $200,000 by November 2015 out of revenues earned. As the Company did not earn revenue in 2015 and as at December 2018 has still not earned revenue, the obligation to Mr. Ponce de Leon of $1,496,589 is currently in default and the amount includes $269,875 in accrued interest.

 

Nonconvertible Debt

 

During the year ended December 31, 2018, the Company received $35,000 from the issuance of a related party note payable. The note is due on demand and does not accrue interest. As of December 31, 2018 and 2017, the Company had outstanding notes payable to former affiliates of the Company of $85,000 and $50,000, respectively. These notes payable of the Company are unsecured, bear no interest and are due on demand.

 

During the year ended December 31, 2018, the Company received $1,600 from a related party advance. The advance is due on demand and does not accrue interest. As of December 31, 2018 and 2017, the Company had outstanding advances payable to an officer of the Company of $1,600 and $0, respectively. The advances payable are unsecured, bear no interest and are due on demand.

 

Convertible Debt

 

During the year ended December 31, 2018, the Company borrowed an aggregate of $2,284,800, net of beneficial conversion feature of $1,907,655, under convertible notes payable from a Company with an interest owned by a significant stockholder. As of December 31, 2018 and December 31, 2017, the Company had outstanding short-term convertible notes payable of $4,660,381 and $5,484,060, net of unamortized discounts of $139,977 and $287,964, respectively and outstanding long term convertible notes payable of $5,026,800 and $1,703,905, net of unamortized discounts of $3,154,012 and $2,873,252, respectively. The convertible notes payable matured between November 2018 and December 2021 and are convertible at $0.06 per share, which was a discount to the market price on the date of issuance. Amortization expense related to debt discounts on convertible debt for the years ended December 31, 2018 and 2017 was $1,506,169 and $1,074,876 respectively.

 

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During the year ended December 31, 2018, the holder of convertible debt elected to convert a total of $280,507 in principal into 3,506,333 shares of common stock, or $0.08 per share.

 

Common Stock Issued to Related Parties

 

During the year ended December 31, 2018, the Company issued a total of 5,792,829 common shares for compensation to two officers, fair value of $514,916 is recognized as expense during 2018.

 

During the year ended December 31, 2018, the Company issued an aggregate of 19,186,333 common shares to a related party convertible note holder for conversion of $1,534,907 in principal.

 

During the year ended December 31, 2018, the Company issued 100,000 common shares for services to a member of the board of directors, fair value of $8,000 is recognized as expense during 2018.

 

Non-Binding License Agreement – related party

 

During July 2017, the Company entered into a non-binding agreement to explore the opportunity of engaging in a license of Clean Coal Pristine M technology. As part of the non-binding agreement, in September 2017, the Company received a non-refundable deposit of $100,000, subject to application to any future license agreement, from Wyoming New Power. The license agreement is for two million tons per annum. The remainder of the license fee will be due upon the signing of a definitive license agreement expected in the second/third quarter of 2019. Wyoming New Power is a related party because it is controlled by an entity that has a significant interest in Clean Coal Technologies, Inc.

 

Director Independence

 

Our Board is not subject to any independence requirements. However, our Board has reviewed the independence of its directors under the requirements set forth by the NASDAQ Stock Market. Messrs. Eves and Neary are officers of the Company and therefore not deemed independent directors.  Mr. Liscouski, Dr. Younger and Mr. Shreve are deemed to be independent directors.

 

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

 

Fees billed to the Company by MaloneBailey, LLP

 

   

2018

   

2017

 

 (1) Audit Fees

  $ 48,000     $ 51,000  

 (2) Tax Fees

  $ -     $ -  

 (3) Other Fees

  $ -     $ -  

 

All audit and non-audit services and fees are approved by the Board of Directors.

 

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PART IV

 

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 

(a) Documents filed with this report.

 

1. Financial Statements:

 

See Index to Financial Statements on page 20.

 

2. Financial Statement Schedules:

 

Financial statement schedules are omitted because they are not required or are not applicable or the required information is shown in the financial statements or notes thereto.

 

3. Exhibits:

 

The exhibits to this report are listed on the Exhibit Index below.

 

(b) Description of exhibits

 

3.1(1)

Articles of Incorporation

3.2(2)

Amended and Restated Bylaws

4.1(3)

Specimen stock certificate

14(4)

Code of Business Conduct and Ethics

31.1

Certification of Chief Executive Officer in accordance with 18 U.S.C. Section 1350

31.2

Certification of Chief Financial Officer in accordance with 18 U.S.C. Section 1350

32.1

Certification of Chief Executive Officer in accordance with 18 U.S.C. Section 1350

32.2

Certification of Chief Financial Officer in accordance with 18 U.S.C. Section 1350

101.INS

XBRL Instance Document

101.SCH

XBRL Taxonomy Extension Schema Document

101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

XBRL Taxonomy Extension Label Linkbase Document

101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document

 

(1) Filed with Registrant’s Form 10, January 14, 2009, Certificate of Amendment, June 27, 2012, filed with this Report.

(2) Filed with Registrant’s Form 8-K, December 6, 2012.

(3) Filed with Registrant’s Form 10, January 14, 2009.

(4) Filed with Registrant’s Form 8-K, February 14, 2013.

 

 

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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

/s/Robin Eves

 

Dated: March 7, 2019

 

Robin Eves

CEO, President, Principal Executive Officer

 

 

 

 

 

 

Dated: March 7, 2019

 

/s/Aiden Neary

 

 

 

Aiden Neary

CFO, Principal Financial Officer

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on the 7th day of March 2019.

 

/s/Robin Eves

 

/s/Scott Younger

 

Robin Eves, CEO, President and Director

 

Scott Younger, Director

 

 

 

 

 

/s/Robert Liscouski

 

/s/Thomas Shreve

 

Robert Liscouski, Director

 

  Thomas Shreve, Director

 

 

 

 

 

/s/Aiden Neary

 

 

 

Aiden Neary, COO, CFO and Director

 

 

 

 

 

 

  

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