AUSCRETE CORPORATION The Company's financial statements have been presented on the basis that it will
continue as a going concern. The Company has not generated revenues from
construction related operations to date. The Company has an Accumulated deficit
of
The Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company's future financing requirements.
No assurance can be given that additional financing will be available when needed or that such financing will be available on terms Acceptable to the Company. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty.
NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS
Update 2020-06-Debt-Debt with Conversion and Other Options (Subtopic 470-20) and
Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40):
Accounting for Convertible Instruments and Contracts in an Entity's Own Equity.
This was issued in August of 2020 and will become effective for fiscal years
beginning after
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NOTE 4 - RELATED PARTY TRANSACTIONS
Though the company has established banking credit cards to assist with the normal everyday purchases and payments of corporate needs such as utilities etc., The CEO and other involved parties often use their own cards for this purpose and, to represent this, the company has a continuous Related Party Advances section in its financial statements. This is adjusted typically at the end of each reporting period.
As of
NOTE 5 - PROPERTY, INVENTORY AND EQUIPMENT
Notes to Inventory Type and Value:
Inventory consists of Finished Product and Raw Materials that are valued at the lower of cost or market.
Raw Materials:
Raw materials consist of rebar, insulation, surfactant, powdered cement,
threaded inserts and sundry items. The cost is based on the cost of purchase
from a non-related supplier. As of
Property and Equipment at
September 30, December 31,
2022 2021
Capital Equipment $ 80,554 $ 80,554
Vehicles 6,344 6,344
Accumulated Depreciation (55,661 ) (46,705 )
Net Fixed Assets $ 31,237 $ 40,193 Depreciation expense for the three months ended
Depreciation expense for the nine months ended
NOTE 6 - EQUITY Common Stock:
During the Period
On
The following table is a list of the foremost 6 shareholders of the Company as ofSeptember 30, 2022 . NAME ADDRESS Number of Shares 1. John Sprovieri PO Box 813,Rufus, OR 97050 40,675,897
2.
2,084,557
3. Kathleen D Jett PO Box 846,
6,025,352
4. Kimberly Grimm 15011 SE Mt Royale Ct. Milwaukie, OR 97267. 3,275,120
5. Michael Young 4405 H'way 30, The Dalles, OR. . 1,100,000
6. William S Beers PO Box 825, Rufus, OR 97058 1,110,200
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Warrants
On
Weighted Warrants Weighted
Warrants - Average exercisable - Average
Common Share Exercise Common Share Exercise
Equivalents price Equivalents price
Outstanding December 31,
2020 - $ - - $ -
Additions
Granted 2,000,000 0.30 2,000,000.00 0.30
Expired - - -
Exercised - - - -
Outstanding December 31,
2021 2,000,000 $ 0.30 2,000,000 $ 0.30
Additions
Granted - - -
Expired (2,000,000 ) - (2,000,000 )
Exercised - - - -
Outstanding September
30, 2022 - $ - - $ -
The warrants contained a down round feature that were triggered during 2020, and
the result
NOTE 7 - INCOME TAXES
We currently have no current tax liability, as we have had limited revenue and incurred losses since inception.
On
Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes - Recognition. Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end. A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the "more likely than not" standard required by ASC 740-10-25-5.
Deferred income tax amounts reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes.
During the Period
During the Period
As of
However, due to the uncertainty of future events, we have booked valuation
allowance of
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September 30, December 31,
2022 2021
Deferred Tax Asset $ 1,969,764 $ 1,948,124
Valuation Allowance (1,969,764 ) (1,948,424 )
Deferred Tax Asset (net) $ - $ -
The Company is subject to tax in the
NOTE 8 - NOTES PAYABLE AND DERIVATIVE LIABILITIES
On
On
On
On
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On
On
As a result of the convertible notes we recognized the embedded derivative liability on the date that the note was convertible. We also revalued the remaining derivative liability on the outstanding note balance on the date of the balance sheet. The inputs used were a weighted volatility of 286% and a risk-free discount rate of 2.44%
The convertible notes have interest rates that range from 8% to 12% per annum
and default rates that range from 12% to 24% per annum. The maturity dates range
from six months to one year. The conversion rates range from 55% discount to the
market to 62% discount to the market. As of
The remaining derivative liabilities valued using the level 3 inputs in the fair
value hierarchy were:
September 30, December 31,
2022 2021
Derivative Liabilities on Convertible Loans:
Outstanding Balance 113,948 295,306
NOTE 9 - COMMITMENTS
The company maintains a month-to-month lease agreement on a 8,000 sq. ft.
facility located in outer Goldendale and monthly lease cost is
As of
NOTE 10 - SUBSEQUENT EVENTS
Subsequent to
In accordance with ASC 855, the Company has analyzed its operations subsequent
to
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward Looking Statements
Readers of this discussion are advised that the discussion should be read in
conjunction with the financial statements of Registrant (including related notes
thereto) appearing elsewhere in this Form 10-
Although Registrant believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties, which may cause the actual results to differ materially from those anticipated in the forward-looking statements. Such factors include, but are not limited to, the following: general economic and business conditions, which will, among other things, affect demand for housing, the availability of prospective buyers; adverse changes in Registrant's real estate and construction market; including, among other things, competition with other manufacturers, risks of real estate development and acquisitions; governmental actions and initiatives; and environmental/safety requirements.
Results of Operations
There were no material operational changes from the last financials of
Net cash used in operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
We have had minimal operating activity since inception of the company in 2010.
Our 2022 short-term obligations are being covered by funding received from
convertible notes. with a total value of
As of
Overview
large panels in mass production format. The house is very quickly constructed on site to produce an attractive and functional site-built home, a home that will stay where it is put through all kinds of adverse weather and age conditions. It will not burn, is not affected by insect infestation or rot, it saves extensively on energy costs and has very low maintenance needs.
Financing
Subsequently the company had an S-1 become Effective on
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The company has been quoted on the OTCQB Bulletin Board under the symbol "ASCK"
since
Financial Statements in this document represent the full results of the company
during the nine month period to
Marketing
Principal marketing efforts will be initially aimed at leveraging specific contacts and relationships that have developed over the last 12 years since the inception of the founders' pilot plant. The company has interviewed and chosen an experienced sales person who will have the luxury of dealing with existing contacts as well as the multitude of inquiries received every week.
Operations Management
The Auscrete Team will comprise of a minimal tiered management structure that enables control and knowledge to be firmly at the hands of senior management ensuring rapid and simplified direct reporting to action.
Under control of the CEO will be marketing, manufacturing operations, design
architecture and engineering, administration and safety compliance.
Additionally, the Construction Manager will oversee
Operations
Design and Engineering will prepare new design concepts and adapt customer's
designs, either residential or commercial, to the
The construction manager will be responsible for liaising with contractors, developers and other customers to ensure the satisfactory completion of their contract. As well, the company will have its own construction division that will not conflict with other contractors but will enable the company the ability to carry out construction operations where no alternative exists. The construction manager will also oversee these operations.
Future Strategy
The company is promoting a product that will not only make housing affordable but also offers some luxuries as well, such as incorporated heat pump/air conditioning units that would not be available in other houses at such comparable pricing. By constructing with the Auscrete Building System, those luxuries will result in lower cost utilities and a comfortable 'feel' to the living environment, as can be achieved with a product offering excellent thermal and soundproofing qualities as well as superb fire resistance.
Developers and contractors will offer the homes as complete ready constructed site-built units on suitable land. They are NOT and will not be offered under the banner of such categories as 'pre-fabricated', 'modular" or 'factory built' homes. They are just plain good value masonry homes built of a time proven product, concrete.
Although
The company plans on selling most of its output to developers, contractors and
builders who will purchase the complete set of wall, roof and interior panels
from
The Plant's specialized line equipment installation has been completed with end line product fabrication meeting the Company's expectations in high construction standards. The Company has made further equipment purchases to support its machine shop which will allow it to build additional much needed casting tables amongst other production plant assets.
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Housing construction planning is currently in a number of project stages. The
Company's Marketing efforts have recently diversified to also include designs of
small dwellings sometimes referred to as "
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