As Filed with the Securities and Exchange Commission on ~~November~~August 23, ~~2020~~2021

File No:000-55235

~~United States~~UNITED STATES

~~Securities and Exchange Commission~~SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDING ~~SEPTEMBER~~JUNE 30, ~~2020~~2021

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

For the transition period from ~~_____to_____~~ to

Commission file number: 000-55235

ABCO ENERGY, INC.

~~(Name~~(Name of registrant as specified in its Charter)

Nevada	46-5342309
(State of Incorporation)	(IRS Employer Identification No.)

2505 ~~No.~~N Alvernon Way, Tucson, AZ	85712
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

~~520-777-0511~~

(520) 777-0511

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
COMMON STOCK	ABCE	~~PINK MARKET~~OTCPINK

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definition of “law accelerated filed,” “accelerated filed,” “Smaller reporting company,” and “emerging growth company” in Rule 12b 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 not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act subsequent to the distribution of securities under a plan confirmed by the court. Yes ☐ No ☐☒ N/A

APPLICABLE ONLY TO CORPORATE ISSUERS:

As of ~~November~~August 23, ~~2020,~~2021, we had ~~2,687,999,095~~55,680,438 shares of common stock issued and outstanding.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements	3

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3. Quantitative and Qualitative Disclosures about Market Risk	24

Item 4. Controls and Procedures	24

PART II. OTHER INFORMATION

Item 1. Legal Proceedings	25

Item 1A. Risk Factors	25

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds	25

Item 3. Defaults upon Senior Securities	25

Item 4. Mine Safety Disclosures	25

Item 5. Other Information	25

Item 6. Exhibits	26

Signatures	27

~~Table of Contents~~

PART 1 – FINANCIAL INFORMATION

Item 1.Financial Statements

ABCO ENERGY, INC.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE ~~NINE~~SIX MONTHS ENDED JUNE 30, 2021

AND FOR THE YEAR ENDED DECEMBER 31, 2020

~~SEPTEMBER 30, 2020~~

Consolidated Balance Sheets: As of ~~September~~June 30, ~~2020~~2021 (Unaudited), and as of December 31, ~~2019~~2020 (Audited)	4

Consolidated Statements of Operations: For the Three and Six Months Ended ~~September~~June 30, ~~2020~~2021 and ~~September~~June 30, ~~2019 and for the Nine months ended September 30, 2019 and September 30, 2018~~2020 (Unaudited)	5

Consolidated Statement of Shareholders ~~Equity for~~Equity: For the ~~Nine~~Six Months Ended ~~September~~June 30, 2021 and June 30, 2020 ~~and September 30, 2019 (audited)~~(Unaudited)	6

Consolidated Statements of Cash Flows: For the ~~Nine~~Six Months Ended ~~September~~June 30, ~~2020~~2021 and ~~September~~June 30, ~~2019~~2020 (Unaudited)	7

Notes to the Consolidated Financial Statements (Unaudited)	8

INTRODUCTORY STATEMENT

The Form 10-Q below has not been reviewed by the Company’s auditors. Management or it’s representatives have made numerous attempts to contact the auditors about their required review of the Form 10-Q through numerous telephone calls, texts and emails to the Auditors but they have not responded to any such attempted communications. Management determined that because this Form 10-Q has been thoroughly vetted by Management and its internal accountants, it is in the best interest of shareholders to have the Company’s up-dated results from current operations contained in the Form 10-Q be given to them at this time without the Auditor’s usual review. Efforts to contact the Auditors continue unabated.

Table of Contents

ABCO ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

ASSETS

September 30, 2020
Unaudited

December 31, 2019
Audited

Current Assets

Cash
$ 36,644 $ 12,620
Accounts receivable on completed projects
31,242 30,408
Costs and estimated earnings on contracts in progress
- 243,693
Amortizable original issue discounts on debt
32,213 89,561
Total Current Assets
100,099 376,282
Fixed Assets

Real Estate, Vehicles, furniture & equipment – net of accumulated depreciation
354,748 354,938
Other Assets

Investment in long term leases
3,995 $ 4,136
Security deposits
2,700 5,200
Total Other Assets
6,695 9,336
Total Assets
$ 461,542 $ 740,556

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable and accrued expenses
$ 590,561 $ 583,700
Costs and estimated earnings on contracts in progress
189,532 -
Short-term notes payables
171,805 436,267
Excess billing on contracts in progress
194,401 76,052
Derivative liability on convertible debentures
143,946 97,974
Notes payable – from officers
323,258 248,558
Convertible debenture
324,499 472,971
Current portion of long term debt
16,717 18,860
Total Current Liabilities
1,954,719 1,934,382

Long term debt, net of current portion
561,899 300,000
Total Liabilities
2,516,618 2,234,382

Commitments and contingencies
- -

Stockholders’ Deficit:

Preferred stock, 100,000,000 shares authorized, $0.001 par value, and 30,000,000 shares issued and outstanding at September 30, 2020 and 30,000,000 at December 31, 2019.
30,000 30,000
Common stock 5,000,000,000 shares authorized, $0.001 value, and 1,516,109,317 Issued and outstanding at September 30, 2020 and 150,590,887 outstanding at December 31, 2019, respectively.
1,516,109 150,591
Common shares sold not issued 5,000,000 at September 30, 2020 and -0- at December 31, 2019
5,000 -
Additional paid-in capital
3,754,485 4,887,091
Accumulated deficit
(7,360,670
)
(6,561,508
)
Total Stockholders’ Deficit
(2,055,076
)
(1,493,826
)
Total Liabilities and Stockholders’ Deficit
$ 461,542 $ 740,556

ASSETS	June 30, 2021 Unaudited			December 31, 2020 Audited
Current Assets
Cash	$	42,180		$	54,268
Accounts receivable on completed projects		37,231			43,221
Costs and estimated earnings on contracts in progress		211,199			319,001
Amortizable original issue discount		26,773			0
Total Current Assets		317,383			416,490
Fixed Assets
Fixed assets – net of accumulated depreciation		380,814			393,887
Other Assets
Investment in long-term leases		3,787			3,995
Total Other Assets		3,787			3,995
Total Assets	$	701,984		$	814,372

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses	$	568,763		$	526,981
Short term notes payable		155,979			347,459
Excess billing on contracts in progress		245,369			558,907
Notes payable to related parties		303,194			311,340
Debentures payable		165,535			153,817
Current portion of long-term debt		44,022			27,702
Total Current Liabilities		1,482,862			1,926,206

Long term debt, net of current portion		512,388			472,293
Total Liabilities		1,995,250			2,398,499

Commitments and contingencies		-			-

Stockholders’ Deficit:
Preferred stock, 100,000,000 shares authorized, $0.001 par value, and 30,000,000 shares issued and outstanding at June 30, 2021 and 30,000,000 at December 31, 2020		30,000			30,000
Common stock 2,000,000,000 shares authorized, $0.001 value, and 40,906,705 and outstanding at June 30, 2021 and 15,702,037 outstanding at December 31, 2020, respectively.		40,906			15,702
Additional paid-in capital		5,771,278			5,456,438
Accumulated deficit		(7,135,450	)		(7,086,267	)
Total Stockholders’ Deficit		(1,293,266	)		(1,584,127	)
Total Liabilities and Stockholders’ Deficit	$	701,984		$	814,372

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

ABCO ENERGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE ~~MONTHS~~ AND ~~NINE~~SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2019~~ 2021AND ~~2018~~2020

(UNAUDITED)

For the Three Months Ended

For the Nine Months Ended

September 30,
2020

September 30,
2019

September 30,
2020

September 30,
2019

Revenues
$ 246,102 $ 512,988 $ 768,133 $ 1,626,614

Cost of Sales
281,419 325,366 715,739 1,004, 252

Gross Profit
(35,317
)
187,622 52,394 622,362

Operating Expenses:

Payroll
9,645 90,720 94,126 304,309
Payroll taxes
30,085 12,070 57,215 46,258
Share based expense
- - 14,500 -
Consulting
25,019 15,067 45,028 39,604
Corporate expense
13,998 14,962 32,449 34,055
Professional fees
45,273 21,301 92,564 96,733
Rent
8,311 8,362 25,536 26,137
Insurance
40,429 12,176 60,239 49,064
Other administrative expenses
17,099 31,848 233,612 112,212
Total operating expense
189,859 206,506 655,269 708,372

Net income (Loss) from operations
(225,176
)
(18,884
)
(602,875
)
(86,010
)

Other expenses

Interest on notes payable
(20,975
)
(105,010
)
(37,657
)
(210,998
)
Loss on note issuance derivatives
(25,836
)

Change in Derivative Gain (Loss)
(157,575
)
64,093 (157,575
)
(113,840
)
Finance Fees – derivatives
1,605 (57,075 ) (1,055
)
(57,075
)
Gain (Loss) on extinguishment of debt
(244,712
)
Total other expenses
(202,781
)
(97,992
)
(196,287
)
(626,625
)

Net (Loss) before provision for income taxes
(427,957
)
(116,876
)
(799,162
)
(712,635
)

Provision for income tax
- - - -

Net (loss)
$ (427,957
)
$ (116,876
)
$ (799,162
)
$ (712,635
)

Net (loss) Per Share (Basic and Fully Diluted)
$ (.01
)
$ (.01
)
$ (.01
)
$ (.01
)

Weighted average number of common shares used in the calculation – Adjusted for reversal
1,280,322,222 63,392,630 835,850,102 47,639,460

	For the Three Months Ended						For the Six Months Ended
	JUNE 30, 2021			JUNE 30, 2020			JUNE 30, 2021			JUNE 30, 2020

Revenues	$	432,673		$	207,239		$	768,399		$	522,031

Cost of Sales		159,297			220,150			453,439			434,320

Gross Profit		273,376			(12,911	)		314,960			87,711

Operating Expenses:
Payroll		48,346			46,268			109,130			84,481
Consulting expense		32,000			499			36,000			20,009
Corporate expense		0			9,511			24,120			18,451
Insurance		6,974			13,448			16,264			19,810
Professional fees		24,695			33,762			34,600			47,291
Rent		0			8,310			0			17,225
Other selling and administrative expenses		74,911			193,433			132,976			258,143
Total operating expense		186,926			305,231			353,090			465,410

Net income (Loss) from operations		86,450			(318,142	)		(38,130	)		(377,699	)

Other expenses
Interest on notes payable		(18,112	)		(13,602	)		(31,156	)		(16,682	)
Stock based compensation		(76,321	)					(136,321	)		0
Change in Derivative Gain (Loss)		0			315,973			0			25,836
Derivative amortization - interest expense		0			(2,660	)		(49,623	)		(2,660	)
Gain (Loss) on extinguishment of debt		52,501			0			206,047			0
Total other expenses		(41,932	)		299,711			(11,053	)		6,494

Net income (Loss) before provision for income taxes		44,518			(18,431	)		(49,183	)		(371,205	)

Provision for income tax		0			0			0			0

Net income (loss)	$	44,518		$	(18,431	)	$	(49,183	)	$	(371,205	)

Net income (loss) Per Share (Basic and Fully Diluted)	$	.01		$	(.01	)	$	(.01	)	$	(.08	)

Weighted average number of common shares used in the calculation		31,599,145			3,515,077			28,304,371			4,424,634

See accompanying notes to the consolidated financial statements.

Table of Contents

ABCO ENERGY, INC.

CONSOLIDATED STATEMENT OF ~~SHAREHOLDERS~~CHANGES IN SHAREHOLDER’S EQUITY

FOR THE ~~NINE~~ SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2020~~2021 (UNAUDITED)

AND FOR THE ~~YEAR~~SIX MONTHS ENDED ~~DECEMBER 31, 2019~~

JUNE 30, 2020 (UNAUDITED)

Common Stock

Shares

Amount
$0.001
Par

Preferred
Stock

Additional
Paid in
Capital

Accumulated
Deficit

Total
Stockholders’
Deficit

Balance at December 31, 2018
32,756,288 $ 32,756 $ 30,000 $ 4,379,793 $ (5,180,431
)
$ (737,882
)
Common shares issued under private placement offering - net of expenses
4,740,000 4,740 75,516 80,256
Common shares issued for conversion of convertible debenture notes - net of expenses
113,094,599 113,095 30,132 143,227
Re-class derivative liability from conversion
401,650 401,650
Net (loss) for the year
(1,381,327
)
(1,381,327
)
Balance at December 31, 2019
150,590,887 $ 150,591 $ 30,000 $ 4,887,091 $ (6,561,508
)
$ (1,493,826
)
Common shares issued for conversion of convertible debenture notes - net of expenses
1,365,518,430 1,365,518 (1,090,281
)
275,237
Shares to be issued for compensation
5,000,000 5,000 9,500 14,500
Expenses of capital stock issuances
(23,000
)
(23,000
)
Derivative changes to APIC
(28,825
)
(28,825
)
Net (loss) for the nine months ended September 30, 2020
(799,162
)
(799,162
)
Balance at September 30 2020
1,521,109,317 $ 1,521,109 $ 30,000 $ 3,754,485 $ (7,360,670
)
$ (2,055,076
)

SIX MONTHS ENDED JUNE 30, 2021

	Common Stock
	Shares		Amount $0.001 Par		Preferred Stock		Additional Paid in Capital			Accumulated Deficit			Total Stockholders’ Deficit
Balance at January 1, 2021		15,702,037	$	15,702	$	30,000	$	5,456,438		$	(7,086,267	)	$	(1,584,127	)
Common shares issued for conversion of convertible debenture notes - net of expenses		1,747,753		1,748				33,906						35,654
Common Shares issued for warrants net of expenses		6,319,930		6,320				53,404						59,724
Restricted shares issued for insider compensation		5,000,000		5,000				55,000						60,000
Rounding from transfer agent for reverse split		111,410		111				(111	)					-
Shares issued for note payments		5,360,536		5,360				67,330						72,690
Shares issued for warrants		5,545,039		5,545				39,231						44,776
Shares issued for reserve and commitment fees on debt issue		1,120,000		1,120				66,080						67,200
Net loss for the six months ended June 30, 2021											(49,183	)		(49,183	)
Balance at June 30, 2021		40,906,705	$	40,906	$	30,000	$	5,771,278		$	(7,135,450	)	$	(1,293,266	)

SIX MONTHS ENDED JUNE 30, 2020

Balance at January 1, 2020	885,829	$	886	$	30,000	$	5,036,796		$	(6,561,508	)	$	(1,493,826	)
Adjustment to prior year balances for reversal of shares on 1-4-21 net of expenses							(1,055,891	)					(17,500	)
Common shares issued for conversion of convertible debenture notes - net of expenses	5,229,084		5,229				149,203			(250	)		154,182
Restricted Shares issued for insider compensation	29,412		29				14,471						14,500
Derivative changes to paid in capital							55,471						55,471
Net (loss) for the six months ended June 30, 2020										(371,205	)		(371,205	)
Balance at June 30, 2020	6,144,325	$	6,144	$	30,000	$	4,200,320		$	(6,932,963	)	$	(1,658,108	)

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

ABCO ENERGY, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE ~~NINE~~ SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2020~~2021 AND ~~2019~~2020

(UNAUDITED)

September 30,

September,

2020

2019

Cash Flows from Operating Activities:

Net income (loss)
$ (799,162
)
$ (712,635
)
Adjustments to reconcile net income (loss) to net cash used in operating activities:

Depreciation
6,593 7,915
Shares issued for compensation
14,500
Inventory change
- (7921
)
Change in amortizable debt discount
- 14,662
Finance fees on derivatives
1,055 57,075
Change in derivative liability
45,972 113,841
Gain or loss on extinguishment of debt
- 244,712
Changes in Accounts receivable on incomplete projects
432,391 145,542
Change in prepaid expense and OID
57,348 (23,201
)
Billings in excess of costs on incomplete projects
118,349 109,890
Accounts payable and accrued expenses
6,861 (28,398
)
Net cash used in operating activities
(116,093
)
(78,518
)

Cash flows from investing activities

Equipment purchased
(12,770
)
(2,213
)
Change in security deposits
2,500 -
Proceeds from investments in long term leases
141 6,458
Net cash provided by (used for) investing activities
(10,129
)
4,245

Cash Flows from Financing Activities:

Proceeds from sale of common stock – net of expenses
237,912 15,867
Proceeds of affiliate loans
74,700 25,417
Proceeds from merchant loans
-

209,500
Payments on merchant notes
(57,470 ) (170,517
)
Payments or proceeds from material lender – net of expenses
(206,993
)
(46,192
)
Payments or proceeds on long term debt
259,756 -
Proceeds from convertible note payable
(73,058
)
362,000
Payments and conversion of convertible notes
(84,601
)
(277,000
)
Net cash provided by financing activities
150,246 119,075

Net increase (decrease) in cash
24,024 44,802
Cash, beginning of period
12,620 67,707
Cash, end of period
$ 36,644 $ 112,509

	June 30, 2021			June 30, 2020
Cash Flows from Operating Activities:
Net income (loss)	$	(49,183	)	$	(371,205	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation		11,673			11,740
Change in derivative liability		0			(45,425	)
Shares issued to officers and consultants for services		136,321			14,500
Gain on extinguishment of debt		(206,047	)		0
Finance fees on derivatives		49,623			0

Changes in operating assets and liabilities
Changes in Accounts receivable		113,792			184,556
Change in amortizable OID		(26,773	)		9,642
Billings in excess of costs on incomplete projects		(313,538	)		97,037
Accounts payable and accrued expenses		41,782			112,751
Net cash used in operating activities		(242,350	)		13,596

Cash flows from investing activities
Change in security deposits		0			2,500
Sales of equipment		1,400			(11,397	)
Proceeds from investments in long term leases		208			132
Net cash provided by (used for) investing activities		1,608			(8,765	)

Cash Flows from Financing Activities:
Proceeds from sale of common stock – net of expenses		340,044			164,445
Proceeds from convertible notes and conversions		11,718			(73,058	)
Proceeds from financial institution loans		20,103			(98,956	)
Payments on short term debt		(191,480	)		0
Proceeds (payments) on related party notes payable		(8,146	)		65,050
Increase in loans from material lenders		0			(54,470	)
(Payments) proceeds from long term debt		56,415			117,219
Net cash provided by financing activities		228,654			120,230

Net increase (decrease) in cash		(12,088	)		125,061
Cash, beginning of period		54,268			12,620
Cash, end of period	$	42,180		$	137,681

Supplemental disclosures of cash flow information:

Cash paid for interest
$ 37,657 $ 210,998
Income taxes paid or accrued
- -
Share based compensation
$ 14,500 $ -

Cash paid for interest		$	31,156			$	16,682
Shares issued for insider compensation			136,321				14,500

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

ABCO ENERGY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE ~~NINE~~SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, 20202021 AND ~~2019~~~~AND~~

THE YEAR ENDED DECEMBER 31, ~~201~~92020

~~(UNAUDITED~~)

Note 1 – Overview and Description of the Company

ABCO Energy, Inc. was organized on July 29, 2004 and operated until July 1, 2011 as Energy Conservation Technologies, Inc. (ENYC). On July 1, 2011 ENYC entered into a share exchange agreement (SEA) with ABCO Energy, Inc. (“Company”) and acquired all the assets of ABCO. ENYC changed its name to ABCO Energy, Inc. on October 31, 2011. As a result of the SEA, the outstanding shares of ENYC as of June 30, 2011 were restated in a one for twenty three (1 for 23) reverse stock split prior to the exchange to approximately 9% of the post-exchange outstanding common shares of the Company.

On January 13, 2017, the Board of Directors of the Company approved a reverse stock split of its common stock, at a ratio of 1-for-10 (the “Reverse Stock Split”). The Reverse Stock Split became effective with FINRA (the Financial Industry Regulatory Authority) and in the marketplace on January 13, 2017 (the “Effective Date”), whereupon the shares of common stock began trading on a split adjusted basis. As a result of the Reverse Stock Split the number of authorized shares of common stock was reduced to 50,000,000 from 500,000,000 shares. The Company held a Special Meeting of Stockholders in May 2017 which authorized an amendment to the Articles of Incorporation to increase the authorized common share capital to 2,000,000,000 common shares and 100,000,000 preferred shares. Thereafter, on September 27, 2017, by written consent the holders of a majority of the outstanding shares voted to authorize an additional amendment to increase the authorized common shares to 2,000,000,000 shares.

On December 23, 2018 the Board of Directors of the Company approved a reverse stock split of its common stock, at a ratio of 1-for-20 (the “Reverse Stock Split”). The Reverse Stock Split became effective with FINRA (the Financial Industry Regulatory Authority) and in the marketplace on December 23, 2018 (the “Effective Date”), whereupon the shares of common stock began trading on a split adjusted basis.

On November 8, 2018, by written consent the holders of a majority of the outstanding shares voted to authorize an additional amendment to increase the authorized common shares to 5,000,000,000 shares. All share numbers through-out these financial statements and notes thereto have been adjusted to reflect this reverse split.

The Company is in the Photo Voltaic (PV) solar systems industry, the LED and energy efficient commercial lighting business and is an electrical product and services supplier. In 2018 ABCO entered the HVAC business with the acquisition of a small company’s assets and qualifying license. The Company plans to build out a network of operations in major cities in the USA to establish a national base of PV, HVAC, lighting and electrical service operations centers. This combination of services, solar and electric, provides the Company with a solid base in the standard electrical services business and a solid base in the growth markets of solar systems industry.

On December 13, 2020, the Board of Directors of the Company approved a reverse stock split of its common stock, at a ratio of 1-for-170 (the “Reverse Stock Split”). The Reverse Stock Split became effective with FINRA (the Financial Industry Regulatory Authority) and in the marketplace on January 4, 2021 (the “Effective Date”), whereupon the shares of common stock began trading on a split adjusted basis.

On December 23, 2018, the Board of Directors of the Company approved a reverse stock split of its common stock, at a ratio of 1-for 20 (the “Reverse Stock Split”). The Reverse Stock Split became effective with FINRA (the Financial Industry Regulatory Authority) and in the marketplace on December 23, 2018 (the “Effective Date”), whereupon the shares of common stock began trading on a split adjusted basis.

As a result of the Reverse Stock Split the number of authorized shares of common stock was reduced to 50,000,000 from 500,000,000 shares. The Company held a Special Meeting of Stockholders in May 2017 which authorized an amendment to the Articles of Incorporation to increase the authorized common share capital to 2,000,000,000 common shares and 100,000,000 preferred shares. Thereafter, on September 27, 2017, by written consent the holders of a majority of the outstanding shares voted to authorize an additional amendment to increase the authorized common shares to 2,000,000,000 shares. After the reverse split on January 4, 2021, the holders of the majority of the outstanding shares once again increased the authorized common shares to 2,000,000,000 shares.

DESCRIPTION OF PRODUCTS

ABCO sells, installs and ~~installs~~services Solar Photovoltaic electric systems that allow the customer to produce their own power on their residence or business property. These products are installed by our ~~crews~~staff and are purchased from both USA and offshore manufacturers. We have available and utilize many suppliers of US manufactured solar products from such companies as Mia Soleil, Canadian Solar, Westinghouse Solar and various Italian, Korean, German and Chinese suppliers. In addition, we purchase from several local and regional distributors whose products are readily available and selected for markets and price. ABCO offers solar leasing and long term financing programs from Service Finance Corporation, Green Sky, AEFC and others that are offered to ABCO customers and other marketing and installation organizations.

ABCO also sells and installs energy efficient lighting products, solar powered ~~street lights~~streetlights and lighting accessories. ABCO contracts directly with manufacturers and distributors to purchase its lighting products which are sold to residential and commercial customers.

ABCO has Arizona statewide approval as a registered electrical services and solar products installer and as an air conditioning and refrigeration installer. Our license is ROC 258378 Electrical and ROC 323162 HVAC and we are fully licensed to offer commercial and residential electrical services, HVAC and Solar Electric.

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ABCO ENERGY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE ~~THREE AND~~ ~~NINE~~SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2020~~2021 AND ~~2019~~

~~AND~~ THE YEAR ENDED DECEMBER 31, ~~2019~~2020

ABCO has Three subsidiaries, ABCO Solar, Inc. an Arizona Corporation which provides solar and electric services and products, Alternative Energy Finance Corporation, (AEFC) a Wyoming Company which provides funding for leases of photovoltaic systems, and ABCO Air Conditioning Services, Inc., an Arizona Corporation which sells residential and commercial air conditioning equipment and services in Arizona. In addition, AEFC has two subsidiaries, Alternative Energy Solar Fund, LLC, and Arizona limited liability ~~company~~Company that was formed to invest in solar projects and Alternative Energy Finance Corporation, LLC, an Arizona limited liability company formed so AEFC could do business in Arizona.

ABCO Solar offers solar systems “Operations and Maintenance Services” to residential and commercial customers that have solar systems built by ABCO or other solar installers. Many installers have gone out of business and ABCO’s service enables these customer’s system to continue to operate. ABCO’s service enables customers to maintain their warranties, remove and replace their systems for roof maintenance and to maintain peak efficiency. ABCO now operates and maintains systems in many cities in Arizona and intends to continue to expand this operation and maintenance segment of its business.

Note 2 – Summary of significant accounting ~~policies~~policies.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles, or “GAAP.” The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses. Intercompany transactions and balances have been eliminated. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We have identified the following to be critical accounting policies whose application have a material impact on our reported results of operations, and which involve a higher degree of complexity, as they require us to make judgments and estimates about matters that are inherently uncertain.

Cash and Cash Equivalents

There are only cash accounts included in our cash equivalents in these statements. For purposes of the statement of cash flows, the Company considers all short-term securities with a maturity of three months or less to be cash equivalents. There are no short term cash equivalents reported in these financial statements.

Fixed Assets

Property and equipment are to be stated at cost less accumulated depreciation. Depreciation is recorded on the straight-line basis according to IRS guidelines over the estimated useful lives of the assets, which range from three to ten years. Maintenance and repairs are charged to operations as incurred.

Revenue Recognition

The Company generates revenue from sales of solar products, LED lighting, installation services and leasing fees. During the last two fiscal years, the company had product sales as follows:

Sales Product and Services Description

September 30, 2020

September 30, 2019

Solar PV residential and commercial sales
$ 615,687 70
%
$ 1,574,349 98
%
Air conditioning sales and service
77,018 15
%

Energy efficient lighting & other income
75,219 15
%
51,733 2
%
Interest Income
209 -
%
532 -
%
Total revenue
$ 768,133 100
%
$ 1,626,614 100
%
Sales Product and Services Description

June30, 2021

June 30, 2020

Solar PV residential and commercial sales
$ 635,381 82
%
$ 392,441 75
%
Air conditioning sales and service
6,540 1
%
129,251 24
Energy efficient lighting & other income
126,374 17
%
0 0
%
Interest Income
104 0
%
339 1
%
Total revenue
$ 768,399 100
%
$ 522,031 100
%

The Company recognizes product revenue, net of sales discounts, returns and allowances. These statements establish that revenue can be recognized when persuasive evidence of an arrangement exists, delivery has occurred, and all significant contractual obligations have been satisfied, the fee is fixed or determinable, and collection is considered probable.

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ABCO ENERGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND
THE YEAR ENDED DECEMBER 31, 2020
Our revenue recognition is recorded on the percentage of completion method for sales and installation revenue and on the accrual basis for fees and interest income.  We recognize and record income when the customer has a legal obligation to pay.  All our revenue streams are acknowledged by written contracts for any of the revenue we record.  There are no differences between major classes of customers or customized orders.  We record discounts, product returns, rebates and other related accounting issues in the normal business manner and experience very small number of adjustments to our written contractual sales.  There are no post-delivery obligations because warranties are maintained by our suppliers. Our lease fees are earned by providing services to contractors for financing of solar systems.  Normally we will acquire the promissory note (lease) on a leased system that will provide cash flow for up to 20 years.  Interest is recorded on the books when earned on amortized leases.

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~~ABCO ENERGY, INC.~~
~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019~~
~~AND THE YEAR ENDED DECEMBER 31, 2019~~
Accounts Receivable and work-in-progress
The Company recognizes revenue upon delivery of product to customers and does not make bill-and-hold sales. Contracts spanning reporting periods are recorded on the percentage of completion method, based on the ratio of total costs to total estimated costs by project, for recognition of revenue and expenses.  Accounts receivable includes fully completed and partially completed projects and partially billed statements for completed work and product delivery. The Company records a reserve for bad debts in the amount of 2% of earned accounts receivable. When the Company determines that an account is uncollectible, the account is written off against the reserve and the balance to expense. If the reserve is deemed to be inadequate after annual reviews, the reserve will be increased to an adequate level.

Inventory
The Company records inventory of construction supplies at cost using the first in first out method. After review of the inventory on an annual basis, the Company discounts all obsolete items to fair market value and has established a valuation reserve of 10% of the inventory at total cost to account for obsolescence. As of December 31, 2019 all inventory was written ~~off. Inventory~~off resulting in balances at ~~September~~June 30, ~~2020, was~~2021 of $0 and at ~~September 30, 2019 was $61,870.~~December 31, 2020 of $0.

Income Taxes
The Company has net operating loss carryforwards as of ~~September~~June 30, ~~2020~~2021 totaling approximately ~~$4,988,933~~$4,660,540 net of accrued derivative liabilities and stock-based compensation, which are assumed to be non-tax events. A deferred 21% tax benefit of approximately ~~$1,047,676~~$978,713 has been offset by a valuation allowance of the same amount as its realization is not assured. The full realization of the tax benefit associated with the carry-forward depends predominately upon the Company’s ability to generate taxable income during future periods, which is not assured.

The Company files in the US only and is not subject to taxation in any foreign country. There are three open years for which the Internal Revenue Service can examine our tax returns so ~~2016, 2017~~2018, 2019 and ~~2018~~2020 are still open years and ~~2019~~2020 will soon replace ~~2016 when~~2018 at the ~~tax return is filed.~~end of 2021.

Fair Values of Financial Instruments
ASC 825 requires the Corporation to disclose estimated fair value for its financial instruments. Fair value estimates, methods, and assumptions are set forth as follows for the Corporation’s financial instruments. The carrying amounts of cash, receivables, other current assets, payables, accrued expenses and notes payable are reported at cost but approximate fair value because of the short maturity of those instruments. The Company evaluates derivatives based on level 3 indicators.

ASC 825 requires the Corporation to disclose estimated fair value for its financial instruments. Fair value estimates, methods, and assumptions are set forth as follows for the Corporation’s financial instruments. The carrying amounts of cash, receivables, other current assets, payables, accrued expenses and notes payable are reported at cost but approximate fair value because of the short maturity of those instruments.

The Company measures assets and liabilities at fair value based on expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale date of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.

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ABCO ENERGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND
THE YEAR ENDED DECEMBER 31, 2020
The following are the hierarchical levels of inputs to measure fair value:

Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3: Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

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~~ABCO ENERGY, INC.~~
~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019~~
~~AND THE YEAR ENDED DECEMBER 31, 2019~~
The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts payable and accrued expenses, approximate their fair values because of the current nature of these instruments. Debt approximates fair value based on interest rates available for similar financial arrangements. Derivative liabilities which have been bifurcated from host convertible debt agreements are presented at fair value. See note __11 for complete derivative and convertible debt disclosure.

Derivative Financial Instruments
Fair value accounting requires bifurcation of embedded derivative instruments such as convertible features in convertible debts or equity instruments, and measurement of their fair value for accounting purposes. In determining the appropriate fair value, the Company uses the binomial option-pricing model. In assessing the convertible debt instruments, management determines if the convertible debt host instrument is conventional convertible debt and further if there is a beneficial conversion feature requiring measurement. If the instrument is not considered conventional convertible debt, the Company will continue its evaluation process of these instruments as derivative financial instruments.

Once determined, derivative liabilities are adjusted to reflect fair value at each reporting period end with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives. In addition, the fair value of freestanding derivative instruments, such as warrants, are also valued using the binomial option-pricing model.

Stock-Based Compensation
The Company accounts for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable.
Prior Period Reclassifications
Certain prior period amounts have been reclassified to conform to current period presentation in this Report.
Effects of Recently Issued Accounting Pronouncements
The Company has reviewed all recently issued accounting pronouncements and have determined the following have an effect on our financial statements:

Stock-Based Compensation
The Company accounts for employee and non-employee stock awards under ASC 505 and ASC 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable. For employees, the Company recognizes compensation expense for share-based awards based on the estimated fair value of the award on the date of grant and the probable attainment of a specified performance condition or over a service period.

Per Share Computations
Basic net earnings per share are computed using the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and the dilutive potential common shares outstanding during the period. All shares were considered anti-dilutive at March 31, 2021 and December 31, ~~2019.~~2020. Potentially dilutive share issues are: 1) all unissued common shares sold, 2) all convertible debentures have a possibility of a large number of shares being issued and would result in a larger number of shares issued if the price remains low, 3) the preferred stock of the company held by insiders is convertible into common shares and the preferred stock is voted on a 20 to 1 basis, 4) all options issued. All of the above are potential dilutive items.

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ABCO ENERGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND
THE YEAR ENDED DECEMBER 31, 2020
Note 3 – Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. Since its inception, the Company has been engaged substantially in ~~financing activities~~marketing and ~~developing its business plan and marketing.~~operations. The Company incurred a net loss of ~~$(799,162),~~$(49,183) for the period ended June 30, 2021 and $(371,205) for the six months ended June 30, 2020. The net cash flow used in operations was ~~$(116,093) and~~$(242,350) for the period ended June 30, 2021and its accumulated net losses from inception through the period ended ~~September~~June 30, ~~2020~~2021 is ~~$(7,360,670)~~$(7,135,450), which raises substantial doubt about the Company’s ability to continue as a going concern. In addition, the Company’s development activities since inception have been financially sustained through capital contributions from shareholders.

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~~ABCO ENERGY, INC.~~
~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019~~
~~AND THE YEAR ENDED DECEMBER 31, 2019~~
The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock or through debt financing and, ultimately, the achievement of significant operating revenues. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might result from this uncertainty.
Note 4 – Accounts Receivable

Accounts receivable as of ~~September~~June 30, ~~2020~~2021 and ~~2019,~~December 31, 2021 consists of the following:

Description

September 30, 2020

September 30, 2019

Accounts receivable on completed contracts
$ 31,242 $ 30,408
Costs and estimated earnings on contracts in progress
- 243,693
Total
$ 31,242 $ 274,101
Description

June 30, 2021

December 31, 2020

Accounts receivable on completed contracts
$ 37,231 $ 43,221
Costs and estimated earnings on contracts in progress
211,199 319,001
Total
$ 248,430 $ 362,222

Costs and Estimated Earnings on projects are recognized on the percentage of completion method for work performed on contracts in progress at ~~September~~June 30, ~~2020~~2021 and ~~September 30, 2019.~~December 31, 2020.

The Company records contracts for future payments based on contractual agreements entered into at the inception of construction contracts. Amounts are payable from customers based on milestones established in each contract. Larger contracts are billed and recorded in advance and unearned profits are netted against the billed amounts such that accounts receivable reflect current amounts due from customers on completed projects and amounts earned on projects in process are reflected in the balance sheet as costs and estimated earnings in excess of billings on contracts in progress. Excess billings on contracts in process are recorded as liabilities and were ~~$194,401~~$245,369 at ~~September 30, 2020~~June 30,2021 and ~~$76,052~~$558,907 at ~~September 30, 2019.~~December 31, 2020.
Note 5 – Inventory

~~Note 5 – Inventory~~
Inventory of construction supplies not yet charged to specific projects was ~~$0.00~~$0 at ~~September~~June 30, ~~2020,~~2021, and ~~$ 61,870~~$0 as of ~~September 30, 2019.~~December 31, 2020. The Company values items of inventory at the lower of cost or net realizable value and uses the first in first out method to charge costs to jobs. The Company wrote off all of its inventory during ~~2019.~~2018.
Note 6 – Security deposits and Long Term Commitments

~~The Company has paid security deposits on the rented spaces it occupies for offices and warehouse which total $2,700 on September 30,~~During October 2020, ~~and at December 31, 2019. The Company also made a deposit in the amount of $2,500 on a business purchase that was abandoned and this deposit was refunded during 2020.~~
~~On May 1, 2014, the Company rented office and warehouse space at 2100 N. Wilmot #211, Tucson, Arizona 85712. This facility consists of 3,600 square feet.~~The Company now has one month remaining on a one year lease with monthly rent of $2,741 which was renewed on November 1, 2019 to a term of one year. ABCO has a forward commitment of $2741 for the next four months. Subsequent to this statement, the Company moved into its own building that was purchased in December 2019 and abandoned the Wilmot Avenue rental space. It now occupies 4,800 square foot of office and warehouse space and one-half acre of land. There are no security deposits.
Note 7 – Investment in long term leases

Long term leases recorded on the consolidated financial statements were ~~$3,995~~$3,787 at ~~September~~June 30, ~~2020~~2021 and ~~$4,136~~$3,995 at December 31, ~~2019~~2020, respectively. ~~During the year ended December 31, 2019 one~~One of the leases owned by AEFC was paid in full by the customer ~~and~~during the ~~Company recorded net proceeds of $6,376.~~year ended December 31, 2020.

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ABCO ENERGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE ~~THREE AND NINE~~SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2020~~2021 AND ~~2019~~
~~AND~~ THE YEAR ENDED DECEMBER 31, ~~2019~~2020
Note 8 – Fixed Assets

~~Note 8 – Fixed Assets~~
The Company has acquired all its office and field work equipment with cash payments and financial institution loans. The total fixed assets consist of land and building, vehicles, office furniture, tools and various equipment items and the totals are as follows:

September 30,

December 31,

Asset

2020

2019

Land and Building
$ 326,400 $ 326,400
Equipment
134,326 121,556
Accumulated depreciation
(105,978 ) (93,018
)
Fixed Assets, net of accumulated depreciation
$ 354,748 $ 354,938
Asset

June 30, 2021

December 31, 2020

Land and Building
$ 326,400 $ 326,400
Equipment
172,591 173,991
Accumulated depreciation
(118,177
)
(106,504
)
Fixed Assets, net of accumulated depreciation
$ 380,814 $ 393,887

Depreciation ~~expenses~~expense for the six months ended ~~September~~June 30, 2021 and the year ended December 31, 2020 was $11,673 and ~~2019 was $6,593 and $7,915~~$13,486, respectively.

On December 31, 2019, the Company purchased a building at 2505 N Alvernon consisting of 4,800 SF building and approximately ½ acre of land. The property was financed by a $25,000 loan from Green Capital (GCSG) and a mortgage from the seller for the $300,000 balance. The purchase price was $325,000 plus closing costs of $1,400.

Note 9 – Notes Payable ~~from Officers and~~to Related ~~Party Transactions~~Parties

~~Related party notes~~Notes payable as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019~~2020 consists of the following:

Description

September 30,
2020

December 31,
2019

Notes payable – Director bearing interest at 12% per annum, unsecured, demand notes.
$ 60,000, $ 60,000
Note payable – Mr. O’Dowd bearing interest at 12% per annum, unsecured, demand note
61,052 61,052
Note payable – other bearing interest at 12% per annum, unsecured, demand note.
202,206 127,506
Total
$ 323,258 $ 248,558
Description

June 30, 2021

December 31, 2020

Note payable – Director bearing interest at 12% per annum, unsecured, demand notes.
$ 60,000 $ 60,000
Note payable – President bearing interest at 12% per annum, unsecured, demand note.
243,194 251,340
Total
$ 303,194 $ 311,340

The first note in the amount of $60,000 provides for interest at 12% per annum and is unsecured. This note ~~resulted in an~~has unpaid accrued interest ~~charge~~ of ~~$41,448 accrued~~$46,835 and ~~unpaid~~$43,263 at ~~September~~June 30, ~~2020~~2021 and ~~$36,061 at~~ December 31, ~~2019.~~2020, respectively.

The second note has a current balance of ~~$61,052~~$243,194 and unpaid accrued interest of $66,158 as of ~~September~~June 30, ~~2020.~~2021. The note is ~~an unsecured~~a secured demand note covering all assets of the Company and bears interest at 12% per annum. ~~This~~On April 1, 2021, the promissory note ~~resulted~~payable to the President of the Company in anthe amount of $314,636 of principal and interest ~~charge~~was converted into a secured note covering all assets of ~~$32,848 accrued and unpaid at September 30, 2020 and $27,368 at December 31, 2019.~~
the Company. The ~~third note is from a related party and has a current balance of $202,206 as of December 31, 2020. The note is an unsecured demand note and~~Note bears interest at the rate 12% per ~~annum. This note resulted~~annum and is due on demand. Financing statement s are expected to be filed in ~~an accumulated interest charge of $45,516 accrued~~Pima County, AZ and ~~unpaid at September 30, 2020 and $28,556 at December 31, 2019.~~ in Las Vegas County, NV covering the assets which are securing this Note.

The combined total funds due to Officers and ~~related parties~~Directors totaled ~~$443,069~~$416,187 with ~~principle~~principal and interest at ~~September~~June 30, ~~2020.~~2021.

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~~ABCO ENERGY, INC.~~
~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019~~
~~AND THE YEAR ENDED DECEMBER 31, 2019~~
Note 10 – Short Term Notes Payable

Description

September 30,
2020

December 31,
2019

Bill’d Exchange, LLC, an equipment capital lender, initial financing August 2, 2019, finances equipment for commercial contracted customers in varying amounts
$ 32,859 $ 239,852
Merchant loan – Knight Capital Funding, LLC
38,694 61,747
Merchant loan – Pearl lending
51,750 65,664
Merchant loan – Green Capital
14,748 35,250
Private money loan from Perfectly Green Corporation, borrowed January 22, 2018, bearing interest at 3% per annum, unsecured (3) demand note-Original balance $60,000, current balance
33,754 33,754
Total
$ 171,805 $ 436,267
Description

June 30, 2021

December 31, 2020

Bill’ d Exchange, LLC, an equipment capital lender, initial financing August 2, 2019, finances equipment for commercial contracted customers in varying amounts
$ 20,000 $ 31,462
Merchant loan – Knight Capital Funding, LLC
0 33,694
Merchant loan – Pearl lending
0 51,750
Merchant loan – Green Capital
7,747 11,748
Private money loan from Perfectly Green Corporation
0 33,754
Private money loan from prior officer of ABCO
0 61,052
PPP loan – SBA loan payable
0 123,999
PPP loan -SBA loan payable
128,232 0
Total
$ 155,979 $ 347,459

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~~Bill’d~~
ABCO ENERGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND
THE YEAR ENDED DECEMBER 31, 2020
Bill’ d Exchange, LLC, a customer equipment capital lender, made their initial financing on August 2, 2019. They finance equipment for commercial contracted customers in varying amounts. These loans bear interest at varying rates and are paid weekly for the amount of interest due on the account at each date. Each loan is secured by the accounts receivable from the customer and by personal guarantee of an affiliated officer of ABCO Solar, Inc. Unpaid principal balance on this note at June 30, 2021 and December 31, 2020 was $20,000 and $31,462, respectively.

On January 30, 2019, the Company borrowed $153,092 including principal and interest from Knight Capital Funding, LLC, and [“KCF”] bearing interest at 23% per annum, unsecured. This loan was refinanced on August 10, 2019 and replaced with a new loan of $144,900 from KCF. The balance and accrued interest at December 31, 2019 was $61,747. On February 18, 2020 ABCO defaulted on this loan due to the reduction in business from Covid-19. AsOn March 29, 2021, the Company made a final negotiated settlement payment on this note for $22,000 and recorded gain on extinguishment of debt of approximately $14,000 during the ~~date~~six months ended June 30, 2021. Outstanding principal balance as of ~~filing this report, no arrangements for resuming payments had been accomplished. The last adjusted balance at the date of default~~June 30, 2021 and December 31, 2020 was ~~$38,694.~~$-0- and $33,694, respectively.

On December 6, 2019, the Company borrowed $52,174 from Pearl Delta Funding that contained a repayment in the amount of $72,000 in 160 payments of $450. This unsecured note bears interest at the imputed rate of approximately 36% per annum. The unpaid balance of ~~principle~~principal and interest at December 31, 2019 was $65,664. On February 18, 2020 ABCO defaulted on this loan due to the reduction in business from ~~Covid-19. As~~Covid-19 when the balance of the ~~date~~note was $51,750. On March 29, 2021, the Company made a final negotiated settlement payment in the amount of ~~filing this report, no arrangements~~$36,998 and recorded gain on extinguishment of debt for ~~resuming payments had been accomplished but~~approximately $15,000 during the six months ended June 30, 2021. Outstanding principal balance ~~had been reduced to~~as of June 30, 2021 and December 31, 2020 on the note was $-0- and $51,750, ~~through payments to the date of default~~respectively.

On December 31, 2019 ABCO borrowed $25,000 from Green Capital Funding, LLC. The proceeds from this loan were used to acquire the real estate purchased on the date of the loan. This unsecured loan bears interest at approximately 36% and has a repayment obligation in the amount of $35,250 in 76 payments. The unpaid balance of ~~principle~~principal and interest at December 31, ~~2019~~2020 was ~~$35,250. On~~$11,748 after several months of daily payment and a default on February 18, 2020 ~~ABCO defaulted on this loan~~ due to the reduction in business from Covid-19. As of the date of filing this report, no arrangements for resuming payments had been ~~accomplished~~accomplished; however, the Company has been paying $1,000 ~~for~~ per month for ~~the three months ended September 30, 2020 and has reduced the~~several months. Outstanding principal balance ~~to $14,748~~ as of June 30, 2021 and December 31, 2020 on the ~~date of this report.~~note was $7,747 and $11,748, respectively.

On January 22, 2018, the Company borrowed $60,000 from Perfectly Green Corporation, a Texas corporation. The Company ~~repaid~~has paid $26,246 leaving a balance of $33,754 at September 30, 2020 and December 31, 2019. The note bears interest at 3% per annum and is payable upon demand after 60 days’ notice which can be requested at any time after May 31, 2018. Outstanding principal balance as of June 30, 2021 was $-0- and December 31, 2020 was $33,754. During the six months ended June 30, 2021, the Company wrote off the balance on this loan because they have been unable to reach the lender for over two years. It appears they are out of business.

Mr. Charles O’Dowd, former President and Director of ABCO Energy resigned from all positions with the Company on October 7, 2019. Prior to his resignation, Mr. O’Dowd had loaned the Company funds in the principal amount of $61,052 which is represented by a Promissory Note that is unsecured that also has unpaid interest accrued at December 31, 2020 of $34,694 leaving a total balance due of $95,746 at June 30, 2021. The note bears interest at the rate of 12% per annum. Mr. O’Dowd has filed legal action against the Company for collection of the amounts due under the Note. He received a default judgment and is attempting to execute on the judgment. Outstanding principal balance as of June 30, 2021 and December 31, 2020 on the note was $70,500 and $61,052, respectively. During the period ended June 30, 2021 the Company negotiated a settlement with Mr. O’Dowd for a payment of $5,000 in cash and 48 monthly payments of $1,500 totaling $72,000. As of June 30, 2021 the balance on this debt was 70,500 including interest, and the Company recorded a gain on the changes to this note in the amount of $18,746.
On February 24, 2021, the Company executed a promissory note evidencing an unsecured loan (“Loan”) for $128,232 under the Paycheck Protection Plan (“PPP”). The terms of the Loan require 1.00% interest. This loan contains the same clauses as the previous EDIL loan described in the following paragraph. The Loan is forgivable, but no assurance can be given that the Company will receive forgiveness of this Loan. Outstanding principal balance as of June 30, 2021 and December 31, 2020 on the note was $128,232 and $-0-, respectively.
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ABCO ENERGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND
THE YEAR ENDED DECEMBER 31, 2020
On May 3, 2020, Company entered into a promissory note evidencing an unsecured loan in the amount of $123,999.00 made to the Company under the Paycheck Protection Program (the “Loan”). The Paycheck Protection Program (or “PPP”) was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), and is administered by the U.S. Small Business Administration. The Loan to the Company is being made through Bank of America, N.A., a national banking association (the “Lender”). The interest rate on the Loan will not exceed 1.00%. The promissory note evidencing the Loan contains customary events of default relating to, among other things, payment defaults, making materially false and misleading representations to the SBA or Lender, or breaching the terms of the Loan documents. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, or filing suit and obtaining judgment against the Company. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. No assurance is provided that the Company will obtain forgiveness of the Loan in whole or in part. If the SBA does not confirm forgiveness of the Loan or only partly confirms forgiveness of the Loan, including principal and interest (“Loan Balance”); then, in either such case, the Lender will establish the terms of repayment of the Loan Balance via a separate letter to the Company, containing the amount of each monthly payment, the interest rate, etc. On March 9, 2021, the SBA and Bank of America notified the Company that the entire balance of this note has been forgiven by the Government. The Company recorded a gain on extinguishment of debt during the six months ended June 30, 2021 for $124,099 ($123,999 plus costs). Outstanding principal balance as of June 30, 2021 and December 31, 2020 on the note was $-0- and $123,999, respectively.
Note 11 – Convertible debentures ~~-net~~- net of discounts and fees.

~~During the year ended December 31, 2019, the Company funded operations with borrowing on new convertible promissory notes.~~ This table presents the positions on the outstanding notes ~~as of September~~at June 30, ~~2020.~~2021 and December 31, 2020, respectively.

Holder

Date
  of Loan

Loan
amount

OID and
discounts
  and fees

Interest
rate

Balance
December 31, 2019

Balance
September 30, 2020

Power Up Lending Group Ltd
5-13-19 $ 96,300 $ 13,300 8
%
$ 4,300 $ 0
Power Up Lending Group Ltd
8-14-19 68,000 13,000 8
%
68,000 0
Power Up Lending Group Ltd
9-11-19 76,000 13,000 8
%
76,000 57,450
Crown Bridge Tranche 1
8-8-19 50,000 5,000 8
%
50,000 23,540
Oasis Capital
9-1-18 150,000 124,671 274,671 243,509
Totals and balances for 6-30-2020
$ 442,300 $ 164,471 $ 472,971 $ 324,499
Holder

Date
of Loan

Loan
amount

OID and
discounts
and fees

Interest
rate

Balance
June 30, 2021

Balance
December 31, 2020

Power Up Lending Group Ltd
3-29-21 80,000 20,600 12
%
89,600 0
Power Up Lending Group Ltd
5-25-21 48,750 13,987 12
%
53,625 0
Oasis Capital
1-22-20 189,000 17,758 8
%
30,458 150,553
Oasis Capital
9-1-18 150,000 0 8
%
3,264 3,264
Totals and balances
$ 442,300 $ 71,658 $ 176,947 $ 153,817

The Financial Accounting Standard ASC 815 Accounting for Derivative Instruments and Hedging Activities require that instruments with embedded derivative features be valued at their market values. The Black Scholes model was used to value the derivative liability for the six months ended June 30, 2021 and the fiscal year ending December 31, ~~2019 and December 31, 2018. The initial valuation of the derivative liability on the non-converted common shares totaled $207,081 at December 31, 2019.~~2020. This value includes the fair value of the shares that may be issued according to the contracts of the holders and valued according to our common share price at the time of acquisition.

The Company issued to Power Up Lending Group, Inc. a $96,300 Convertible Promissory Note dated May 13, 2019 which contains an original issue discount of $10,000 (OID) and expenses of $3,300 [“Note”]. The Note is convertible into Company common stock beginning six months after the date of the Note with a stated discount rate of 19% as set forth in the Note. There is no trigger of derivative liability from conversion features until six months after initial borrowing date. Without the OID, the effective discount would have been 35%. The net proceeds from this Note were used for working capital. $92,000 of this note was converted in 2019 and 2020. The balance of $4,300 was converted during the nine months ended September 30, 2020.
The Company issued to Power Up Lending Group, Inc. [“Power Up”], a $68,000 Convertible Promissory Note dated August 14, 2019 [“Note”] which contains an original issue discount of $10,000.00 (OID) and expenses of $3,000.00 [“Note”]. The Note is convertible into Company common stock beginning six months after the date of the Note with an effective discount rate of approximately 19% upon conversion. There is no trigger of derivative liability from conversion features until six months after initial borrowing date. Without the OID, the effective discount rate would be 35% as set forth in the Note. The net proceeds from the Note, was used for working capital. $68,000 of this note was converted during the six months ended September 30, 2020.
The Company issued to Power Up Lending Group, Inc. [“Power Up”], a $76,000 Convertible Promissory Note dated September 11, 2019 [“Note”] which contains an original issue discount of $10,000.00 (OID) and expenses of $3,000.00 [“Note”]. The Note is convertible into Company common stock beginning six months after the date of the Note with an effective discount rate of approximately 19 % upon conversion. There is no trigger of derivative liability from conversion features until six months after initial borrowing date. Without the OID, the effective discount rate would be 35% as set forth in the Note. The net proceeds from the Note, was used for working capital. $18,550 of this note was converted during the nine months ended September 30, 2020.
On August 8, 2019 the Company issued to Crown Bridge Partners, LLC a Convertible Promissory Note which contains an original issue discount of $15,000 and expenses of $6,000 [“Note”]. ABCO has borrowed the first tranche of $50,000 and paid the expenses of $5,000 of this agreement. The note is divided into 3 tranches with the 1st being executed on August 8, 2019 and the remaining 2 tranches to be issued at Company’s discretion. The note is convertible into Company common stock beginning six months after the date of the effective date of each tranche with a stated discount rate of 36%. There is no trigger of derivative liability from conversion features until six months after initial borrowing date. At the time of the Buyer’s funding of each tranche under the Note, the Company shall issue to Buyer as a commitment fee, a common stock purchase warrant to purchase an amount of shares of its common stock equal to 150% of the face value of each respective tranche divided by $0.05 (for illustrative purposes, the First Tranche face value is equal to $50,000, which resulted in the issuance of a warrant to purchase 1,500,000 shares of the Company’s common stock) pursuant to the terms provided therein (all warrants issuable hereunder, including now and in the future, shall be referred to, in the aggregate, as the “Warrant”) (all warrants issuable hereunder shall be in the same form as the Warrant issued in connection with the First Tranche). The net proceeds from this Note were used for working capital. A conversion feature is associated with this note and prorated from August 8, 2019 to September 30, 2019 in the amount of $4,314. The derivative liability calculation on this note due to its immediate convertibility resulted in a charge to income of $57,075 and a liability in the amount of $71,764. Management does not intend to exercise the last two options to borrow on this note. $26,460 of this note was converted during the three months ended September 30, 2020.
15
~~Table of Contents~~
~~ABCO ENERGY, INC.~~
~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019~~
~~AND THE YEAR ENDED DECEMBER 31, 2019~~
As of February 16, 2019, the Company issued to Power Up, a $55,000.00 of shares of the Series C Preferred Stock agreement (Note) net of an original issue discount of $10,000.00 (OID) and expenses of $3,000.00 [“Note”]. The Note was convertible into Company common stock beginning six months after the Effective Date with an effective discount rate of approximately 20%. The OID on this issue that is paid out of proceeds allows a lower purchase price if the Company purchases this liability. The Company redeemed this note for $106,145 before Power up converted it to common stock, so no dilution took place.
As of March 19, 2019, the Company issued to Power Up, a $55,000.00 of shares of the Series C Preferred Stock agreement net of an original issue discount of $10,000.00 (OID) and expenses of $3,000.00 [“Note”]. The Note is convertible into Company common stock beginning six months after the Effective Date with an effective discount rate of approximately 20%. The OID on this issue that is paid out of proceeds allows a lower purchase price if the Company purchases this liability.
As of September 1, 2018, the Company entered into an Equity Purchase Agreement with Oasis Capital, LLC, a Puerto Rico limited liability company (“Investor”) pursuant to which Investor agreed to purchase up to $5,000,000 of the Company’s common stock at a price equal to 85% of the market price at the time of purchase (“Put Shares”). The Company agreed to file a new registration statement to register for resale the Put Shares. The Registration Statement must be effective with the SEC before Investor is obligated to purchase any Put Shares. In addition, the Company [i] issued to Investor a one year $150,000 note which is convertible at a fixed price of $.01 per share as a commitment fee for its purchase of Put Shares and [ii] delivered to Investor a Registration Rights Agreement pursuant to which the Company agreed to register all Put Shares acquired under the Equity Purchase Agreement. During ~~2019,~~2020, Investor converted ~~$19,405~~$59,692 of principal of the Note and received ~~22,392,161~~930,165,889 (post reverse 5,471,564) shares of common stock. AtDuring the twelve months ended December 31, ~~2019,~~2020, the ~~Note~~negotiated note balance was ~~$130,595. Due to change in accounting treatment this note was booked as a prepaid expense with add-on penalties for a total of $144,076 and a liability of $274,671.~~$3,264. The difference is charged to expenses for penalties, derivatives and derivative interest in the amount of $144,076. The entire balance of the prepaid amount has been expensed in the amount of $274,671 in 2019. The liability for this note was not recorded in 2018 because the note had not yet matured. During the nine months ended June 30, 2020 Oasis converted $31,162 into shares. Theunpaid principal balance on the ~~original note including interest~~Note was $3,264 and ~~penalties was $62,956~~$3,264 at ~~September~~June 30, ~~2020.~~2021 and December 31, 2020, respectively.

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Table of Contents
ABCO ENERGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND
THE YEAR ENDED DECEMBER 31, 2020
As of January 21, 2020 (“Effective Date”), the Company issued to Oasis a $208,000 Promissory Note, net of a prorated original issue discount of $16,000 (“1/21/20 Note”). The Company received $34,000 (“First Tranche”) ~~and~~with four additional Tranches through December 31, 2020 totaling $85,000. There were three Tranches for the ~~Second in the amount~~period of ~~$25,000 was received in the 1st quarter. The Third Tranches under this Note were due in~~January 1, 2021 to February ~~and March 2020, respectively. In addition, the note caries an $8,000 credit for Oasis transactional expenses. There have been no additional loans from the transaction since tranche one and two~~19, 2021, totaling ~~$59,000.~~$70,000. Each Tranche matures nine months from the effective date of each such payment. The Company issued Warrants with each Tranche totaling [2,100,000] shares. Each Warrant expires five years from the date of issuance and is exercisable at a conversion price of 120% of the closing price on the trading day prior to the funding date of the respective Tranche. The Company also agreed to issue to Oasis 5,000,000 shares of common stock as an incentive/commitment fee in connection with the transactions. The Company valued these shares at $14,500 and ~~they are listed on the balance sheet under the cation Common Shares to be issued.~~issued these shares in 2020. The ~~Company was required to use the proceeds received from the~~1/21/20 Note ~~to retire currently outstanding convertible debt from two lenders which have not yet matured for conversion. The Note becomes~~is convertible into common stock ~~six months after the Effective Date~~ at a 35% discount to market. The ~~cash value~~balance of the Note at June 30, 2021 was $30,458, including all penalties and interest and payments through conversions for $76,224. Outstanding principal balance as of June 30, 2021 and December 31, 2020 on the note was $30,458 and $150,553, respectively. During the six months ended June 30, 2021 Oasis converted 10,012,508 shares to pay off $120,095 in principle on this note.
On March 29, 2021, the Board of Directors of the Corporation deem it in the best interests of the Corporation to enter into the Securities Purchase Agreement dated March 29, 2021 (the “Agreement”) with Power Up Lending Group Ltd. (“PowerUp”), in connection with the issuance of: (i) a promissory note of the Corporation, in the form attached hereto as Exhibit A, in the aggregate principal amount of $80,000 (including $7,500of Original Issue Discount) (the “Note”), (ii) Three Hundred Seventy Three Thousand Three Hundred Thirty Three (373,333) restricted common shares of the Corporation (“Commitment Shares”) to be delivered to PowerUp in book entry with the Corporation’s transfer agent prior to the Closing Date, (iii) Seventy Hundred Forty Six Thousand Six Hundred Sixty Seven (746,667) restricted common shares of the Corporation (“Security Shares” and together with the Note and the Commitment Shares, collectively, the “Securities”) to be delivered to PowerUp in book entry with the Corporation’s transfer agent prior to the Closing Date; and in connection therewith to enter into an irrevocable letter agreement with Vstock Transfer LLC, the Corporation’s transfer agent, with respect to the reserve of shares of common stock of the Corporation to be issued upon any conversion of the Note (only upon default); the issuance of such shares of common stock in connection with a conversion of the Note (the “Letter Agreement”). The proceeds of this note ~~at September~~were specifically slated for payment of the settlement of the Knight Capital Merchant Loan for $22,000 and the final payment of the Pearl Capital merchant note for $36,998. These discounted payoffs of these notes saved the company $26,446 plus future interest. Outstanding principal balance as of June 30, 2021 and December 31, 2020 on the note was ~~recorded at $180,553 including principal, fees~~$89,600 and ~~interest.~~$-0-, respectively.

~~The combination~~On May 25, 2021, the Board of Directors of the ~~two notes at September 30 2020 have~~Corporation deem it in the best interests of the Corporation to enter into the Securities Purchase Agreement (the “Agreement”) with Power Up Lending Group Ltd. (“PowerUp”), in connection with the issuance of: (i) a ~~recorded balance~~promissory note of ~~$243,509. Oasis and~~the Corporation, in the form attached hereto as Exhibit A, in the aggregate principal amount of $53,625 (including $4,875 of Original Issue Discount) (the “Note”), (ii) the rights to acquire 1,340,625 warrants for common shares of the Corporation to be delivered to PowerUp upon submission to the Company ~~have agreed to negotiate this commitment~~of the exercise price of $.03 per share. These warrants are exercisable for a period of three years after ~~the Company is current on its filings. Subsequent to~~ the date of ~~this statement, Oasis converted~~ the ~~entire remaining balance of $62,956 into shares of stock.~~loan.
Note 12 – Fair Value Measurements

The Company complies with the provisions of FASB ASC No. 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value and in disclosing fair value measurements at the measurement date. ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements required under other accounting pronouncements. FASB ASC No. 820-10-35, Fair Value Measurements and Disclosures- Subsequent Measurement (“ASC 820-10-35”), clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10-35-3 also requires that a fair value measurement reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and/or the risks inherent in the inputs to the model.

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Table of Contents

ABCO ENERGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE ~~THREE AND NINE~~SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2020~~2021 AND ~~2019~~
~~AND~~ THE YEAR ENDED DECEMBER 31, ~~2019~~2020

The following table shows the change in the fair value of the derivative liabilities on all outstanding convertible debt at ~~September 30,2020~~June 30, 2021 and ~~at December 30,2019:~~2020:

Description

September 30,
2020

December 31,
2019

Purchase price of the convertible debenture - net of discount
$ 442,300 $ 442,300
Valuation reduction during the period
(298,354
)
(344,326
)
Balance of derivative liability net of discount on the notes (See Consolidated Balance sheet liabilities)
$ 143,946 $ 97,974

Derivative calculations and presentations on the Statement of Operations

Loss on note issuance
$ -
Change in Derivative (Gain) Loss
(157,575
)
(48,453
)
Derivative Finance fees
(1,055
)
(318,972
)
Gain (loss) on extinguishment of debt
(244,712
)
Derivative expense charged to operations in 2020 and 2019 (See Consolidated Statement of Operations)
$ (158,630
)
$ ( 612,137
)
Description

June 30, 2021

June 30, 2020

Purchase price of the convertible debenture - net of discount
$ - $ 442,300
Valuation reduction during the period
- (53,119
)
Balance of derivative liability net of discount on the notes (See Consolidated Balance sheet liabilities)
$ - $ 389,181

Derivative calculations and presentations on the Statement of Operations

Loss on note issuance
$ 0 $ 0
Change in Derivative (Gain) Loss
0 (290,137
)
Derivative Finance fees
(49,623
)
-
Gain (loss) on extinguishment of debt
0 0
Derivative expense charged to operations in 2021 and 2020 (See Consolidated Statement of Operations)
$ (49,623
)
$ (290,137
)

Note 13 – Long term debt

Holder

Date issued

Interest rate

Amount due
September 30,
2020

Amount due
December 31,
2019

Real Estate Note Allen-Neisen Family trust – Et. Al.
12-31-19 5
%
$ 291,914 $ 300,000
US Treasury EIDL payroll loan (Forgivable
5-04-20 1
%
124,099 -
US Treasury SBA guaranteed loan
7-21-20 3.75
%
149,900 -
Ascentium Capital
10-1-18 13
%
7,024 11,192
Fredrick Donze
9-2-18 6
%
3,733 4,043
Charles O’Dowd (officer)
8-9-18 6
%
1,946 3,625
Total long term debt
578,616 318,860
Less Current portion
16,717 18,860
Total long-term debt
$ 561,899 $ 300,000
Holder

Date issued

Interest rate

Amount due
June 30,
2021

Amount due
December 31,
2020

Real Estate Note Allen-Neisen Family trust – Et. Al.
12-31-19 5.00
%
$ 285,600 $ 290,271
US Treasury SBA guaranteed loan
7-21-20 3.75
%
150,000 150,000
Ascentium Capital
10-1-18 13.00
%
5,580 6,998
Fredrick Donze
9-2-18 6.00
%
327 2,274
Charles O’Dowd promissory note
6-15-21 5.00
%
70,500 0
Charles O’Dowd – former officer truck loan
8-9-18 6.00
%
0 2,560
GMAC Chev truck
10-20-20 5.99
%
22,127 23,574
Mechanics Bank – Chev Truck
12-12-20 8.99
%
22,276 24,318
Total long-term debt
556,410 499,995
Less Current portion
44,022 27,702
Total long-term debt
$ 512,388 $ 472,293

On December 31, 2019 ABCO completed negotiations, financial arrangements and closed on the purchase of a 4,800 square foot office and warehouse building located on one/half acre of paved land on one of Tucson’s busiest streets. This property will be more than adequate to house both the Solar business ~~(Now 3600 SF~~ and ~~the~~our HVAC ~~business (now 2000 SF) including our previously announced acquisition of a Tucson HVAC service and equipment supplier.~~expansion. The land and outbuildings will accommodate all of our equipment. The property acquisition was priced at $325,000 the company paid $25,000 down payment and the seller financed $300,000 ~~over a twenty-year~~ mortgage based on a ~~twenty year~~twenty-year amortization and a 5% interest rate with a balloon payment at the end of five (5) years. The monthly payment is $1,980. Outstanding principal balance as of June 30, 2021 and December 31, 2020 on the note was $285,600 and $290,271, respectively.

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Table of Contents

ABCO ENERGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE ~~THREE AND NINE~~SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2020~~2021 AND ~~2019~~
~~AND~~ THE YEAR ENDED DECEMBER 31, ~~2019~~2020

On May 3, 2020, Company entered into a promissory note evidencing an unsecured loan in the amount of $124,099.00 made to the Company under the Paycheck Protection Program (the “Loan”). The Paycheck Protection Program (or “PPP”) was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), and is administered by the U.S. Small Business Administration. The Loan to the Company is being made through Bank of America, N.A., a national banking association (the “Lender”). The interest rate on the Loan will not exceed 1.00%. The promissory note evidencing the Loan contains customary events of default relating to, among other things, payment defaults, making materially false and misleading representations to the SBA or Lender, or breaching the terms of the Loan documents. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, or filing suit and obtaining judgment against the Company. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. No assurance is provided that the Company will obtain forgiveness of the Loan in whole or in part. If the SBA does not confirm forgiveness of the Loan or only partly confirms forgiveness of the Loan, including principal and interest (“Loan Balance”); then, in either such case, the Lender will establish the terms of repayment of the Loan Balance via a separate letter to the Company, containing the amount of each monthly payment, the interest rate, etc.
On July 21, 2020, the Company received an SBA loan from Bank of America in the amount of $150,000 that is guaranteed by the US Treasury Department. Installment payments, including principal and interest, of $731.00 ~~Monthly,~~monthly, will begin Twelve (12) months from the date of the promissory Note. The balance of principal and interest will be payable Thirty (30) years from the date of the promissory Note. Interest will accrue at the rate of 3.75% per annum and will accrue only on funds actually advanced from the date(s) of each advance. Each payment will be applied first to interest accrued to the date of receipt of each payment, and the balance, if any, will be applied to principal. For loan amounts of greater than $25,000, Borrower hereby grants to SBA, the secured party hereunder, a continuing security interest in and to any and all “Collateral” as described herein to secure payment and performance of all debts, liabilities and obligations of Borrower to SBA hereunder without limitation, including but not limited to all interest, other fees and expenses (all hereinafter called “Obligations”). The Collateral includes the following property that Borrower now owns or shall acquire or create immediately upon the acquisition or creation thereof: all tangible and intangible personal property, including, but not limited to: (a) inventory, (b) equipment, (c) instruments, including promissory notes (d) chattel paper, including tangible chattel paper and electronic chattel paper, (e) documents, (f) letter of credit rights, (g) accounts, including health-care insurance receivables and credit card receivables, (h) deposit accounts, (i) commercial tort claims, (j) general intangibles, including payment intangibles and software and (k) as-extracted collateral as such terms may from time to time be defined in the Uniform Commercial Code. The security interest Borrower grants includes all accessions, attachments, accessories, parts, supplies and replacements for the Collateral, all products, proceeds and collections thereof and all records and data relating thereto. During the six months ended June 30, 2021 and the year ended December 31, 2020, the Company recorded $2792 and $2,812 in interest expense on this loan, respectively.   Unpaid principal balance of the SBA loan at June 30, 2021 and December 31, 2020 was $150,000 and $150,000, respectively.

The Company recorded a gain on extinguishment of debt during the six months ended June 30, 2021 of $206,047.
ABCO acquired the assets of Dr. Fred Air Conditioning services on September 2, 2018 for the total price of $22,000. The allocation of the purchase price was to truck and equipment at $15,000 and the balance was allocated to inventory and the license for period of five or more years. The truck and equipment were financed by Ascentium Capital. The payments on the Ascentium capital note are $435 and the payments on the Donze note are $212 each per ~~month~~month.

The Company purchased an automobile from its then President, Charles O’Dowd, with a promissory note in the amount of $6,575 dated August 9, 2018 and the note bears interest at 6% per annum for the three-year payment plan. Mr. O’Dowd is no longer an officer or employee of the Company. The ~~principle payments during 2019 totaled $2,107. The~~ balance at ~~September~~June 30, 2021 and December 31, 2020 was ~~$1,946.~~$ 0 and $2,560, respectively.

Note 14 – ~~Stockholder’s~~Stockholder’s Deficit
~~Common Stock~~
During the year ended December 31, 2019 the Company sold 4,740,000 shares of restricted common shares in Regulation S offerings to non-US investors. The total proceeds from the offering was $160,305. Commission and expense reimbursements totaled $80,049. The Company recorded net proceeds totaling $80,256.
~~In addition, debenture holders converted debt into 1,365,518,410 shares which were issued upon conversion of $275,237 of the notes referred to in Note 10 above.~~

18
~~Table of Contents~~
~~ABCO ENERGY, INC.~~
~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019~~
~~AND THE YEAR ENDED DECEMBER 31, 2019~~
During 2018 the Company issued 1,350,000 restricted common shares to management for services with a fair market value of $27,000. Of these awards, Charles O’Dowd received 450,000 shares and Wayne Marx received 50,000 shares. The balance of 850,000 shares was awarded to consultants to the Company. In October 2019, 1,000,000 shares each were issued to Mikael Mildebrandt and Adrian Balinski in connection with their becoming officers and directors of the Company.
~~During the three months ended September 30, 2020 the following shares were converted from debt.~~
Capital Company

Shares converted

Dollars converted

Crown Bridge Partners
99,000,000 $ 8,880
Power Up
170,000,000 40,800
Oasis Capital
1,097,220,189 24,884
Total
1,366,220,189 $ 74,564
Preferred Stock

On September 15, 2017 and on September 15, 2018, the Board of Directors authorized on each such date the issuance of 15,000,000 preferred shares for an aggregate of 30,000,000 shares of Class B Convertible Preferred Stock [“Series B”] to both Directors of the Company and to two ~~unaffiliated~~ Consultants, orof which, David Shorey, President of the Company, is the beneficial owner thereof, a total of 30,000,000 shares of Series B. The Company assigned a value of $15,000 for the shares for 2017 and 2018. Of the Series B, 12,000,000 shares were issued to Charles O’Dowd and 2,000,000 to Wayne Marx, the Directors. Each Consultant received 8,000,000 shares. See the Company’s Schedule 14C filed with the Commission on September 28, 2018. Upon his resignation, Mr. O’ Dowd’s shares were cancelled and reissued to two Consultants. These shares have no market pricing and management assigned an aggregate value of $30,000 to the stock issued based on the par value of $0.001. The 30,000,000 shares of ~~preferred~~Preferred Stock, each ~~with~~ has 200 votes for each Preferred share held by ~~them~~ of record. The holders of the Preferred are also entitled to an additional ~~300,000,000~~8,823,930 common shares upon conversion of the Preferred Stock. As a result of owning of these shares of Common and Preferred Stock, the Control Shareholders will have voting control of the Company.

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ABCO ENERGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND
THE YEAR ENDED DECEMBER 31, 2020
Common Stock
During the three months ended June 30, 2021 and the year ended December 31, 2020 the following shares were issued for debt conversions:

Three Months Ended
June 30, 2021

During the Year Ended
December 31, 2020

Capital Company

Shares converted

Dollars converted

Shares converted

Dollars converted

Crown Bridge Partners
0 $ 0 2,300,000 $ 46,540
Power Up
0 0 1,633,968 57,450
Oasis Capital
18,973,258 147,423 5,173,328 125,775
Total
18,973,258 $ 147,423 9,107,296 $ 229,765
After the reverse of shares effective January 4, 2021 the authorized shares were reduced to 29,411,765. Our board of directors believes that it is desirable to have additional authorized shares of common stock available for possible future financings, acquisition transactions, joint ventures and other general corporate purposes. Our board of directors believes that having such additional authorized shares of common stock available for issuance in the future will give us greater flexibility and may allow such shares to be issued without the expense and delay of a special shareholders’ meeting unless such approval is expressly required by applicable law. Although such issuance of additional shares with respect to future financings and acquisitions would dilute existing shareholders, management believes that such transactions would increase the overall value of the Company to its shareholders. Therefore, on January 11, 2021, the shareholders voted to authorize an increase in the Authorized Common Shares to 2,000,000,000 shares.
Earnings (loss) per share calculation

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period

The computation of basic and diluted loss per share at June 30,2021 and December 31, ~~2019~~2020 excludes the common stock equivalents from convertible debt of the following potentially dilutive securities because their inclusion would be anti-dilutive, and the share issue number is not calculable until conversion takes place.

Stock subscriptions executed under an earlier offering included a provision whereby ABCO agrees to pay a dividend (defined as interest) of from 6% to 12% of the total amount invested for a period of one year from receipt of the invested funds. This dividend (defined as interest) is allocated between the broker and the investor with amounts paid to the broker treated as a cost of the offering and netted against additional paid in capital and amounts paid to the investor treated as interest expense. Total amounts paid or accrued under this agreement and charged to additional paid-in capital for the ~~years~~six months ended June 30, 2021 and the year ended December 31, ~~2019 and 2018, amounted to $0 and $0, respectively. Total amounts paid under this agreement and charged to interest expense for the years ended December 31, 2019 and 2018,~~2020, amounted to $0 and $0, respectively. The accrued balance due on this obligation to shareholders totals $49,290 at June 30, 2021 and $49,290 at December 31, ~~2019 and 2018.~~2020.

ABCO has evaluated these agreements under ASC 480-10: Certain Financial Instruments with Characteristics of ~~Both~~both Liabilities and Equity and determined that the capital contributions made under these subscription agreement more closely resemble equity than liabilities as they can only be settled through the issuance of shares and although they have a stated cost associated with them which accrues in the same manner as interest, the cost is only incurred in the first twelve months after placement as is more closely associated with a cost of raising funds than interest expense.

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ABCO ENERGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE ~~THREE AND NINE~~SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2020~~2021 AND ~~2019~~
~~AND~~ THE YEAR ENDED DECEMBER 31, ~~2019~~2020
Note 15 – Equity Awards

~~Note 15 – Equity Awards~~
The following table sets forth information on outstanding option and stock awards held by the named executive officers of the Company at ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, including the number of shares underlying both exercisable and un-exercisable portions of each stock option as well as the exercise price and the expiration date of each outstanding option. See Note to Notes to Consolidated Financial Statements.

Outstanding Equity Awards After Fiscal Year-End (1)

Name

Number of securities underlying unexercised
options exercisable (1)

Number of securities underlying unexercised
options un-exercisable (2)

Option Exercise Price ($)

Option Grant Date

Option Expiration Date
Charles O’Dowd

500,000

(3)

0

$
.001

01/01/2017

01/01/2021
Wayne Marx

500,000

0

$
.001

01/01/2017

01/01/2021
Mikael Mildebrandt

1,000,000

(4)

8

$
.001

11/01/2019

11/01/2013
Adrian Balinski

1,000,000

(4)

8

$
.001

11/01/2019

11/01/2023
Outstanding Equity Awards After Fiscal Year-End (1)
Name

Number of securities underlying unexercised
options exercisable (1)(5)

Number of securities underlying unexercised
options un-exercisable (2)

Option Exercise Price ($)

Option Grant Date

Option Expiration Date
Michael Mildebrandt
3,704 (3)(4) 8 $ .001
11/01/2019

11/01/2023
Adrian Balinski
3,704 (3)(4) 8 $ .001
11/01/2019

11/01/2023

(1)
No7,408 shares were issued for Equity Awards ~~were issued~~ during the year ended December 31, ~~2019 or during the six months ended September 30, 2020.~~2019.
(2)
All options vest 20% per year beginning on the first anniversary of their grant date.
(3)
~~This option was terminated when Mr. O’Dowd resigned from the Company in October 2019.~~
~~(4)~~
Messrs. Mildebrandt and Balinski were each awarded ~~1,000,000~~3,704 shares of restricted common stock as of October 31, ~~2019,~~2020, for being officers and directors of the Company.
(4)
~~(5)~~
~~Messers.~~Mr. Mildebrandt and Mr. Balinski have resigned as officers and directors.
(5)
Mr. Charles O’Dowd, former president of ABCO, resigned on October 7, 2019. All options previously issued to Mr. O’Dowd expired on January 1, 2021 and none were exercised at any time.

An aggregate of ~~2,120,000~~7,408 stock awards are outstanding under the Equity Incentive Plan as(“EIP”) at June 30, 2021.
Effective January 9, 2021, the Company issued an aggregate of ~~December 31, 2019. The 620,000~~5,000,000 restricted common shares for services rendered, of ~~the options are issued~~which 500,000 were awarded to ~~a consultant of the Company.~~Wayne Marx, an officer and Director, 3,500,000 shares to an LLC controlled by David Shorey, President, CEO and CFO, and 1,000,000 shares to an outside consultant.
Note 16 – Subsequent Events

On ~~September 21, 2020,~~July 7,2021, Absaroka Communications Corp (“ACC”) , a consultant to the Company and an affiliate of the President of the Company, converted 1,000,000 shares of Series B Convertible Rreferred Shares (“Series B Preferred”) into 10,000,000 shares of free-trading common shares. The Series B Preferred is by its terms convertible at the rate of one share of Series B Preferred for 10 shares of common stock.The conversion right was granted for services rendered.
On July 19, 2021, the Company entered into an Equity Purchase Agreement with Oasis Capital, LLC, ~~converted $15,493.25 of principal~~a Puerto Rico limited liability company (“Investor”) pursuant to which Investor agreed to purchase up to $2,500,000 of the ~~August 6, 2018 convertible note [“Note”] and received 109,724,630 shares. The remaining Note balance was $62,956.44 after this conversion.~~Company’s common stock at a price equal to 80% of the lowest traded price of the common stock during the five trading days immediately preceding the applicable purchase (“Put Shares”). In addition, the Company entered into a Registration Rights Agreement with Investor pursuant to which the Company agreed to register all Put Shares acquired under the Equity Purchase Agreement. The Company ~~did not receive any proceeds from this conversion. Prior to filing this report, Oasis converted the balance of the note to shares.~~
~~On May 29, 2020, Power Up notified the Company that it was in default under the terms of its Convertible Promissory Note dated September 11, 2019 for failure~~agreed to file ~~this Form 10K~~a new registration statement on ~~a timely basis and thereby becoming a non-reporting company under~~or before August 18, 2021 to register for resale the ~~1934 Exchange Act. Demand for immediate payment of $98,250 plus accrued interest and accrued default interest was also made.~~Put Shares. The ~~Company is currently considering its options as to how to respond/proceed with respect thereto.In September 2020, Power Up withdrew its default notice after the Company became current in its filings under the 1934 Exchange Act~~Registration Statement must be effective with the ~~SEC.~~SEC before Investor is obligated to purchase any Put Shares.

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Item2.     ~~MANAGEMENT’S~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS – OVERVIEW
FOR THE THREE MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2020~~ ~~COMPARED TO THREE~~ ~~MONTHS ENDED SEPTEMBER~~2021
AND JUNE 30, ~~2019~~.2020

Our discussion of operating results for the three months ended ~~September~~June 30, ~~2020~~2021 and ~~September 30, 2019~~2020 are presented below with major category details of ~~revenue~~revenues and ~~expense~~expenses including the components of operating expenses.
Sales consist of photovoltaic products, electrical services and LED lighting products and installation during both ~~periods for the three months ended September 30, 2020 and for the three months ended September 30, 2019.~~periods.

Sales for the three months ended ~~September~~June 30, 2021 and 2020 were ~~$246,102 as compared to $512,988 for the same three months in 2019.~~$432,673 and $207,239, respectively.  This is ~~a decrease~~an increase of ~~$266886~~$225,434 or ~~52%~~109% of the ~~2019~~2020 sales. The Solar sales revenue in ~~2020~~2021 and ~~2019~~2020 reflected seasonal and changing market conditions in the financing of solar ~~installations.~~installations in the Arizona markets and the effects of the COVID-19 Pandemic.  ABCO has ~~increased their efforts to sell into the commercial markets and increased~~begun its focus on commercial sales in 2017 and has been able to grow every period since that decision. ABCO has worked diligently to overcome the ~~financial requirements~~utility changes by focusing on commercial applications and the increased interest of ~~nonprofit organization’s financing requirements during the 2020 period. The results of these changes~~business and ~~efforts have begun to materialize and are shown~~government in the ~~results of operations.~~LED lighting contracts.

Cost of sales for the three months ended June 30, 2021 and 2020 was ~~114%~~$159,297 and $220,150, respectively, and 37% and 106% of ~~revenues in 2020 and 63% of revenues in 2019.~~sales for each period then ended. Gross margins were ~~(14) %~~63% of revenue ~~in 2020~~for the first three months ended June 30,2021 and 36 (6)% of revenue for the three months ~~of 2019.~~ended June 30, 2020.  During ~~2020~~2021 and ~~2019~~2020 we have been offering new products and have found our entry market prices for steel parking structures have added gross margins higher than usual because we use outside contractors for the entire projects.  Our gross profit reflects this decision.  We feel that we have made progress in entering the parking shade markets and that our gross margins will stabilize as growth lowers these margins in the future.

Total selling, general and administrative expenses were ~~77%~~$186,296 or 43% of revenues ~~in 2020~~during the three months ended June 30, 2021 and ~~40%~~$305,231 or 147% of revenues for the ~~same period in 2019.~~three months ended June 30, 2020, respectively.  Net ~~loss~~income from operations for the three-month period ended ~~September~~June 30, ~~2020~~2021 was ~~$(427,957)~~$44,518 as compared to ~~the~~a net loss ~~$(116,876)~~of $(18,431) for the same three-month period ended ~~September~~June 30, ~~2019.~~2020, respectively.  Our operating expenses for ~~this~~the three months ending June 30, 2021 period were lower by ~~$16,647 than~~$118,305 over the comparative period in ~~2019.~~2020. The interest expense during the ~~period~~three months ended ~~September~~June 30, ~~2020 were lower~~2021 increased by ~~$84,035 than in~~$4,510 over the period ended ~~September~~June 30, ~~2019~~2020 due mostly to the ~~working capital provision~~lack of ~~merchant~~new convertible loans ~~and convertible debt being borrowed and funds utilized~~during this period where accounting treatment requires the recording of prepaid interest during the first phase of the loan and because ~~no new~~of higher loans ~~were taken out in 2020 that carry upfront fees..~~from related parties. This combination of factors ~~increased the net loss by $(311,081) during~~resulted in a profit for the three months ended ~~September~~June 30, ~~2020~~2021 to $44,518 as compared to a loss of $(18,431) for the three months ended ~~September~~June 30, ~~2019. Since our year to date revenues are lower than the previous year, this resulted~~2020, respectively.
As noted in ~~lower operating expenses as a percentage of total revenue.~~
previously, ABCO could not finish its backlog of work and expand into the markets of LED lights and commercial solar markets without maintaining staff, facilities and sales expenses.  When ~~sales~~ revenues fall, and expenses are not reduced ~~in equal amounts or percentages,~~proportionately, the result is an increase ~~of the percentage of~~in operating expenses proportionate to revenue.  Operating expenses for the two periods increased to accommodate our expansion of sales ~~revenue.~~programs, but not in the same ratio as the increase in sales. ABCO chose to maintain a level of expenses that would not ~~cripple~~significantly impact the Company’s performance in the future.

~~NINE~~RESULTS OF OPERATIONS – OVERVIEW
FOR THE SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, 2021
AND JUNE 30, 2020 ~~COMPARED TO NINE MONTHS ENDED SEPTEMBER 20,~~ ~~2019~~.

Our discussion of operating results for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~September 30, 2019~~2020 are presented below with major category details of ~~revenue~~revenues and ~~expense~~expenses including the components of operating expenses.
Sales consist of photovoltaic products, electrical services and LED lighting products and installation during ~~the nine months ended September 30, 2020 and for the nine months ended September 30, 2019.~~both periods.

Sales for the ~~nine~~six months ended ~~September~~June 30, 2021 and 2020 were ~~$768,133 as compared to $1,626,614 for the same nine months in 2019.~~$768,399 and $522,031, respectively.  This is ~~a decrease~~an increase of ~~$858,481~~$246,368 or ~~53%~~47% of the ~~2019~~2020 sales. The Solar sales revenue in ~~2020~~2021 and ~~2019~~2020 reflected seasonal and changing market conditions in the financing of solar installations ~~and competition from the public utilities~~ in the Arizona ~~markets.~~markets and the effects of the COVID-19 Pandemic.  ABCO ~~began~~has begun its focus on commercial sales in ~~2018~~2017 and has ~~had success in the commercial market.~~been able to grow every period since that decision. ABCO has worked diligently to overcome the utility changes by focusing on commercial applications and the increased interest of business and government in the LED lighting contracts.

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Cost of sales for the six months ended June 30, 2021 and 2020 was ~~$715,739 or 93%~~$453,439 and $434,320, respectively, and 59% and 83% of ~~revenues in 2020 and $1,004,252 or 62% of revenues in 2019.~~sales for each period then ended. Gross margins were ~~7% of revenue in 2020 and 38%~~41% of revenue for the ~~nine~~first six months ended June 30, 2021 and 17% of ~~2019.~~revenue for the six months ended June 30, 2020.  During ~~2020~~2021 and ~~2019~~2020 we have been offering new products and have found our entry market prices for steel parking structures have added gross margins higher than usual because we use outside contractors for the entire projects.  Our gross profit reflects this decision.  We feel that we have made progress in entering the parking shade markets and that our gross margins will stabilize as growth lowers these margins in the future.

Total selling, general and administrative expenses were ~~$655,269~~$353,090 or ~~85%~~46% of revenues ~~in 2020~~during the six months ended June 30, 2021 and ~~$708,372~~$465,410 or ~~44%~~89% of revenues for the ~~same period in 2019.~~six months ended June 30, 2020, respectively.  Net ~~(loss) income~~loss from operations for the ~~nine-month~~six month period ended ~~September~~June 30, ~~2020~~2021 was ~~$(799,162)~~$(49,183) as compared to ~~the~~a net loss of ~~$(712,635)~~$(371,205) for the same ~~nine~~six month period ended ~~September~~June 30, ~~2019.~~2020, respectively.  Our operating expenses for ~~this~~the six months ending June 30, 2021 period were lower by ~~$53,103 than~~$112,320 over the comparative period in ~~2019.~~2020. The interest expense during the ~~period~~three months ended ~~September~~June 30, ~~2020 was lower~~2021 increased by ~~$173,341 than in~~$14,474 over the period ended ~~September~~June 30, ~~2019~~2020 due mostly to the ~~increase in working capital through~~lack of new ~~merchant~~convertible loans ~~and derivatives on convertible debt. Derivative liabilities~~during this period where accounting treatment requires the recording of ~~convertible debentures were $0~~prepaid interest during the ~~current period as compared to~~first phase of the ~~prior year.~~loan and because of higher loans from related parties. This combination of factors ~~increased~~decreased the loss for the ~~period ending September~~six months ended June 30, ~~2020~~2021 to ~~$(799,162)~~$(49,183) as compared to ~~$(712,635)~~$(371,205) for the ~~nine~~six months ended ~~September~~June 30, ~~2019.~~2020, respectively

As noted in ~~previous paragraphs discussing market conditions,~~previously, ABCO could not finish its backlog of work and expand into the markets of LED lights and commercial solar markets without maintaining staff, facilities and sales expenses.  When ~~sales~~ revenues fall, and expenses are not reduced ~~in equal amounts or percentages,~~proportionately, the result is an increase ~~of the percentage of~~in operating expenses proportionate to ~~sales~~ revenue.  Operating expenses for the two periods increased to accommodate our expansion of sales programs, but not in the same ratio as the increase in sales. ABCO chose to maintain a level of expenses that would not ~~cripple~~significantly impact the Company’s performance in the future.

STATEMENTS OF CASH FLOWS FOR THE ~~NIN~~ESIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2020~~2021 AND ~~2019~~2020

During the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 our ~~net cash used in operating activities was $(116,093) and comparatively the~~ net cash used by operating activities was $(242,350) and comparatively the net cash provided by operating activities in the ~~nine~~six months ended ~~September~~June 30, ~~2019~~2020 was ~~$(78,518).~~$13,596.  Net cash used by operating activities in the period ended ~~September~~June 30, ~~2020~~2021 consisted primarily of net losses from operations ~~and derivative valuations~~ of ~~$(103,320)~~$(49,183) for ~~2020~~2021 as compared to a loss of ~~$(335,352)~~$(371,205) for ~~2019.~~2020.  Depreciation adjustments ~~were~~ of non-cash expenses were ~~$6,593~~$11,673 and ~~$7,915~~$11,740 for each period, respectively. Derivative portion of convertible debt accounted for charges to income for future changes in value of the underlying stock in the amount of ~~$(143,946)~~$49,623 for the period ended ~~September~~June 30, ~~2020. None of this expense will be realized if this debt is retired before maturity.~~2021. The Company experienced a decrease in ~~accounts payable~~Accounts Payable and accrued liabilities of ~~$6,861~~$41,782 and an$112,751 for each period, respectively.  The increase ~~of $28,398 for the nine months period in 2019.  This~~ is primarily due to the Company’s ~~better standing with creditors and increased~~ ability to ~~pay debts. Cash~~apply cash receipts from investors and operations ~~are being used~~ to pay past and current creditors ~~during~~at the end of each ~~period.~~period, respectively. Accounts ~~receivable decrease~~Receivable decreased by ~~$432,391,~~$113,792, net of adjustments for contracts in process, during the period ended ~~September~~June 30, ~~2020~~2021 due to ~~contract started last year and finished rapid~~ increases in contracts ~~at the end of the period.~~compared to June 30, 2020, respectively.

Net cash ~~used and~~ provided ~~for~~by or (used for) investing activities ~~for the periods~~six months ended ~~September~~June 30, 2021 and 2020 was $1,608 and ~~2019 was $(10,129) and $4,245~~$(8,765) respectively due to receipt of principal on leases paid or terminated and equipment sales and acquisitions.

Net cash provided by financing activities ~~for the periods~~six months ended ~~September~~June 30, 2021 and 2020 was $228654 and ~~2019 was $150,246 and $119,075~~$120,230, respectively. Net cash provided by financing activities resulted primarily from the sale of ~~common stock,~~Common Stock, loans from a financial institution and loans from a Director, Officer and ~~affiliates. Cash provided by financing activities during the periods ended September 30, 2020 were primarily from the sale of common stock and loans from financial institutions.~~Directors. Any future conversions will increase the number of shares outstanding and the Stockholders Equity by the amount of the original investment. ~~Management intends to retire some of these notes before maturity.~~

LIQUIDITY AND CAPITAL RESOURCES

Our primary liquidity and capital requirements have been for carrying cost of accounts receivable after completion of contracts.  The industry ~~habitually~~typically requires ~~the~~ solar ~~contractor~~contractors to wait for the utility approval in order to be paid for ~~the~~ contracts. This process can ~~easily~~ exceed 90 days and sometimes requires the Company as the contractor to pay all or most of the cost of ~~the project~~projects without assistance from suppliers. Our working capital deficit at ~~September~~June 30, ~~2020~~2021 was ~~$(1,854,620)~~$(1,165,479) and it was ~~$(1,558,100)~~$(1,509,716) at December 31, ~~2019.~~2020.  This ~~increase~~decrease of ~~$296,520~~$344,237 was primarily due to ~~losses~~gains from conversion of debt from current to long term or discounting the debt on payoff. Also, the decrease is caused by reductions in debt overall from $1,926,206 at December 31, 2020 to $1,482,862 at June 30, 2021. Losses from operations during the six months ended June 30, 2021 also decreased from $(49,183) to $(371,205) for the same period ended ~~September~~June 30, ~~2020 and adjustments for possible future losses on derivative conversions.~~2020. Bank financing has not been available to the Company, but we have been able to increase our credit lines with our suppliers because of good credit.  There are no material covenants on our credit lines, normally due in 30 days since they are standard in the industry and the balances vary ~~on a daily basis.~~daily. Most are personally guaranteed by the ~~Officer~~CEO of the Company.

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The total borrowed from Directors ~~Affiliates~~ and officers totaled ~~$323,258~~$303,194 plus accrued interest of ~~$119,811 as of September~~$112,993 at June 30, ~~2020.~~2021. There are no existing agreements or arrangement with any Director to provide additional funds to the Company.

During the ~~nine~~six and twelve months ~~period~~ ended ~~September~~June 30, ~~2020 or the last fiscal year ended~~2021 and December 31, ~~2019~~2020 there were no transactions, or proposed transactions, which have materially affected or will materially affect the Company in which any director, executive officer, or beneficial holder of more than 5% of the outstanding common, or any of their respective relatives, spouses, associates, or affiliates, has had or will have any direct or material indirect interest. We have no policy regarding entering into transactions with affiliated parties.

PLAN OF OPERATIONS

Based on our current financial position, we cannot anticipate whether we will have sufficient working capital to sustain operations for the next year if we do not raise additional capital.  We will not, however, be able to reach our goals and projections for multistate expansion without a cash infusion.   We have been able to raise sufficient capital through the sale of our common shares and we have incurred substantial increases in debt from our trade creditors in the normal course of business.   Management will not expand the business until adequate working capital is provided.  Our ability to maintain sufficient liquidity is dependent on our ability to attain profitable operations or to raise additional capital. We have no anticipated timeline for obtaining neither additional financing nor the expansion of our business.  We will continue to keep our expenses as low as possible and keep our operations in line with available working capital as long as possible.  There is no guarantee that the Company will be able to obtain adequate capital from any sources, or at all.

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Item 3.Quantitative and Qualitative Disclosures about Market Risk

Not Applicable to Smaller Reporting Companies.
Item 4.Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures.

As of the end of the reporting period, ~~September~~June 30, ~~2020,~~2021, we carried out an evaluation, under the supervision and with the participation of our management, including the Company’s Chairman and Chief Executive Officer/Principal Accounting Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”), which disclosure controls and procedures are designed to insure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized and reported within required time periods specified by the SEC’s rules and forms. Based upon that evaluation, the Chairman/CEO and the Chief Financial Officer concluded that our disclosure controls and procedures are not currently effective in timely alerting them to material information relating to the Company required to be included in the Company’s period SEC filings. The Company is attempting to expand such controls and procedures, however, due to a limited number of resources the complete segregation of duties is not currently in place.

(b) Changes in Internal Control.

Subsequent to the date of such evaluation as described in subparagraph (a) above, there were no changes in our internal controls or other factors that could significantly affect these controls, including any corrective action with regard to significant deficiencies and material weaknesses.

(c) Limitations.

Our management, including our Principal Executive Officer and Principal Financial Officer, does not expect that our disclosure controls or internal controls over financial reporting will prevent all errors or all instances of fraud. However, we believe that our disclosure controls and procedures are designed to provide reasonable assurance of achieving this objective. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and any design may not succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures. Because of the inherent limitation of a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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PART II-OTHER INFORMATION
Item 1.Legal Proceedings

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have, individually or in the aggregate, a material adverse effect on our business, consolidated financial condition, or operating results.
Item 1A.Risk Factors

Not Applicable.
Item 2.Unregistered Sale of Equity Securities and Use of Proceeds

~~None~~
Item 3.Defaults upon Senior Securities

None
Item 4.Mine Safety Disclosures.

Not Applicable.
Item 5.Other Information

Not Applicable.

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Table of Contents
Item 6. Exhibits

Exhibit No.
Description of Exhibit
3(i)
Articles of Incorporation, as amended (1)
3(ii)
~~By-Laws (1)~~
~~10(a)~~
~~Share Exchange Agreement dated July 15, 2011~~By-Laws (1)
10(b)
~~8% of~~12% $40,000 Convertible Note dated March 16, 2016 ~~(3)~~(4)
10(c)
~~12%~~8% $25,000 Convertible Note dated March 23, 2016 ~~(3)~~(4)
10(d)
10% $55,000 Convertible Note dated April 1, 2016 ~~(4)~~(5)
10(e)
5% $42,000 Convertible Note dated April 5, 2016 ~~(4)~~(5)
10(f)
10% $40,000 Convertible Note dated May 3, 2016 ~~(4)~~(5)
10(g)
8% $30,000 Convertible Note dated May 6, 2016 ~~(4)~~
~~10(h)~~
~~Knight Capital Future Receivables Sales Agreement dated August 8, 2019 (2)~~(5)
21
Subsidiaries of Registrant (1)
31.1
Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section ~~906~~302 of the Sarbanes-Oxley Act of 2002. ~~(5)~~(2)
31.2
~~Certifications~~Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section ~~906~~302 of the Sarbanes-Oxley Act of 2002. ~~(5)~~(2)
32.1
~~Certification~~Certifications of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ~~(5)~~(2)
32.2
Certifications of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ~~(5)~~(2)
99.1
Engagement Agreement between Adams Fund LLC and ABCO Energy, Inc., dated September 15, 2015 (3)
99.2
Secured Promissory Note dated April 1, 2021 in favor of an affiliate of the Registrant’s President (6)
99.3
SBA Letter of Forgiveness of the 7/21/2020 SBA Guaranteed Note to The Bank of America (6)
101 INS
Inline XBRL Instance Document
101 SCH
Inline XBRL Taxonomy Extension Schema Document
101 CAL
Inline XBRL Taxonomy Calculation Linkbase Document
101 DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
101 LAB
Inline XBRL Taxonomy Labels Linkbase Document
101 PRE
Inline XBRL Taxonomy ~~Presentation~~Labels Linkbase Document
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
(1)
Previously filed with the Company’s Form 1010-12G, SEC File No. 000-55235 filed on July 1, 2014, and incorporated herein by this reference as an exhibit to this Form ~~10-Q.~~10-K.
(2)
Attached.
(3)
Previously filed with the Company’s Form ~~10-Q~~8-K filed ~~with the Commission~~ on ~~August 19, 2019~~September 17, 2015, and incorporated herein by this ~~reference.~~reference as an exhibit to this Form 10-K.
~~(3)~~(4)
Previously filed with the Company’s Form 10-K, File No. 000-55235, filed with the Commission on April 11, 2016 and incorporated herein by this reference.
~~(4)~~(5)
Previously filed with the Company’s Form 10-Q, File No. 000-55235, filed with the Commission on May 20, 2016 and ~~incorporated~~incorporate herein by this reference.
~~(5)~~(6)
~~Attached.~~Previously filed with the Company Form 10-K, File No. 000-55235, filed with the Commission on April 15, 2021 and incorporated herein by this reference.

26
Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report or amendment thereto to be signed on its behalf by the undersigned thereunto duly authorized.

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

~~November~~August 23, ~~2020~~2021

ABCO ENERGY, INC
/s/ David Shorey
David Shorey
Title: ~~Acting~~ President ~~and~~ &
Chief Executive Officer (CEO)
/s/ David Shorey
David Shorey
~~Acting~~ Chief Financial Officer (CFO)
~~Acting~~ Principal Accounting Officer (PAO)

27

ASSETS	September 30, 2020 Unaudited			December 31, 2019 Audited
Current Assets
Cash	$	36,644		$	12,620
Accounts receivable on completed projects		31,242			30,408
Costs and estimated earnings on contracts in progress		-			243,693
Amortizable original issue discounts on debt		32,213			89,561
Total Current Assets		100,099			376,282
Fixed Assets
Real Estate, Vehicles, furniture & equipment – net of accumulated depreciation		354,748			354,938
Other Assets
Investment in long term leases		3,995		$	4,136
Security deposits		2,700			5,200
Total Other Assets		6,695			9,336
Total Assets	$	461,542		$	740,556


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses	$	590,561		$	583,700
Costs and estimated earnings on contracts in progress		189,532			-
Short-term notes payables		171,805			436,267
Excess billing on contracts in progress		194,401			76,052
Derivative liability on convertible debentures		143,946			97,974
Notes payable – from officers		323,258			248,558
Convertible debenture		324,499			472,971
Current portion of long term debt		16,717			18,860
Total Current Liabilities		1,954,719			1,934,382

Long term debt, net of current portion		561,899			300,000
Total Liabilities		2,516,618			2,234,382

Commitments and contingencies		-			-

Stockholders’ Deficit:
Preferred stock, 100,000,000 shares authorized, $0.001 par value, and 30,000,000 shares issued and outstanding at September 30, 2020 and 30,000,000 at December 31, 2019.		30,000			30,000
Common stock 5,000,000,000 shares authorized, $0.001 value, and 1,516,109,317 Issued and outstanding at September 30, 2020 and 150,590,887 outstanding at December 31, 2019, respectively.		1,516,109			150,591
Common shares sold not issued 5,000,000 at September 30, 2020 and -0- at December 31, 2019		5,000			-
Additional paid-in capital		3,754,485			4,887,091
Accumulated deficit		(7,360,670	)		(6,561,508	)
Total Stockholders’ Deficit		(2,055,076	)		(1,493,826	)
Total Liabilities and Stockholders’ Deficit	$	461,542		$	740,556

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019

Revenues	$	246,102		$	512,988		$	768,133		$	1,626,614

Cost of Sales		281,419			325,366			715,739			1,004, 252

Gross Profit		(35,317	)		187,622			52,394			622,362

Operating Expenses:
Payroll		9,645			90,720			94,126			304,309
Payroll taxes		30,085			12,070			57,215			46,258
Share based expense		-			-			14,500			-
Consulting		25,019			15,067			45,028			39,604
Corporate expense		13,998			14,962			32,449			34,055
Professional fees		45,273			21,301			92,564			96,733
Rent		8,311			8,362			25,536			26,137
Insurance		40,429			12,176			60,239			49,064
Other administrative expenses		17,099			31,848			233,612			112,212
Total operating expense		189,859			206,506			655,269			708,372

Net income (Loss) from operations		(225,176	)		(18,884	)		(602,875	)		(86,010	)

Other expenses
Interest on notes payable		(20,975	)		(105,010	)		(37,657	)		(210,998	)
Loss on note issuance derivatives		(25,836	)
Change in Derivative Gain (Loss)		(157,575	)		64,093			(157,575	)		(113,840	)
Finance Fees – derivatives		1,605			(57,075	)		(1,055	)		(57,075	)
Gain (Loss) on extinguishment of debt											(244,712	)
Total other expenses		(202,781	)		(97,992	)		(196,287	)		(626,625	)

Net (Loss) before provision for income taxes		(427,957	)		(116,876	)		(799,162	)		(712,635	)

Provision for income tax		-			-			-			-

Net (loss)	$	(427,957	)	$	(116,876	)	$	(799,162	)	$	(712,635	)

Net (loss) Per Share (Basic and Fully Diluted)	$	(.01	)	$	(.01	)	$	(.01	)	$	(.01	)

Weighted average number of common shares used in the calculation – Adjusted for reversal		1,280,322,222			63,392,630			835,850,102			47,639,460

	Common Stock
	Shares		Amount $0.001 Par		Preferred Stock		Additional Paid in Capital			Accumulated Deficit			Total Stockholders’ Deficit
Balance at December 31, 2018		32,756,288	$	32,756	$	30,000	$	4,379,793		$	(5,180,431	)	$	(737,882	)
Common shares issued under private placement offering - net of expenses		4,740,000		4,740				75,516						80,256
Common shares issued for conversion of convertible debenture notes - net of expenses		113,094,599		113,095				30,132						143,227
Re-class derivative liability from conversion								401,650						401,650
Net (loss) for the year											(1,381,327	)		(1,381,327	)
Balance at December 31, 2019		150,590,887	$	150,591	$	30,000	$	4,887,091		$	(6,561,508	)	$	(1,493,826	)
Common shares issued for conversion of convertible debenture notes - net of expenses		1,365,518,430		1,365,518				(1,090,281	)					275,237
Shares to be issued for compensation		5,000,000		5,000				9,500						14,500
Expenses of capital stock issuances								(23,000	)					(23,000	)
Derivative changes to APIC								(28,825	)					(28,825	)
Net (loss) for the nine months ended September 30, 2020											(799,162	)		(799,162	)
Balance at September 30 2020		1,521,109,317	$	1,521,109	$	30,000	$	3,754,485		$	(7,360,670	)	$	(2,055,076	)

	September 30,			September,
	2020			2019
Cash Flows from Operating Activities:
Net income (loss)	$	(799,162	)	$	(712,635	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation		6,593			7,915
Shares issued for compensation		14,500
Inventory change		-			(7921	)
Change in amortizable debt discount		-			14,662
Finance fees on derivatives		1,055			57,075
Change in derivative liability		45,972			113,841
Gain or loss on extinguishment of debt		-			244,712
Changes in Accounts receivable on incomplete projects		432,391			145,542
Change in prepaid expense and OID		57,348			(23,201	)
Billings in excess of costs on incomplete projects		118,349			109,890
Accounts payable and accrued expenses		6,861			(28,398	)
Net cash used in operating activities		(116,093	)		(78,518	)

Cash flows from investing activities
Equipment purchased		(12,770	)		(2,213	)
Change in security deposits		2,500			-
Proceeds from investments in long term leases		141			6,458
Net cash provided by (used for) investing activities		(10,129	)		4,245

Cash Flows from Financing Activities:
Proceeds from sale of common stock – net of expenses		237,912			15,867
Proceeds of affiliate loans		74,700			25,417
Proceeds from merchant loans		-			209,500
Payments on merchant notes		(57,470	)		(170,517	)
Payments or proceeds from material lender – net of expenses		(206,993	)		(46,192	)
Payments or proceeds on long term debt		259,756			-
Proceeds from convertible note payable		(73,058	)		362,000
Payments and conversion of convertible notes		(84,601	)		(277,000	)
Net cash provided by financing activities		150,246			119,075

Net increase (decrease) in cash		24,024			44,802
Cash, beginning of period		12,620			67,707
Cash, end of period	$	36,644		$	112,509

Cash paid for interest	$	37,657	$	210,998
Income taxes paid or accrued		-		-
Share based compensation	$	14,500	$	-

Sales Product and Services Description	September 30, 2020				September 30, 2019
Solar PV residential and commercial sales	$	615,687	70	%	$	1,574,349	98	%
Air conditioning sales and service		77,018	15	%
Energy efficient lighting & other income		75,219	15	%		51,733	2	%
Interest Income		209	-	%		532	-	%
Total revenue	$	768,133	100	%	$	1,626,614	100	%

Sales Product and Services Description	June30, 2021				June 30, 2020
Solar PV residential and commercial sales	$	635,381	82	%	$	392,441	75	%
Air conditioning sales and service		6,540	1	%		129,251	24
Energy efficient lighting & other income		126,374	17	%		0	0	%
Interest Income		104	0	%		339	1	%
Total revenue	$	768,399	100	%	$	522,031	100	%

Description	September 30, 2020		September 30, 2019
Accounts receivable on completed contracts	$	31,242	$	30,408
Costs and estimated earnings on contracts in progress		-		243,693
Total	$	31,242	$	274,101

Description	June 30, 2021		December 31, 2020
Accounts receivable on completed contracts	$	37,231	$	43,221
Costs and estimated earnings on contracts in progress		211,199		319,001
Total	$	248,430	$	362,222

	September 30,			December 31,
Asset	2020			2019
Land and Building	$	326,400		$	326,400
Equipment		134,326			121,556
Accumulated depreciation		(105,978	)		(93,018	)
Fixed Assets, net of accumulated depreciation	$	354,748		$	354,938

Description	September 30, 2020		December 31, 2019
Notes payable – Director bearing interest at 12% per annum, unsecured, demand notes.	$	60,000,	$	60,000
Note payable – Mr. O’Dowd bearing interest at 12% per annum, unsecured, demand note		61,052		61,052
Note payable – other bearing interest at 12% per annum, unsecured, demand note.		202,206		127,506
Total	$	323,258	$	248,558

Holder	Date of Loan		Loan amount		OID and discounts and fees		Interest rate			Balance December 31, 2019		Balance September 30, 2020
Power Up Lending Group Ltd		5-13-19	$	96,300	$	13,300		8	%	$	4,300	$	0
Power Up Lending Group Ltd		8-14-19		68,000		13,000		8	%		68,000		0
Power Up Lending Group Ltd		9-11-19		76,000		13,000		8	%		76,000		57,450
Crown Bridge Tranche 1		8-8-19		50,000		5,000		8	%		50,000		23,540
Oasis Capital		9-1-18		150,000		124,671					274,671		243,509
Totals and balances for 6-30-2020			$	442,300	$	164,471				$	472,971	$	324,499

Holder	Date of Loan		Loan amount		OID and discounts and fees		Interest rate			Balance June 30, 2021		Balance December 31, 2020
Power Up Lending Group Ltd		3-29-21		80,000		20,600		12	%		89,600		0
Power Up Lending Group Ltd		5-25-21		48,750		13,987		12	%		53,625		0
Oasis Capital		1-22-20		189,000		17,758		8	%		30,458		150,553
Oasis Capital		9-1-18		150,000		0		8	%		3,264		3,264
Totals and balances			$	442,300	$	71,658				$	176,947	$	153,817

Holder	Date issued		Interest rate			Amount due September 30, 2020		Amount due December 31, 2019
Real Estate Note Allen-Neisen Family trust – Et. Al.		12-31-19		5	%	$	291,914	$	300,000
US Treasury EIDL payroll loan (Forgivable		5-04-20		1	%		124,099		-
US Treasury SBA guaranteed loan		7-21-20		3.75	%		149,900		-
Ascentium Capital		10-1-18		13	%		7,024		11,192
Fredrick Donze		9-2-18		6	%		3,733		4,043
Charles O’Dowd (officer)		8-9-18		6	%		1,946		3,625
Total long term debt							578,616		318,860
Less Current portion							16,717		18,860
Total long-term debt						$	561,899	$	300,000

Holder	Date issued		Interest rate			Amount due June 30, 2021		Amount due December 31, 2020
Real Estate Note Allen-Neisen Family trust – Et. Al.		12-31-19		5.00	%	$	285,600	$	290,271
US Treasury SBA guaranteed loan		7-21-20		3.75	%		150,000		150,000
Ascentium Capital		10-1-18		13.00	%		5,580		6,998
Fredrick Donze		9-2-18		6.00	%		327		2,274
Charles O’Dowd promissory note		6-15-21		5.00	%		70,500		0
Charles O’Dowd – former officer truck loan		8-9-18		6.00	%		0		2,560
GMAC Chev truck		10-20-20		5.99	%		22,127		23,574
Mechanics Bank – Chev Truck		12-12-20		8.99	%		22,276		24,318
Total long-term debt							556,410		499,995
Less Current portion							44,022		27,702
Total long-term debt						$	512,388	$	472,293

Capital Company	Shares converted		Dollars converted
Crown Bridge Partners		99,000,000	$	8,880
Power Up		170,000,000		40,800
Oasis Capital		1,097,220,189		24,884
Total		1,366,220,189	$	74,564

	Three Months Ended June 30, 2021				During the Year Ended December 31, 2020
Capital Company	Shares converted		Dollars converted		Shares converted		Dollars converted
Crown Bridge Partners		0	$	0		2,300,000	$	46,540
Power Up		0		0		1,633,968		57,450
Oasis Capital		18,973,258		147,423		5,173,328		125,775
Total		18,973,258	$	147,423		9,107,296	$	229,765

Outstanding Equity Awards After Fiscal Year-End (1)
Name	Number of securities underlying unexercised options exercisable (1)			Number of securities underlying unexercised options un-exercisable (2)		Option Exercise Price ($)		Option Grant Date	Option Expiration Date
Charles O’Dowd		500,000	(3)		0	$	.001	01/01/2017	01/01/2021
Wayne Marx		500,000			0	$	.001	01/01/2017	01/01/2021
Mikael Mildebrandt		1,000,000	(4)		8	$	.001	11/01/2019	11/01/2013
Adrian Balinski		1,000,000	(4)		8	$	.001	11/01/2019	11/01/2023

(2)	All options vest 20% per year beginning on the first anniversary of their grant date.
(3)	~~This option was terminated when Mr. O’Dowd resigned from the Company in October 2019.~~
~~(4)~~	Messrs. Mildebrandt and Balinski were each awarded ~~1,000,000~~3,704 shares of restricted common stock as of October 31, ~~2019,~~2020, for being officers and directors of the Company.
(4)	~~(5)~~	~~Messers.~~Mr. Mildebrandt and Mr. Balinski have resigned as officers and directors.
(5)	Mr. Charles O’Dowd, former president of ABCO, resigned on October 7, 2019. All options previously issued to Mr. O’Dowd expired on January 1, 2021 and none were exercised at any time.

Exhibit No.		Description of Exhibit

3(i)		Articles of Incorporation, as amended (1)
3(ii)	~~By-Laws (1)~~
~~10(a)~~	~~Share Exchange Agreement dated July 15, 2011~~By-Laws (1)
10(b)		~~8% of~~12% $40,000 Convertible Note dated March 16, 2016 ~~(3)~~(4)
10(c)		~~12%~~8% $25,000 Convertible Note dated March 23, 2016 ~~(3)~~(4)
10(d)		10% $55,000 Convertible Note dated April 1, 2016 ~~(4)~~(5)
10(e)		5% $42,000 Convertible Note dated April 5, 2016 ~~(4)~~(5)
10(f)		10% $40,000 Convertible Note dated May 3, 2016 ~~(4)~~(5)
10(g)		8% $30,000 Convertible Note dated May 6, 2016 ~~(4)~~
~~10(h)~~	~~Knight Capital Future Receivables Sales Agreement dated August 8, 2019 (2)~~(5)
21		Subsidiaries of Registrant (1)
31.1		Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section ~~906~~302 of the Sarbanes-Oxley Act of 2002. ~~(5)~~(2)
31.2		~~Certifications~~Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section ~~906~~302 of the Sarbanes-Oxley Act of 2002. ~~(5)~~(2)
32.1		~~Certification~~Certifications of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ~~(5)~~(2)
32.2		Certifications of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ~~(5)~~(2)
99.1		Engagement Agreement between Adams Fund LLC and ABCO Energy, Inc., dated September 15, 2015 (3)
99.2		Secured Promissory Note dated April 1, 2021 in favor of an affiliate of the Registrant’s President (6)
99.3		SBA Letter of Forgiveness of the 7/21/2020 SBA Guaranteed Note to The Bank of America (6)
101 INS		Inline XBRL Instance Document
101 SCH		Inline XBRL Taxonomy Extension Schema Document
101 CAL		Inline XBRL Taxonomy Calculation Linkbase Document
101 DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101 LAB		Inline XBRL Taxonomy Labels Linkbase Document
101 PRE		Inline XBRL Taxonomy ~~Presentation~~Labels Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
(1)		Previously filed with the Company’s Form 1010-12G, SEC File No. 000-55235 filed on July 1, 2014, and incorporated herein by this reference as an exhibit to this Form ~~10-Q.~~10-K.
(2)		Attached.
(3)		Previously filed with the Company’s Form ~~10-Q~~8-K filed ~~with the Commission~~ on ~~August 19, 2019~~September 17, 2015, and incorporated herein by this ~~reference.~~reference as an exhibit to this Form 10-K.
~~(3)~~(4)		Previously filed with the Company’s Form 10-K, File No. 000-55235, filed with the Commission on April 11, 2016 and incorporated herein by this reference.
~~(4)~~(5)		Previously filed with the Company’s Form 10-Q, File No. 000-55235, filed with the Commission on May 20, 2016 and ~~incorporated~~incorporate herein by this reference.
~~(5)~~(6)		~~Attached.~~Previously filed with the Company Form 10-K, File No. 000-55235, filed with the Commission on April 15, 2021 and incorporated herein by this reference.

	ABCO ENERGY, INC


	/s/ David Shorey
	David Shorey
	Title: ~~Acting~~ President ~~and~~ &
	Chief Executive Officer (CEO)



	/s/ David Shorey
	David Shorey
	~~Acting~~ Chief Financial Officer (CFO)
	~~Acting~~ Principal Accounting Officer (PAO)