UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 



Form 10-Q


 

xQuarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the Quarterly Period ended September 30, 20172018

 

oTransition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Commission file number: 000-27866


 

POWERVERDE, INC.

(Exact name of Registrant as specified in its charter)


 

Delaware 88-0271109
(State or other jurisdiction of
incorporation or organization)
 (IRS Employer
Identification No.)

 

4209300 S. Dixie Highway Suite 4-BDadeland Blvd, Ste 600

Coral Gables,Miami, FL 3314633156

(Address of principal executive offices)

 

(305) 666-0024670-3370

(Registrant’s telephone number including area code)

 

(Former name, former address and former fiscal year, if changed since last report)

 


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for 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.  x  Yes  o  No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).  x Yes  o  No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

☐ oLarge accelerated filer ☐oAccelerated filer
☐ oNon-accelerated filer ☒xSmaller reporting company

 

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

 

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: As of November 14, 20179, 2018, the issuer had 31,750,106 shares of common stock outstanding.

 

 

Index to Form 10-Q

 

   
  PagePage
PART IFINANCIAL INFORMATION1
   
Item 1.Condensed Consolidated Financial Statements (Unaudited)1
 Condensed Consolidated Balance Sheets at September 30, 20172018 (Unaudited) and December 31, 201620171
 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 20172018 and 20162017 (Unaudited)2
 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 20172018 and 20162017 (Unaudited)3
 Notes to Unaudited Condensed Consolidated Financial Statements4
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations911
Item 3.Quantitative and Qualitative Disclosures about Market Risk1214
Item 4.Controls and Procedures1214
   
PART IIOTHER INFORMATION1315
   
Item 1.Legal Proceedings1315
Item 1A.Risk Factors1315
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds1315
Item 3.Defaults upon Senior Securities1315
Item 4.Mine Safety Disclosures1315
Item 5.Other Information1315
Item 6.Exhibits1416
  
SIGNATURES1517

 

 

PART I FINANCIAL INFORMATION

 

Item 1. Condensed Consolidated Financial Statements

 

PowerVerde, Inc. and Subsidiary

Condensed Consolidated Balance Sheets

September 30, 2017 (Unaudited) and December 31, 2016

PowerVerde, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
September 30, 2018 (Unaudited) and December 31, 2017

 

 2017 2016 2018 2017
Assets                
Current Assets:                
Cash and cash equivalents $7,476  $4,786 
Cash $37,084  $1,336 
Accounts receivable  108,686   170,539   10,304   369,959 
Liberty note receivable  25,000    
Prepaid expenses and other current assets  11,334   56,628 
Note receivable     34,000 
Prepaid expenses  17,990   8,694 
Total Current Assets  152,496   231,953   65,378   413,989 
                
Property and Equipment                
Property and equipment, net of accumulated depreciation of $95,853 and $85,156, respectively  11,788   22,484 
Property and equipment, net of accumulated depreciation of $106,327 and $99,418, respectively  1,313   8,222 
                
Other Assets                
Intellectual Property, net of accumulated amortization of $686,854 and $677,716  5,420   14,558 
License, net of accumulated amortization of $13,322 and $5,822, respectively  86,678   94,178 
Intellectual Property, net of accumulated amortization of $692,274 and $689,900     2,374 
License, net of accumulated amortization of $23,322 and $15,822, respectively  76,678   84,178 
Total Other Assets  92,098   108,736   76,678   86,552 
Total Assets $256,382  $363,173  $143,369  $508,763 
                
Liabilities and Stockholders’ Deficiency                
Current Liabilities                
Accounts payable and accrued expenses $80,766  $79,073  $3,211  $95,310 
Note payable to related parties  200,000   425,000      150,000 
Total Current Liabilities  280,766   504,073   3,211   245,310 
Total Liabilities  280,766   504,073   3,211   245,310 
                
Stockholders’ Deficiency                
Preferred Stock:                
50,000,000 preferred shares authorized, 0 preferred shares issued at September 30, 2017 and December 31, 2016      
50,000,000 preferred shares authorized, 0 preferred shares issued at September 30, 2018 and December 31, 2017      
Common stock:                
200,000,000 common shares authorized, par value $0.0001 per share, 31,750,106 common shares issued and outstanding at September 30, 2017 and December 31, 2016  3,981   3,981 
200,000,000 common shares authorized, par value $0.0001 per share, 40,300,106 common shares issued and 31,750,106 common shares outstanding at September 30, 2018 and December 31, 2017  3,981   3,981 
Additional paid-in capital  12,129,331   12,129,331   12,609,980   12,129,331 
Treasury stock, 8,550,000 shares at cost  (491,139)  (491,139)  (491,139)  (491,139)
Accumulated deficit  (11,666,557)  (11,783,073)  (11,982,664)  (11,378,720)
Total Stockholders’ Deficiency  (24,384)  (140,900)  140,158   263,453 
                
Total Liabilities and Stockholders’ Deficiency $256,382  $363,173  $143,369  $508,763 

 

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

 


PowerVerde, Inc. and Subsidiary

Condensed Consolidated Statements of Operations

For the three and nine months ended September 30, 2017 and 2016

(Unaudited)

PowerVerde, Inc. and Subsidiary
Condensed Consolidated Statements of Operations
For the three and nine months ended September 30, 2018 and 2017
(Unaudited)

 

  Three months ended
September 30,
   Nine months ended
September 30,
  2017 2016 2017 2016
         
Revenue $133,686  $89,118  $473,485  $417,074 
                 
Operating Expenses                
Research and development  78,371   177,885   172,760   282,339 
General and administrative  45,635   55,485   160,533   262,599 
Total Operating Expenses  124,006   233,370   333,293   544,938 
                 
Income (Loss) from Operations  9,680   (144,252)  140,192   (127,864)
                 
Other Income (Expenses)                
Interest income        50    
Interest expense  (5,589)  (17,338)  (23,726)  (45,898)
Total Other Income (Expense)  (5,589)  (17,338)  (23,676)  (45,898)
                 
Income (Loss) before Income Taxes  4,090   (161,590)  116,516   (173,761)
Provision for Income Taxes            
                 
Net Income (Loss) $4,090  $(161,590) $116,516  $(173,761)
                 
Net Income (Loss) per Share - Basic and Diluted $0.000  $(0.005) $0.004  $(0.005)
                 
Weighted Average Common Shares Outstanding - Basic and Diluted  31,750,106   31,750,106   31,750,106   31,750,106 

  Three months ended
September 30,
 Nine months ended
September 30,
  2018 2017 2018 2017
         
Revenue $8,000  $133,686  $173,094  $473,485 
                 
Operating Expenses                
Research and development  71,415   78,371   596,128   172,760 
General and administrative  47,511   45,635   181,832   160,533 
Total Operating Expenses ��118,926   124,006   777,960   333,293 
                 
Income (Loss) from Operations  (110,926)  9,680   (604,866)  140,192 
                 
Other Income (Expenses)                
Interest income        1,621   50 
Interest expense     (5,589)  (699)  (23,726)
Total Other Income (Expense)     (5,589)  922   (23,676)
                 
Income (Loss) before Income Taxes  (110,926)  4,090   (603,944)  116,516 
Provision for Income Taxes            
                 
Net Income (Loss) $(110,926) $4,090  $(603,944) $116,516 
                 
Net Income (Loss) per Share - Basic and Diluted $0.00  $0.00  $0.02  $0.00 
                 
Weighted Average Common Shares Outstanding - Basic and Diluted  31,750,106   31,750,106   31,750,106   31,750,106 

 

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

 


PowerVerde, Inc. and Subsidiary

Condensed Consolidated Statements of Cash Flows

For the nine months ended September 30, 2017 and 2016

(Unaudited)

PowerVerde, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
For the nine months ended September 30, 2018 and 2017
(Unaudited)

 

 2017 2016 2018 2017
Cash Flows From Operating Activities                
Net income (loss) $116,516  $(173,761) $(603,944) $116,516 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                
Depreciation and amortization  27,334   23,259   16,783   27,334 
Amortization of discount     12,920 
Stock based compensation     202,065   480,649    
Changes in operating assets and liabilities:                
Accounts receivable and prepaid expenses  82,147   112,946   350,359   82,147 
Accounts payable and accrued expenses  1,693   (3,786)  (92,099)  1,693 
Payable to related parties     (26,000)
Note receivable  34,000    
                
Cash Provided by Operating Activities  227,690   147,643   185,748   227,690 
                
Cash Flows from Financing Activities                
Proceeds from note payable, related party     25,000 
Principal payments on notes payable, related parties  (225,000)  (25,000)  (150,000)  (225,000)
Principal payments on notes payable     (147,569)
                
Cash (Used in) Provided by Financing Activities  (225,000)  (147,569)
Cash Used in Financing Activities  (150,000)  (225,000)
                
Net Increase in Cash and Cash Equivalents  2,690   74 
Net Increase in Cash  35,748   2,690 
                
Cash and Cash Equivalents at Beginning of Period  4,786   5,601 
Cash at Beginning of Period  1,336   4,786 
                
Cash and Cash Equivalents at End of Period $7,476  $5,675 
Cash at End of Period $37,084  $7,476 
                
Supplemental Disclosure of Cash Flow Information                
Cash paid during the period for interest $38,664  $24,175  $699  $38,664 
Cash paid during the period for income taxes $  $ 
        
Supplemental Disclosure of Non-Cash Activities                 
Note Receivable in connection with Liberty accounts receivable $25,000  $ 
Note Receivable in connection with IP acquisition $  $100,000 
Accounts receivable converted to note receivable $  $25,000 

 

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

 


PowerVerde, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

September 30, 20172018

 

Note 1 – Condensed Consolidated Financial Statements

 

The accompanying unaudited condensed consolidated financial statements prepared in accordance with instructions for Form 10-Q, include all adjustments (consisting only of normal recurring accruals) which are necessary for a fair presentation of the results for the periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the Annual Report of PowerVerde, Inc. (“PowerVerde,” “we,” “us,” “our,” or the “Company”) as of and for the year ended December 31, 2016.2017. The results of operations for the three and nine months ended September 30, 2017,2018, are not necessarily indicative of the results to be expected for the full year or for future periods. The condensed consolidated financial statements include the accounts of PowerVerde, Inc., formerly known as Vyrex Corporation (the “Company”), and PowerVerde Systems, Inc., formerly known as PowerVerde, Inc., its wholly-owned subsidiary. Intercompany balances and transactions have been eliminated in consolidation.

 

Note 2 – Going Concern

 

We have financed our operations since inception through the sale of debt and equity securities and through Biotech IP licensing revenues. As of September 30, 2017,2018, we had a working capital deficit of $128,270$62,167 compared to a working capital deficit of $272,120$168,679 at December 31, 2016.2017. This improvementdecrease in working capital is due primarily to reductions in notes payable to related parties, accounts payable and accrued expenses resulting from positive operating cash flows during this period.

We expect 2017 Biotech IP revenues to approximate the 2016 levels; however, there can be no assurance that this revenue level will be achieved. Further, our contract which providesexpiration of our Biotech IP licensing revenues expires in March 2018 and we will therefore be without a sourcethe repayment of working capital at that time unless we can generate material revenues from operations and/or the Liberty Agreement or raise substantial additional capital, as to which there can be no assurance. See Note 9 – Commitments and Contingencieslong-term related party note payables.

 

In orderThe Company has historically relied upon unrelated and related party debt and equity financing to meet our obligationsfund its cash flow shortages and will require either additional debt or equity financing to sustain its operations. The Company’s revenues in prior years and through March 31, 2018 were derived mainly from royalties under its Biotech licensing agreement, which expired in March 2018. Those factors create substantial doubt about the $150,000 balance (as of October 2017) of our secured notes payableCompany’s ability to related parties due April 30, 2018 (the “Notes”), which are collateralized by our Biotech IP receivables, we intend to apply most of the Biotech IP revenues received in 2017 and 2018 toward payment of the interest and principal due on the Notes, after reserving the minimum amount necessary to maintain our operations. We intend to reduce our salary and consulting fee expenses until the Notes are paid in full, and we are also commencingcontinue as a new source of revenue by using our employee to provide part-time skilled manufacturing services to a third party pursuant to the Liberty Agreement.going concern.

 

We continueThe Company continues to seek funding from private debt and equity investors, as we needit needs to promptly raise substantial additional capital in order to finance ourits plan of operations. There can be no assurance that wethe Company will be able to promptly raise the necessary funds on commercially acceptable terms, if at all. If we dothe Company does not raise the necessary funds, weit may be forced to cease operations.

 

Note 3 – Summary of Significant Accounting Policies

 

Nature of Business

 

The Company is devoting substantially all of its present efforts to establish a new business involving the development and commercialization of clean energy electric power generation systems, and none of its planned principal operations have commenced. However, royalties from licenses unrelated to planned principal operations continue to bewere recognized as revenue. The license will expire inrevenue through March 2018, after which no further royaltywhen the underlying license agreement terminated. No revenues are expected.


Cash Equivalentsfrom this planned principal operation have been generated.

 

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Accounts Receivable

 

Accounts receivable consist of balances due fromfor royalties in connection with the license agreement with VDF FutureCeuticals, Inc.(2017) and assembly services (2018). The Company monitors accounts receivable and provides allowances when considered necessary. At September 30, 2017,2018, accounts receivable were considered to be fully collectible. Accordingly, no allowance for doubtful accounts was provided.

 

NotesNote Receivable

 

Note receivable consistsconsisted of revenuesamounts due from Liberty Plugins, Inca customer in connection with the manufacturing assembly agreement dated April 15, 2017. At September 30, 2017, notes receivable were considered to be fully collectible.The note was paid in full in June 2018, along with accrued interest in the amount of $371.

 

Revenue Recognition

 

Revenue from royaltyroyalties and assembly agreementsservices are unrelated to the Company’s planned operationsoperations. Royalties were recognized as earned in the period the sales to which the royalties relate occur. Manufacturing assembly services are recognized as revenue when the assembled product is recognized in accordance withdelivered to the terms of the specific agreements.customer. Revenues recognized under these agreements amount to 100% of total revenues for the nine months ended September 30, 20172018 and 2016. The Company does not expect any significant impact of the adoption of the standard on our financial statements based on the current sources of revenue.2017.

 

Property and Equipment

 

Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Expenditures for major betterments and additions are capitalized, while replacement, maintenance and repairs, which do not extend the lives of the respective assets, are expensed as incurred.

 

Impairment of Long-Lived Assets

 

Impairment losses are recorded on long-lived assets (property, equipment, license and intellectual property) used in operations when impairment indicators are present and the undiscounted expected cash flows estimated to be generated by those assets are less than the carrying value of such assets. No impairment losses have been recognized during the nine months ended September 30, 20172018 or 2016.2017.

 

Stock-based Compensation

 

The Company has accounted for stock-based compensation under the provisions of ASC Topic 718 – “Stock Compensation”which requires the use of the fair-value based method to determine compensation for all arrangements under which employees and others receive shares of stock or equity instruments (stock options and common stock purchase warrants). The fair value of each stock option award is estimated on the date of grant using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. Expected volatilities are based on historical volatility of peer companies and other factors estimated over the expected term of the stock options. The expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus the contract term. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term.

 


Common Stock Purchase Warrants

 

The Company accounts for common stock purchase warrants in accordance with ASC Topic 815- 40, “Derivatives and Hedging – Contracts in Entity’s Own Equity” (“ASC 815-40”). Based on the provisions of ASC 815- 40, the Company classifies as equity any contracts that (i) require physical settlement or net-share settlement, or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company, or (ii) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). All outstanding warrants as of December 31, 20162017 and September 30, 20172018 were classified as equity.

 

Accounting for Uncertainty in Income Taxes

 

The Company follows the provisions of ASC Topic 740-10, “Accounting for Uncertainty in Income Taxes” which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This topic also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

 

Research and Development Costs

 

The Company’s research and development costs are expensed in the period in which they are incurred. Such expenditures amounted to $172,760$596,128 and $282,339$172,760 for the nine months ended September 30, 20172018 and 2016,2017, respectively.

 

Earnings (Loss) Per Share

 

Earnings (loss) per share is computed in accordance with FASB ASC Topic 260, “Earnings per Share”. Diluted earnings per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities outstanding during the period. Certain common stock equivalents were not included in the earnings (loss) per share calculation as their effect would be anti-dilutive. Warrants exercisable for4,175,0001,375,000shares and options for 5,750,50011,180,500 shares were excluded from weighted average common shares outstanding on an anti-diluteda diluted basis.

 

Financial instrumentsInstruments

 

The Company carries cash and cash equivalents, accounts receivable, note receivable, accounts payable, and accrued expenses and notes payable, at historical costs. The respective estimated fair values of these assets and liabilities approximate carrying values due to their current nature. The Company also carries notes payable to related parties at historical cost less discounts from warrants issued as loan financing costs. The fair value of such notes is significantly similar to the face value of the notes ($200,000).

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.


Note 4 – Recent Accounting Pronouncements

 

ReferIn May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“Topic 606”). Topic 606 supersedes the revenue recognition requirements in ASU Topic 605, Revenue Recognition (“Topic 605”), and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 also includes Subtopic 340-40,Other Assets and Deferred Costs- Contracts with Customers, which discussed the deferral of incremental costs of obtaining a contract with a customer, including the period of amortization of such costs. The new standard was adopted by the Company in our fiscal year beginning January 1, 2018.

The two permitted transition methods under the new standard were the full retrospective method, in which the new standard would be applied to each prior reporting period presented and the cumulative effect of applying the new standard would be recognized at the earliest period shown, or the modified retrospective method, in which the cumulative effect of applying the new standard would be recognized at the date of initial application. Based on our assessment, the impact of the new standard on our revenue recognition in prior periods was not significant; accordingly, while the Company would have used the modified retrospective method of adoption of the new standard, there was no cumulative effect of adoption on January 1, 2018 retained earnings.

We have reviewed each of our current contracts for the related performance obligations and related revenue and expense recognition implications. A performance obligation under the new revenue standard is defined as a promise to provide a “distinct” good or service to a customer. The Company has determined that the assembly services is a performance obligation for which a transaction price has been established in the manufacturing agreement. The assembly of each unit stands on its own. Revenue related to assembly services is recognized as revenue when the assembled product is delivered to the consolidated financial statements and footnotes thereto includedcustomer. The Company has also determined that the performance obligation associated with our royalty revenues was the ongoing delivery of the license to which the royalties relate. Royalty revenues were recognized based on the contract royalty rate applied to licensee sales in the PowerVerde, Inc. Annual Reportperiods during which such sales occur.

In February 2016, the FASB issued ASU 2016-02,“Leases,”which created a new Topic, ASC Topic 842 and established the core principle that a lessee should recognize the assets, representing rights-of-use, and liabilities to make lease payments that arise from leases. For leases with a term of 12 months or less, a lessee is permitted to make an election under which such assets and liabilities would not be recognized, and lease expense would be recognized generally on Form 10-Ka straight-line basis over the lease term. This ASU is effective for public entities for interim and annual reporting periods beginning after December 15, 2018, and early application is permitted. The Company has evaluated the year ended December 31, 2016 for recent accounting pronouncements. Other pronouncements have been issued but the Companypotential impact of this guidance and does not believe that their adoptionit will have a significantmaterial impact on the Company’s financial position or resultsstatements.

In June 2018, the FASB issued ASU 2018-07,“Compensation – Stock Compensation (Topic 718).”ASU 2018-07 simplifies the accounting for nonemployee stock-based payment transactions. This ASU is effective for public entities for interim and annual reporting periods beginning after December 15, 2018, and early application is permitted. The Company has evaluated the potential impact of operations.this guidance and does not believe it will have a material impact on the Company’s financial statements.

 

Note 5 – Intellectual Property and License Agreement

 

Intellectual Property partially consists of technology acquired from the purchase of 100% of the membership interests of Cornerstone Conservation Group LLC (“Cornerstone”) on March 30, 2012 for $659,440. Accumulated amortization with respect to this intellectual property was $659,440 at September 30, 20172018 and December 31, 2016.2017.

 

On June 30, 2015, the Company entered into an Assignment Agreement with VyrexIP Holdings Inc., a company owned by Company shareholder Edward Gomez, for the purchase of intellectual property. The net price of these assets was comprised of a down payment of $16,116 and a $58,436 promissory note to the seller due July 15, 2016, partially offset by assignment by the seller to the Company of a $38,000 promissory note due November 14, 2015, issued by the seller’s licensee Epalex Corporation, a company of which Mr. Gomez is chairman and a major stockholder. This note was paid in full as of March 31, 2016.in November 2015. Accumulated amortization with respect to this intellectual property was $27,414$32,834 and $18,276$30,460 at September 30, 20172018 and December 31, 2016,2017, respectively.

 

On June 1, 2016, the Company entered into a ten-year License Agreement with Helidyne LLC to utilize the Helidyne intellectual property in the manufacturing of planetary rotor expanders and the incorporation of same in the Company’s distributed electric power generation systems. The license agreement also grants the Company an exclusive license to sell the expanders whether manufactured by Helidyne or by the Company. The Company’s royalty obligation begins on the earlier of the commercialization of the product or three years from the effective date of the agreement. Once the royalty obligation begins, the minimum annual royalty is $50,000 for the first six years, and $100,000 for the remainder of the agreement.

 

For the nine months ended September 30, 20172018 and 2016,2017, amortization expense was $16,638$9,874 and $12,460,$16,638, respectively, and accumulated amortization of the intangible assets of intellectual property and license agreement was $700,176$715,596 at September 30, 2017.2018.

 

Future amortization of the intangible assets of intellectual property and license agreement was as follows as of September 30, 2017:2018:

 

Year ending December 31:

Year ending December 31:   
2017  $5,546 
2018   12,374   $2,500 
2019   10,000    10,000 
2020   10,000    10,000 
Thereafter   54,178    54,178 
Total  $92,098   $76,678 

 

Note 6 – Stockholders’ Deficiency

 

Warrants

 

A summary of warrants issued, exercised and expired during the nine months ended September 30, 20172018 is as follows:

   Shares Weighted Average Exercise Price Intrinsic Value
Balance at December 31, 2016   4,275,000  $.33  $45,000 
Issued          
Expired   (100,000)  (3.00)   
Balance at September 30, 2017   4,175,000  $.27  $18,250 
  Shares Weighted Average Exercise Price Intrinsic Value
Balance at December 31, 2017  3,675,000  $.15  $45,000 
Issued         
Cancelled (replaced with Common Stock Options)  (2,300,000) $.15    
Balance at September 30, 2018  1,375,000  $.14  $ 

 

As of September 30, 2017, the options outstanding and exercisable had an intrinsic value of $18,250.

Note 7 – Stock Options

 

Stock option activity for the nine months ended September 30, 2017,2018, is summarized as follows:

 

   Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years)
Options outstanding at December 31, 2016   5,750,000  $0.31   5.12 
Grant          
Expired/forfeited          
Options outstanding at September 30, 2017   5,750,500  $0.31   4.37 
  Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years)
Options outstanding at December 31, 2017  5,750,500  $0.31   4.12 
Granted  3,130,000   0.12    
Warrants cancelled and replaced with Common Stock Options  2,300,000   0.12    
Cancelled for Repricing  (3,675,000)  0.16     
Reissued for Repricing  3,675,000   0.12     
Options outstanding at September 30, 2018  11,180,500  $0.20   7.02 

 

Total stock optionstock-based compensation for the nine months ended September 30, 2018 and 2017 was $480,649 and 2016 was $0, and $72,000, respectively. There is no unrecognized compensation expense associated with the options.

 


On May 30, 2018, the Board of Directors agreed to extend all outstanding management and non-employee stock options and warrants (covering 5,975,000 shares) to a common expiration date of June 30, 2026 and adjust the exercise prices to $0.12 (“adjusted terms”). The 2,300,000 warrants were cancelled and replaced with common stock options and the 3,675,000 options were terminated and reissued with the adjusted terms. These transactions were accounted for as modifications of the original instruments. The net effect of the change in the value of the repriced options and warrants was an incremental increase in stock-based compensation expense of $136,349.

The Company also issued new, immediately vesting, stock options with an exercise price of $0.12 and an expiration date of June 30, 2026, to Richard Davis for 1,300,000 shares; Hank Leibowitz for 500,000 shares; John Hofmann for 800,000 shares; Richard McKee for 500,000 shares and Michael McKee for 30,000 shares. The fair market value of these options was determined to be $0.11 per option, or $344,300, which was recognized as stock-based compensation expense of $344,300.

Note 8 - Notes Payable to Related Parties

 

Notes payable to related parties at September 30,December 31, 2017 consistconsisted of notes payable to stockholders of $200,000$150,000 (issued in 2012). The notes had been due in one principal payment on September 30, 2017, but are now due onwere extended to April 30, 2018, after extensions granted by the Note holders in the third quarter of 2017. Interest iswas payable semiannually at 10%. The notes arewere collateralized by all receivables now or hereafter existing pursuant to the license agreement with VDF FutureCeuticals, Inc. discussed in Notes 3 and 9. In April and July 2017, the Company made payments totaling $100,000 each month$250,000 toward the principal balance of the Notes.

The notes payable to related parties at December 31, 2016 also includes a promissory note to a stockholder for $25,000. The principal balance and interest at 10% was due March 30, 2016. This note waswere paid in full with accrued interest, in January 2017.2018.

 

Note 9 - Commitments and Contingencies

 

On June 25, 2015, Company consultant Hank Leibowitz assigned to the Company a patent he obtained for a system and method for using high temperature sources in Rankine cycle power systems. The Company has agreed to pay Mr. Leibowitz a 2% royalty for any and all revenues of products and/or project sales by the Company based on the subject patent.

 

The Company’s license agreement with VDF FutureCeuticals, Inc., which has generated substantially all of the Company’s revenues since 2012, will terminateterminated in March 2018, when the underlying patents expire.

expired.

 

On June 1, 2016, the Company entered into a ten-year License Agreement with Helidyne LLC to utilize the Helidyne intellectual property in order to use Helidyne expanders in Powerverde systems and to sell Helidyne expanders. As part of the licensing agreement the Company committed to purchase two 50 kW expanders, at a price of $25,000 each, on or before the sixth month anniversary of the agreement. The $50,000 was payable in two monthly installments of $25,000 beginning October 2016. As of September 30, 2017, theThe Company had made payments totaling $38,750, towards the purchase of the expanders, all of which was included in prepaid expense and other current assets in the consolidated balance sheets at December 31, 2016. Due to Helidyne’s failure to perform under the agreement, the Company has not made any further payments to Helidyne and does not intend to do so unless and until Helidyne performs as required. Helidyne has not objected to the Company’s position, and it is very unlikely that Helidyne will ever be able to perform. Consequently, asin the third quarter of September 30, 2017, the Company wrote off the $38,750 paid to Helidyne.

The Company agreed to pay Helidyne LLC a royalty of 3% of sales, subject to a minimum annual royalty of $50,000 beginning on the earlier of commercialization of the product or three years from the effective date of the agreement. This minimum royalty would be payable only if Helidyne performs as required, which is very unlikely, or if the Company elects to produce its own expanders using Helidyne technology. The Company does intend to produce these expanders directly or through a contract manufacturer in the future. See Note 5.

 

On April 15, 2017, the Company entered into a manufacturingan assembly agreement with Liberty Plugins, Inc. (“Liberty”) to manufacture and assemble Liberty’s Hydra electronic vehicle charging systems and ship completed Hydras to Liberty’s facility in Santa Barbara, California (the “Liberty Agreement”). Liberty has agreed to pay $1,000 for the first 10 Hydras assembled in a month, $750 per Hydra for the next 10 Hydras assembled per month and $500 per Hydra for each Hydra assembled above 20 per month. No invoices were issued to Liberty during the quarter ended June 30, 2017. As of September 30, 2017,2018, the Company has built and shipped 25 Hydras, and these products were invoiced throughout the third quarter48 Hydras. Revenue of 2017. The revenue$14,000 for these products is reflected in the net revenue on the Company’s condensed consolidated statementsstatement of operations for the quarternine months ended September 30, 2017.2018.

 

On September 30, 2017, the Company converted the outstanding accounts receivable from Liberty, totaling $25,000, into a Promissory Note with 12% interest and a maturity date of January 31, 2018. On December 31, 2017, the Company converted an additional $9,000 from accounts receivable from Liberty to the principal balance of the Promissory Note and extended the maturity date of the Note to April 30, 2018. On May 1, 2018, the Company converted an additional $3,000 from accounts receivable from Liberty to the principal balance of the Promissory Note and extended the maturity date of the Note to June 30, 2018. The note was paid in full in June 2018, along with accrued interest in the amount of $371.

 

Note 10 - Related Party Transactions

 

Since July 2010, the accounting firm J.L. Hofmann & Associates, P.A. (“JLHPA”), whose principal is the Company’sour CFO John L. Hofmann, has provided financial consulting and accounting services to the Company. In December 2017, J.L. Hofmann & Associates, P.A. merged with Kabat, Schertzer, De La Torre, Taraboulos & Co, LLC (“KSDT”). The Company paid $28,380 and $20,720 for KSDT’s and $28,815 to JLHPA for itsJLHPA’s services in the nine months ended September 30, 2018 and 2017, and 2016, respectively.respectively

 

Note 11 – Subsequent Events

 

In October 2017,The Company’s management evaluated subsequent events through November 9, 2018, in connection with the Company made payments totaling $50,000 towardpreparation of these condensed consolidated financial statements, which is the principal balance of the Notes payabledate these financial statements were available to related parties, discussed in Note 8, leaving a remaining principal balance of $150,000be issued. There are no subsequent events to report as of October 2017.this date.

 


10

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

 

Forward Looking Statements

 

Readers are cautioned that the statements in this Report that are not descriptions of historical facts may be forward-looking statements that are subject to risks and uncertainties. This Report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are based on the beliefs of our management, as well as on assumptions made by and information currently available to us as of the date of this Report. When used in this Report, the words “plan,” “will,” “may,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “project” and similar expressions are intended to identify such forward-looking statements. Although we believe these statements are reasonable, actual actions, operations and results could differ materially from those indicated by such forward-looking statements as a result of the risk factors included in our 2016 Annual Report, or other factors. We must caution, however, that this list of factors may not be exhaustive and that these or other factors, many of which are outside of our control, could have a material adverse effect on us and our ability to achieve our objectives. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above.

 

The following discussion and analysis should be read in conjunction with the financial statements and notes thereto appearing elsewhere herein.

 

Critical Accounting Policies

 

The condensed consolidated financial statements of PowerVerde, Inc. are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these condensed consolidated financial statements requires our management to make estimates and assumptions about future events that effect the amounts reported in the financial statements and related notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. We believe the following critical accounting policies affect its more significant judgments and estimates used in the preparation of financial statements

 

Accounting for Uncertainty in Income Taxes

 

The Company follows the provisions of ASC Topic 740-10, “Accounting for Uncertainty in Income Taxes” which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements, and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This topic also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

 

Based on our evaluation, we have concluded that there are no significant uncertain tax positions requiring recognition in our condensed consolidated financial statements. Our evaluation was performed for the tax years ended December 31, 2012, 2013, 2014, 2015 and 2015,2016, the tax years which remain subject to examination by major tax jurisdictions as of September 30, 2017.2018.

 

We may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. In the event we have received an assessment for interest and/or penalties, it has been classified in the condensed consolidated financial statements as general and administrative expense.

 

Revenue Recognition

 

Revenue from royaltyroyalties and assembly agreementsservices unrelated to the Company’s planned operations is recognized when the goods or services are transferred to the customer. Royalties are recognized as earned in accordance with the terms ofperiod the specific agreements.sales to which the royalties relate occur. Manufacturing assembly services are recognized as revenue when the assembled product is delivered to the customer. Revenues recognized under these agreements amount to 100% of total revenues for the nine months ended September 30, 20172018 and 2016. The Company does not expect any significant impact of the adoption of the standard on our financial statements based on the current sources of revenue.2017.

 

Common Stock Purchase Warrants

 

The Company accounts for common stock purchase warrants in accordance with ASC Topic 815- 40,815-40, Derivatives and Hedging – Contracts in Entity’s Own Equity (“ASC 815-40”). Based on the provisions of ASC 815- 40,815-40, the Company classifies as equity any contracts that (i) require physical settlement or netsharenet-share settlement, or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company,Company), or (ii) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). All outstanding warrants as of September 30, 20172018 and 20162017 were classified as equity.

 


Intellectual Property

 

The Company reviews intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company uses an estimate of the undiscounted cash flows over the remaining life of its long-lived assets, or related group of assets where applicable, in measuring whether the assets to be held and used will be realizable. In the event of impairment, the Company would discount the future cash flows using its then estimated incremental borrowing rate to estimate the amount of the impairment.

 

Stock-based compensation.

 

We account for stock-based compensation based on ASC Topic 718-Stock Compensation which requires expensing of stock options and other share-based payments based on the fair value of each stock option awarded. The fair value of each stock option is estimated on the date of grant using the Black-Scholes valuation model. This model requires management to estimate the expected volatility, expected dividends, and expected term as inputs to the valuation model.

 

Overview

 

From January 1991 until October 2005, the Company devoted substantially all of its efforts and resources to research and development related to its unsuccessful Biotech Business, in particular the study of biological oxidation and antioxidation directed to the development of potential therapeutic products for the treatment of various diseases and conditions. In the most recent years, the Company’s research focused mainly on targeted antioxidant therapeutics and nutraceuticals. The Company, has generated only limited revenue from product sales and has relied primarily on equity financing, licensing revenues, and various debt instruments for its working capital. The Company has been unprofitable since its inception.

 

Following the cessation of material Biotech Business operations in October 2005, the Company turned its primary focus to seeking an appropriate merger partner for its public shell. This resulted in the February 2008 Merger with Vyrex. In March 2009, we assigned most of our Biotech intellectual property other than our rights under existing licensing agreements (the “Biotech IP”) to an investor in exchange for his agreement to pay all future expenses relating to the Biotech IP and to pay us 20% of any net proceeds received from future sale and/or licensing of the Biotech IP. We do not expect this arrangement to generate material revenues.

 

Since the Merger, we have focused on the development, testing and commercialization of our electric power systems, in particular, their applicability to thermal and natural gas pipeline operations. Our business is subject to significant risks, including the risks inherent in our research and development efforts, uncertainties associated with obtaining and enforcing patents and intense competition. See “Risk Factors.”Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 17, 2018.

 

Except as specifically noted to the contrary, the following discussion relates only to PowerVerde since, as a result of the Merger, the only historical financial statements presented for the Company in periods following the Merger are those of the operating entity, PowerVerde.

 


Results of Operations

 

Three Months Ended September 30, 20172018 as Compared to Three Months Ended September 30, 20162017

 

Since inception, we have focused on the development, testing and commercialization of our clean energy electric power generation systems. We had no revenues from sales in the third quarter of 20172018 and 20162017 – but we recorded $108,686$0 and $89,118$108,686 in Biotech IP licensing fees (based on pre-Merger contracts), respectively. Also, we generated $25,000$8,000 in revenue for assembly revenues under the Liberty Agreement in the third quarter of 2018 and $25,000 in the third quarter of 2017. In both years, we had substantial expenses due to our ongoing research and development activities and efforts to commercialize our systems, as well as substantial administrative expenses associated with our status as a public company. Our research and development expenses decreased by $99,514$6,956 in the third quarter of 20172018 as compared to the third quarter of 2016,2017, primarily because of the decrease in stock option compensation for services.decreased engineering and manufacturing expenses. Our general and administrative expenses decreasedincreased by $9,850$1,876 in the third quarter of 20172018 as compared to 2016,2017, primarily because of the reduction in employee salaries.increased accounting and legal fees. Our net loss was $110,926 in the third quarter of 2018, as opposed to net income wasof $4,090 in the third quarter of 2017. This loss was due primarily to the expiration of our Biotech IP revenues in March 2018 and the issuance of stock options in the second quarter of 2018. Substantial net losses are expected until we are able to successfully commercialize and market our systems, as to which there can be no assurance.Any taxes that might result from net income for financial reporting purposes would be eliminated through use of a portion of the Company’s net operating loss carryforward.

Nine Months Ended September 30, 2018 as Compared to Nine Months Ended September 30, 2017

Since inception, we have focused on the development, testing and commercialization of our clean energy electric power generation systems. We had no revenues from sales in the first nine months of 2018 and 2017 – but we recorded $159,094 and $448,485 in Biotech IP licensing fees (based on pre-Merger contracts), respectively. Also, we generated $14,000 and $25,000 in assembly revenues under the Liberty Agreement in the first nine months of 2018 and 2017, respectively. In both years, we had substantial expenses due to our ongoing research and development activities and efforts to commercialize our systems, as well as substantial administrative expenses associated with our status as a public company. Our research and development expenses increased by $423,368 (245.1%) in the first nine months of 2018 as compared to 2017. This increase is primarily due to the stock options issued in the second quarter of 2018. Our general and administrative expenses increased by $21,299 (13.3%) in the first nine months of 2018 as compared to 2017, due mainly to the increase in accounting and legal fees in 2018. Our net loss was $603,944 in the first nine months of 2018, a reversal of the net lossincome of $161,590$116,516 in the third quarter of 2016.2017. This loss was due primarily to the expiration of our Biotech IP revenues in March 2018 and the issuance of stock options in the second quarter of 2018. Substantial net losses will continue until we are able to successfully commercialize and market our systems, as to which there can be no assurance.Any taxes that might result from net income for financial reporting purposes would be eliminated through use of a portion of the Company’s net operating loss carryforward.

 

Nine Months Ended September 30, 2017 as Compared to Nine Months Ended September 30, 2016

Since inception, we have focused on the development, testing and commercialization of our clean energy electric power generation systems. We had no revenues from sales in the first nine months of 2017 and 2016 – but we recorded $448,484 and $417,074 in Biotech IP licensing fees (based on pre-Merger contracts), respectively. In the 2017 period, we generated $25,000 in assembly revenues under the Liberty Agreement in the third quarter of 2017. In both years, we had substantial expenses due to our ongoing research and development activities and efforts to commercialize our systems, as well as substantial administrative expenses associated with our status as a public company. Our research and development expenses decreased by $109,579 (38.8%) in the first nine months of 2017 as compared to 2016. This decrease is due mainly to the stock options issued in July 2016. Our general and administrative expenses decreased by $102,066 (38.9%) in the first nine months of 2017 as compared to 2016, due mainly to the warrants issued in 2016. Our net income was $116,516 in the first nine months of 2017, a reversal of the net loss of $173,761 in the third quarter of 2016. Substantial net losses will continue until we are able to successfully commercialize and market our systems, as to which there can be no assurance.

Liquidity and Capital Resources

 

We have financed our operations since inception principally through the sale of debt and equity securities and throughsecurities. Also, since 2012 we have received material amounts of Biotech IP licensing revenues.fees. As of September 30, 2017,2018, we had a working capital deficit of $128,270$62,168 compared to a working capital deficit of $272,120$168,679 at December 31, 2016. This improvement2017. Our decrease in working capital position is due primarily to reductionsthe expiration of Biotech IP revenue in notesMarch 2018.

Due to our substantially increased Biotech IP revenues in 2017, we were able in January 2018 to pay in full the $150,000 balance of our Notes payable to related parties accounts payable and accrued expenses resulting from positive operating cash flows during this period.

We expect 2017 Biotech IP revenues to approximate the 2016 levels;begin 2018 with substantial working capital; however, there can be no assurance that this revenue level will be achieved. Further, our contract which provides our Biotech IP revenues expireslicense agreement expired in March 2018 anddue to the expiration of our underlying patents. Consequently, we will therefore be without ahave no further material source of working capital at that time unless we can generate material revenues from operations and/or the Liberty Agreement or raise substantial additional capital, as to which there can be no assurance. See Note 9- Commitments and Contingencies

In order to meetcash other than our obligations under the $150,000 balance (as of October 2017) of our secured notes payable to related parties due April 30, 2018 (the “Notes”), which are collateralized by ourfinal Biotech IP receivables,royalty payment for the first quarter of 2018, which we intend to apply most of the Biotech IP revenues received in 2017 andApril 2018 toward paymentin the amount of the interest and principal due on the Notes, after reserving the minimum amount necessary to maintain our operations.$159,094. We intend to reduce our salary and consulting fee expenses until the Notes are paid in full, and we are also commencingseeking a new source of revenue by using our employee to provide part-time skilled manufacturing services to a third party pursuantparty; however, we expect this arrangement to the Liberty Agreement.generate no more than$2,000 per month.

 

We continue to seek funding from private debtequity and equitydebt investors, as we need to promptly raise substantial additional capital in order to finance our plan of operations.operations and commercialize our systems. There can be no assurance that we will be able to promptly raise the necessary funds on commercially acceptable terms if at all.funds. If we do not promptly raise the necessary funds, we may be forced to cease operations.


Item 3. Quantitative and Qualitative Disclosures about Market Risk.

 

Not applicable.

 

Item 4. Controls and Procedures.

 

Disclosure Controls and Procedures

 

The Company, under the supervision and with the participation of its management, including the Chief Executive Officer and President, evaluated the effectiveness of the design and operation of the Company’s “disclosure controls and procedures” (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective.

 

Management’s Annual Report on Internal Control Over Financial Reporting

 

Management of the Company is responsible for establishing and maintaining adequate control over financial reporting. Our internal control system was designed to provide reasonable assurance to our management and Board of Directors regarding the preparation and fair presentation of financial statements.

 

All internal controls over financial reporting, no matter how well designed, have inherent limitations, including the possibility of human error and the circumvention of overriding of controls. Therefore, even effective internal control over financial reporting can provide only reasonable, and not absolute, assurance with respect to financial statement preparation and presentation. Further, because of changes in conditions, the effectiveness of internal controls over financial reporting may vary over time. Because of its inherent limitations, internal controls over financial reporting may also fail to prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.

 

Our Chief Executive Officer and Chief Financial Officer assessed the effectiveness of our internal control over financial reporting as of December 31, 2016.2017. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control—An Integrated Framework. Based on this evaluation, our management concluded that, as of September 30, 2017,2018, our internal control over financial reporting was effective.

 

No Attestation Report

 

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

 

Changes in Internal Control Over Financial Reporting

 

There were no significant changes in internal control over financial reporting during the third quarter of 20172018 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.reporting

 


PART II OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

None.

 

Item 1A. Risk Factors.

 

There are no material changes to the risk factors set forth in Part I, Item 1A, “Risk Factors,” of the 20162017 Annual Report. Please refer to that section for disclosure regarding the risks and uncertainties related to our business.

 

Item 2. Unregistered Sales 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.


Item 6. Exhibits.

 

(a)Exhibits

31.1
31.1Certification of Principal Executive Officer and Principal Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
  
31.2Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
  
32.1Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
  
32.2Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
  
101.INSXBRL INSTANCE DOCUMENT
  
101.SCHXBRL TAXONOMY EXTENSION SCHEMA
  
101.CALXBRL TAXONOMY EXTENSION CALCULATION LINKBASE
  
101.DEFXBRL TAXONOMY EXTENSION DEFINITION LINKBASE
  
101.LABXBRL TAXONOMY EXTENSION LABEL LINKBASE
  
101.PREXBRL TAXONOMY EXTENSION PRESENTATION LINKBASE



SIGNATURES

 

In accordance with Section 13(a) or 15(d) of the Exchange Act, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Dated: November 9, 2018POWERVERDE, INC.
  
Dated: November 14, 2017By:/s/ Richard H. Davis
  Richard H. Davis
  Chief Executive Officer
   
Dated: November 14, 20179, 2018By:/s/ John L. Hofmann
  John L. Hofmann
  Chief Financial Officer

 


Exhibit Index

 

Exhibit
No.
 Description    
31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
31.2Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
32.1Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
32.2Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002  
 
101.INSXBRL INSTANCE DOCUMENT
   
101.SCH XBRL TAXONOMY EXTENSION SCHEMA
   
101.CAL XBRL TAXONOMY EXTENSION CALCULATION LINKBASE
   
101.DEF XBRL TAXONOMY EXTENSION DEFINITION LINKBASE
   
101.LAB XBRL TAXONOMY EXTENSION LABEL LINKBASE
   
101.PRE XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE    

 

1618