Renewable Energy and Power (RBNW) 10-Q 20 May 15 2015 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Mar. 31, 2015	20-May-15
Document And Entity Information
Entity Registrant Name	Renewable Energy & Power, Inc.
Entity Central Index Key	1608430
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-21
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		74,521,720
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2015

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Mar. 31, 2015	Sep. 30, 2014
Current Assets:
Cash	$77	$447
Accounts receivable from MDI (Notes 4)	1,175,900	930,900
Inventories	250,000	337,296
Total current assets	1,425,977	1,268,643
Property and equipment, net of accumulated depreciation of $110,522 and $85,971	339,978	364,529
Intangibles, net of accumulated amortization of $128,361 and $104,235	163,649	187,775
Other assets	5,000	5,000
Total Assets	1,934,604	1,825,947
Current Liabilities:
Accounts payable to MDI (Notes 4)	1,183,823	1,018,831
Accounts payable	2,941	44,800
Accrued interest payable to MDI (Notes 4)	48,333	38,333
Payable to shareholder	25,000	25,000
Consulting fees payable to officers	156,506	129,506
Total current liabilities	1,416,603	1,256,470
Convertible note payable to MDI (Note 4)	250,000	250,000
Total liabilities	1,666,603	1,506,470
Commitments and Contingencies (Note 4)
Shareholders' Equity:
Common stock, 200,000,000 shares authorized, par value $.001 per share, 74,521,720 shares issued and outstanding	74,522	74,522
Additional paid-in capital	798,530	798,530
Accumulated deficit	-605,051	-553,575
Total shareholders' equity	268,001	319,477
Total liabilities and stockholders' equity	$1,934,604	$1,825,947

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Sep. 30, 2014
Shareholders' Equity:
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	74,521,720	74,521,720
Common stock, shares outstanding	74,521,720	74,521,720

Condensed_Statements_of_Operat

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Condensed Statements Of Operations
Revenues (Notes 4)	$120,000	$112,500	$245,000	$242,452
Cost of revenues	86,400	90,235	176,630	194,445
Gross profit	33,600	22,265	68,370	48,007
Operating expenses:
General and administrative	12,570	14,876	26,169	45,708
Amortization	11,625	12,501	24,126	25,002
Depreciation	13,601	10,950	24,551	21,900
Consultants	17,000	11,000	35,000	54,002
Total Operating Expanses	54,796	49,327	109,846	146,612
Loss from operations	-21,196	-27,062	-41,476	-98,605
Interest expense	-5,000	-5,000	-10,000	-10,000
Loss before federal income taxes	-26,196	-32,062	-51,476	-108,605
Federal income taxes
Net loss	($26,196)	($32,062)	($51,476)	($108,605)
Loss per share, basic and dilutive	$0	$0	$0	$0
Weighted average shares outstanding	74,521,720	74,521,720	74,521,720	60,021,900

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	($51,476)	($108,605)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	48,677	46,902
Changes in operating assets and liabilities:
Accounts receivable from MDI	-245,000	-242,452
Inventories	87,296	-44,582
Accounts payable to MDI	164,992	269,168
Account payable to others	-41,859	20,000
Accrued interest payable to MDI	10,000	10,000
Consulting fees payable to officers	27,000	49,500
Net cash used in operating activities	-370	-69
Cash flows from investing activities
Cash flows from financing activities:
Net decrease in cash	-370	-69
Cash at beginning of period	447	533
Cash at end of period	77	464
Interest paid
Taxes paid

Nature_of_Business

Nature of Business	6 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 1 - Nature of Business	Renewable Energy and Power (the Company or REAP) was incorporated on October 15, 2012, under the laws of the State of Nevada, for the purpose of conducting all legal business.
	The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), as amended for interim financial information
	These financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s 2014 Annual Report on Form 10-K. The accompanying unaudited financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results for any subsequent quarter or the entire year ending September 30, 2015.
	Certain information or foot note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The interim results for the three and six months ended March 31, 2015 are not necessarily indicative of results for the full fiscal year.
	The Company is engaged in the business of new and retrofit applications for LED lighting and innovative solar electrical generation. The LED products will lower the use of electrical power, lower maintenance costs for users and extend the useful life of lighting fixtures.
	The solar process will greatly increase the conversion of heat to electricity, and is patterned after technology that has been used in space exploration for many years.
	Management knows of no material adjustments needed in these financial statements to conform to Generally Accepted Accounting Principles.

Going_Concern

Going Concern	6 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 2 - Going Concern	These financial statements for the three and six months ending March 31, 2015 were prepared assuming the Company will continue as a going concern. During the three months ending March 31, 2015, the Company has incurred a loss of $26,196 and has an accumulated deficit of $605,051. The Company will need to generate significant revenue in order to achieve profitability and may never become profitable.
	The Company has begun principal operations and, as is common with a start-up company, the Company has had recurring losses during its early stage. The Company’s financial statements are prepared using generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company does not have significant cash or other material assets, nor does it have an established source of revenue sufficient to cover its operating costs and to allow it to continue as a going concern. In the interim, shareholders of the Company have committed to meeting its minimal operating expenses.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	6 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 3 - Summary of Significant Accounting Policies	Basis of presentation
	The Company reports revenues and expenses using the accrual method of accounting for financial and tax reporting purposes. These financial statements are presented in United States dollars and have been prepared in accordance with United States generally accepted accounting principles.
	Management estimates
	The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.
	Revenue recognition
	The Company recognizes revenue from sales at the time the products are shipped, the price is determinable, the customers are invoiced and payment is reasonably assured. Invoices are due on a net 30 day basis. Shipping and handling costs are billed to customers and netted against shipping and handling expenses incurred by the Company, which are included in cost of revenues. All of the Company’s sales are to Multichip Display, Inc. (MDI), a shareholder of the Company. See Note 4.
	Accounts receivable
	The Company grants credit, generally without collateral. The Company performs periodic credit evaluations of its customers’ financial condition and believes that its customer acceptance, billing and collection policies are adequate to minimize potential credit risk. The Company has not incurred any credit losses to date. The Company provides an allowance for doubtful accounts that is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. The allowance for bad debt is $0 at December 31, 2014 and $0 at March 31, 2015. Normal accounts receivable past due more than 30 days are considered delinquent. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. All of the Company’s receivables are from MDI, a related party. (See Note 4.)
	Inventories
	Inventories are carried at the lower of cost (first-in, first-out, FIFO) or market (net realizable value) and include primarily Silicon wafers and displays with drivers. The inventories, which were purchased from two related parties during 2013 and 2014, consist of parts and supplies. (See Note 4.)

Related_Party_Transactions_wit

Related Party Transactions with Multichip Display, Inc. (MDI)	6 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 4 - Related Party Transactions with Multichip Display, Inc. (MDI)	MDI is owned by a minority shareholder (2,000,000 shares or 2.7%) of the Company as of December 31, 2014 and March 31, 2015. In addition, MDI became a minority shareholder (4,330,000 shares or 5.7%) through debt conversion (see below). The total direct and indirect ownership of REAP by MDI is 8.6% at December 31, 2014 and March 31, 2015.
	The Company has an exclusive contract to manufacture products under contract from MDI. MDI will be the sales agent for certain government and private company contracts; REAP manufactures products based on bid prices as agreed between the parties. The Company has also agreed to purchase parts from MDI. As part of the agreement, MDI has agreed to support the operations of the Company through December 31, 2015. MDI is both a significant customer and significant vendor of the Company. For the three months ending March 31, 2014 and 2015, all of the Company’s sales resulted from transactions with MDI. The Company had the following related party transactions through March 31, 2015 for the time periods shown in the tables below.
		For the Three Months Ending
		March 31,
	Income & Expense Transactions	2015		2014
	Sales to MDI	$	120,000	$	112,500
	Inventory purchases from MDI*		86,400		90,235
	Rent expense paid to MDI		7,500		7,500
	Interest expense		5,000		5,000
	Balance Sheet Accounts as of :	March 31,		September 30,
		2015		2014
	Receivable from MDI	$	1,175,900	$	930,900
	Accounts payable to MDI		1,183,823		1,018,831
	Accrued interest payable to MDI		48,333		38,333
	Convertible note payable to MDI		250,000		250,000
	* Includes borrowings to pay for direct labor.
	The agreement with MDI includes an offset clause for accounts receivable from MDI and accounts payable to MDI. Neither party has requested to offset the balance.

Related_Party_Transactions_wit1

Related Party Transactions with Initial Shareholder Group	6 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 5 - Related Party Transactions with Initial Shareholder Group	Consulting fees payable to officers and shareholder
	During the six months ended March 31, 2015 and 2014, the Company incurred $35,000 and $54,002, respectively, of consulting fees which are payable to two officers and to one shareholder of the Company. Total consulting fees payable to these officers and shareholder as of March 31, 2015 and September 30, 2014 were $156,506 and $129,506 respectively.

Share_Capital

Share Capital	6 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 6 - Share Capital	We are authorized to issue 200,000,000 shares of common stock and no preferred stock. Upon formation, 42,010,000 shares were issued to the founders of the Company in exchange for rights to an extensive design of a solar generating process and a prototype of a final product. On October 31, 2012, 2,000,000 shares were issued for $10,000. In February 2013, 4,330,000 shares were issued in a debt conversion for the equipment of MDI Industries, Inc. In March 2013, 25,000,000 shares were issued in a debt conversion. In June 2013, 1,181,720 restricted common shares were issued for unpaid wages. Major shareholders of the Company have donated $4,370 to capital and received no additional shares.

Income_Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 7 - Income Taxes	The difference between the expected income tax expense (benefit) and the actual tax expense (benefit) computed by using the Federal statutory rate of 34% is as follows:
		For the Six Months Ended
		March 31,
		2015			2014
	Expected income tax benefit at statutory rate of 34%	$	17,500		$	36,900
	Change in valuation allowance		(17,500	)		(36,900	)
	Income tax expense (benefit)	$	0		$	0
	Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset, are as follows:
	Deferred tax assets:	March 31,			September 30,
		2015			2014
	Tax benefit of net operating loss carry-forward	$	178,600		$	166,000
	Book and tax difference for amortization of intangibles		27,100			22,200
	Less: valuation allowance		(205,700	)		(188,200	)
	Net deferred tax asset	$	0		$	0
	The Company had a federal net operating tax loss carry-forward of approximately $525,000 as of March 31, 2015. The tax loss carry-forwards are available to offset future taxable income with the federal carry-forwards beginning to expire in 2033.
	At March 31, 2015 the deferred tax valuation allowance increased by $17,500 from September 30, 2014. The realization of the tax benefits is subject to the sufficiency of taxable income in future years. The deferred tax assets represent the amounts expected to be realized before expiration. The Company periodically assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible profits. As of March 31, 2015 and September 30, 2014, the Company established valuation allowances equal to the full amount of the net deferred tax assets due to the uncertainty of the utilization of the operating losses in future periods.
	During the six months ended March 31, 2015 and 2014, no amounts have been recognized for uncertain tax positions and no amounts have been recognized related to interest or penalties related to uncertain tax positions. The Company has determined that it is not reasonably likely for the amounts of unrecognized tax benefits to significantly increase or decrease within the next twelve months. The Company is currently subject to a three year statute of limitations by major tax jurisdictions.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2015
Summary Of Significant Accounting Policies Policies
Basis of presentation	The Company reports revenues and expenses using the accrual method of accounting for financial and tax reporting purposes. These financial statements are presented in United States dollars and have been prepared in accordance with United States generally accepted accounting principles.
Management estimates	The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue recognition	The Company recognizes revenue from sales at the time the products are shipped, the price is determinable, the customers are invoiced and payment is reasonably assured. Invoices are due on a net 30 day basis. Shipping and handling costs are billed to customers and netted against shipping and handling expenses incurred by the Company, which are included in cost of revenues. All of the Company’s sales are to Multichip Display, Inc. (MDI), a shareholder of the Company. See Note 4.
Accounts receivable	The Company grants credit, generally without collateral. The Company performs periodic credit evaluations of its customers’ financial condition and believes that its customer acceptance, billing and collection policies are adequate to minimize potential credit risk. The Company has not incurred any credit losses to date. The Company provides an allowance for doubtful accounts that is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. The allowance for bad debt is $0 at December 31, 2014 and $0 at March 31, 2015. Normal accounts receivable past due more than 30 days are considered delinquent. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. All of the Company’s receivables are from MDI, a related party. (See Note 4.)
Inventories	Inventories are carried at the lower of cost (first-in, first-out, FIFO) or market (net realizable value) and include primarily Silicon wafers and displays with drivers. The inventories, which were purchased from two related parties during 2013 and 2014, consist of parts and supplies. (See Note 4.)

Related_Party_Transactions_wit2

Related Party Transactions with Multichip Display, Inc. (MDI) (Tables)	6 Months Ended
	Mar. 31, 2015
Related Party Transactions With Multichip Display Inc. Mdi Tables
Summary of sales and accounts receivable MDI		For the Three Months Ending
		March 31,
	Income & Expense Transactions	2015		2014
	Sales to MDI	$	120,000	$	112,500
	Inventory purchases from MDI*		86,400		90,235
	Rent expense paid to MDI		7,500		7,500
	Interest expense		5,000		5,000
Future lease commitments	Balance Sheet Accounts as of :	March 31,		September 30,
		2015		2014
	Receivable from MDI	$	1,175,900	$	930,900
	Accounts payable to MDI		1,183,823		1,018,831
	Accrued interest payable to MDI		48,333		38,333
	Convertible note payable to MDI		250,000		250,000

Income_Taxes_Tables

Income Taxes (Tables)	6 Months Ended
	Mar. 31, 2015
Income Taxes Tables
Summary of expected income tax expense (benefit) and the actual tax expense (benefit)	The difference between the expected income tax expense (benefit) and the actual tax expense (benefit) computed by using the Federal statutory rate of 34% is as follows:
		For the Six Months Ended
		March 31,
		2015			2014
	Expected income tax benefit at statutory rate of 34%	$	17,500		$	36,900
	Change in valuation allowance		(17,500	)		(36,900	)
	Income tax expense (benefit)	$	0		$	0
Summary of Deferred tax assets and liabilities	Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset, are as follows:
	Deferred tax assets:	March 31,			September 30,
		2015			2014
	Tax benefit of net operating loss carry-forward	$	178,600		$	166,000
	Book and tax difference for amortization of intangibles		27,100			22,200
	Less: valuation allowance		(205,700	)		(188,200	)
	Net deferred tax asset	$	0		$	0

Going_Concern_Details_Narrativ

Going Concern (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2014
Going Concern Details Narrative
Net loss	$26,196	$32,062	$51,476	$108,605
Accumulated deficit	$605,051		$605,051		$553,575

Related_Party_Transactions_wit3

Related Party Transactions with Multichip Display, Inc. (MDI) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014		Sep. 30, 2014
Sales [Member]
Sales resulted from Transactions with MDI, Amount	$120,000		$112,500
Inventory purchases [Member]
Sales resulted from Transactions with MDI, Amount	86,400	[1]	90,235	[1]
Rent expense [Member]
Sales resulted from Transactions with MDI, Amount	7,500		7,500
Interest expense [Member]
Sales resulted from Transactions with MDI, Amount	5,000		5,000
Receivable [Member]
Related Party Transactions with MDI, Amount	1,175,900				930,900
Accounts Payable [Member]
Related Party Transactions with MDI, Amount	1,183,823				1,018,831
Accrued interest payable [Member]
Related Party Transactions with MDI, Amount	48,333				38,333
Convertible note payable [Member]
Related Party Transactions with MDI, Amount	$250,000				$250,000
[1]	Includes borrowings to pay for direct labor.

Related_Party_Transactions_wit4

Related Party Transactions with Multichip Display, Inc. (MDI) (Details Narrative)	Mar. 31, 2015	Dec. 31, 2014
Related Party Transactions With Multichip Display Inc. Mdi Details Narrative
Owned by a minority shareholder	2,000,000	2,000,000
Shares of the company	2.70%	2.70%
The total direct and indirect ownership of REAP	8.60%	8.60%

Related_Party_Transactions_wit5

Related Party Transactions with Initial Shareholder Group (Details Narrative) (USD $)	6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2014
Consulting fees	$156,506		$129,506
Officers And Shareholder [Member]
Consulting fees payable to officers and shareholder	$35,000	$54,002

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Income Taxes Details
Expected income tax benefit at statutory rate of 34%			$17,500	$36,900
Change in valuation allowance			-17,500	-36,900
Income tax expense (benefit)

Income_Taxes_Details_1

Income Taxes (Details 1) (USD $)	Mar. 31, 2015	Dec. 31, 2013
Deferred tax assets:
Tax benefit of net operating loss carry-forward	$178,600	$166,000
Book and tax difference for amortization of intangibles	27,100	22,200
Less: valuation allowance	-205,700	-188,200
Net deferred tax asset	$0	$0

Income_Taxes_Details_Narrative

Income Taxes (Details Narrative) (USD $)	6 Months Ended
	Mar. 31, 2015
Income Taxes Details Narrative
Federal net operating tax loss carry-forward	$525,000
Net operating loss carryforwards, expiration date	2033