Renewable Energy and Power (RBNW) 10-Q 19 Aug 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Aug. 19, 2015
Document And Entity Information
Entity Registrant Name	Renewable Energy & Power, Inc.
Entity Central Index Key	1,608,430
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--09-30
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	Q3
Document Fiscal Year Focus	2,015

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Current Assets:
Cash	$ 8	$ 462
Accounts receivable from MDI (Notes 4)	1,294,444	930,900
Inventories	250,545	337,296
Total current assets	1,544,997	1,268,658
Property and equipment, net of accumulated depreciation of $124,124 and $85,971	326,376	364,529
Intangibles, net of accumulated amortization of $139,986 and $104,235	152,024	187,775
Other assets (security deposit)	5,000	5,000
Total Assets	2,028,397	1,825,962
Current Liabilities:
Accounts payable to MDI (Notes 4)	1,281,092	1,018,831
Accounts payable to others	24,797	44,800
Accrued interest payable to MDI (Notes 4)	53,333	38,333
Payable to shareholder	25,000	25,000
Consulting fees payable to officers	168,506	129,506
Total current liabilities	1,552,728	1,256,470
Convertible note payable to MDI (Note 4)	250,000	250,000
Total liabilities	1,802,728	1,506,470
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	(647,383)	(553,560)
Total shareholders' equity	225,669	319,492
Total liabilities and stockholders' equity	$ 2,028,397	$ 1,825,962

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Condensed Balance Sheets Parenthetical
Property and equipment, net of accumulated depreciation	$ 124,124	$ 85,971
Intangibles, net of accumulated amortization	$ 139,986	$ 104,235
Shareholders' Equity:
Common stock, par value	$ .001	$ .001
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 Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Statements Of Operations
Revenues (Notes 4)	$ 118,509	$ 183,159	$ 363,509	$ 425,611
Cost of revenues	95,243	147,641	273,435	342,086
Gross profit	23,266	35,518	90,074	83,525
Operating expenses:
General and administrative	13,929	12,424	40,143	58,132
Amortization	11,625	12,501	35,751	37,503
Depreciation	13,602	10,950	38,153	32,850
Consultants	18,850	43,752	54,850	97,754
Total Operating Expanses	58,006	79,627	168,897	226,239
Loss from operations	(34,740)	(44,109)	(78,823)	(142,714)
Interest expense	(5,000)	(5,000)	(15,000)	(15,000)
Loss before federal income taxes	$ (39,740)	$ (49,109)	$ (93,823)	$ (157,714)
Federal income taxes
Net loss	$ (39,740)	$ (49,109)	$ (93,823)	$ (157,714)
Loss per share, basic and dilutive	$ 0	$ 0	$ 0	$ 0
Weighted average shares outstanding	74,521,720	74,521,720	74,521,720	74,521,720

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (93,823)	$ (157,714)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	73,904	70,353
Changes in operating assets and liabilities:
Accounts receivable from MDI	(363,544)	(425,611)
Inventories	86,751	(13,138)
Accounts payable to MDI	262,261	491,032
Account payable to others	(20,003)	20,000
Accrued interest payable to MDI	15,000	$ 15,000
Consulting fees payable to officers	39,000
Net cash used in operating activities	$ (454)	$ (78)
Cash flows from investing activities
Cash flows from financing activities:
Net decrease in cash	$ (454)	$ (78)
Cash at beginning of period	462	80
Cash at end of period	$ 8	$ 2
Supplemental Cash Flow Disclosures
Interest paid
Taxes paid

Nature of Business

Nature of Business	9 Months Ended
	Jun. 30, 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 nine months ended June 30, 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	9 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Note 2 - Going Concern	These financial statements for the three and nine months ended June 30, 2015 were prepared assuming the Company will continue as a going concern. During the three months ended June 30, 2015, the Company has incurred a loss of $39,740 and has an accumulated deficit of $647,383. 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 Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Jun. 30, 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 as of June 30, 2015 September 30, 2014. 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 were purchased from two related parties during 2013 and 2014 and consisted of parts and supplies. See Note 4.

Related Party Transactions with

Related Party Transactions with Multichip Display, Inc. (MDI)	9 Months Ended
	Jun. 30, 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 June 30, 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% as of September 30, 2014 and June 30, 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 ended June 30, 2015 and 2014, all of the Company's sales resulted from transactions with MDI. The Company had the following related party transactions through June 30, 2015 for the time periods shown in the tables below. For the Three Months Ended June 30, Income & Expense Transactions: 2015 2014 Sales to MDI $ 118,509 $ 183,159 Inventory purchases from MDI* 84,769 174,984 Rent expense paid to MDI 7,500 7,500 Interest expense 5,000 5,000 Balance Sheet Accounts as of: June 30, 2015 September 30, 2014 Receivable from MDI $ 1,294,444 $ 930,900 Accounts payable to MDI 1,281,092 1,018,831 Accrued interest payable to MDI 53,333 38,333 Convertible note payable to MDI 250,000 250,000 _________ * Includes purchases of some 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 wi10

Related Party Transactions with Initial Shareholder Group	9 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Note 5 - Related Party Transactions with Initial Shareholder Group	Consulting fees payable to officers and shareholder During the three months ended June 30, 2015 and 2014, the Company incurred $18,850 and $43,752, respectively, of consulting fees which are payable to two officers and to one shareholder of the Company. Consulting fees payable to these officers and shareholder as of June 30, 2015 and December 31, 2014 were $168,506 and $129,506 respectively.

Share Capital

Share Capital	9 Months Ended
	Jun. 30, 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	9 Months Ended
	Jun. 30, 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 Nine Months Ended June 30, 2015 2014 Expected income tax benefit at statutory rate of 34% $ 31,800 $ 53,623 Change in valuation allowance (31,800 ) (53,623 ) Income tax expense (benefit) $ - $ - 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: June 30, 2015 September 30, 2014 Tax benefit of net operating loss carry-forward $ 191,000 $ 166,000 Book and tax difference for amortization of intangibles 29,000 22,200 Less: valuation allowance 220,000 ) (188,200 ) Net deferred tax asset $ - $ - The Company had a federal net operating tax loss carry-forward of approximately $561,000 as of June 30, 2015. The tax loss carry-forwards are available to offset future taxable income with the federal carry-forwards beginning to expire in 2033. At June 30, 2015 the deferred tax valuation allowance increased by $31,800 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 June 30, 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 nine months ended June 30, 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 Accoun13

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 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 as of June 30, 2015 September 30, 2014. 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 were purchased from two related parties during 2013 and 2014 and consisted of parts and supplies. See Note 4.

Related Party Transactions wi14

Related Party Transactions with Multichip Display, Inc. (MDI) (Tables)	9 Months Ended
	Jun. 30, 2015
Related Party Transactions With Multichip Display Inc. Mdi Tables
Schedule of Related Party Transactions	The Company had the following related party transactions through June 30, 2015 for the time periods shown in the tables below. For the Three Months Ended June 30, Income & Expense Transactions: 2015 2014 Sales to MDI $ 118,509 $ 183,159 Inventory purchases from MDI* 84,769 174,984 Rent expense paid to MDI 7,500 7,500 Interest expense 5,000 5,000 Balance Sheet Accounts as of: June 30, 2015 September 30, 2014 Receivable from MDI $ 1,294,444 $ 930,900 Accounts payable to MDI 1,281,092 1,018,831 Accrued interest payable to MDI 53,333 38,333 Convertible note payable to MDI 250,000 250,000

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Jun. 30, 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 Nine Months Ended June 30, 2015 2014 Expected income tax benefit at statutory rate of 34% $ 31,800 $ 53,623 Change in valuation allowance (31,800 ) (53,623 ) Income tax expense (benefit) $ - $ -
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: June 30, 2015 September 30, 2014 Tax benefit of net operating loss carry-forward $ 191,000 $ 166,000 Book and tax difference for amortization of intangibles 29,000 22,200 Less: valuation allowance 220,000 ) (188,200 ) Net deferred tax asset $ - $ -

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014
Going Concern Details Narrative
Net loss	$ 39,740	$ 49,109	$ 93,823	$ 157,714
Accumulated deficit	$ 647,383		$ 647,383		$ 553,560

Related Party Transactions wi17

Related Party Transactions with Multichip Display, Inc. (MDI) (Details) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014
Sales [Member]
Sales resulted from Transactions with MDI, Amount	$ 118,509	$ 183,159
Inventory purchases [Member]
Sales resulted from Transactions with MDI, Amount	84,769	174,984
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	1,294,444		$ 930,900
Accounts Payable [Member]
Related Party Transactions with MDI, Amount	1,281,092		1,018,831
Accrued interest payable [Member]
Related Party Transactions with MDI, Amount	53,333		38,333
Convertible note payable [Member]
Related Party Transactions with MDI, Amount	$ 250,000		$ 250,000

Related Party Transactions wi18

Related Party Transactions with Multichip Display, Inc. (MDI) (Details Narrative) - shares	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 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 wi19

Related Party Transactions with Initial Shareholder Group (Details Narrative) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Sep. 30, 2014
Consulting fees	$ 168,506		$ 129,506	$ 129,506
Officers And Shareholder [Member]
Consulting fees payable to officers and shareholder	$ 18,850	$ 43,752

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Taxes Details
Expected income tax benefit at statutory rate of 34%			$ 31,800	$ 53,623
Change in valuation allowance			$ (31,800)	$ (53,623)
Income tax expense (benefit)

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Deferred tax assets:
Tax benefit of net operating loss carry-forward	$ 191,000	$ 166,000
Book and tax difference for amortization of intangibles	29,000	22,200
Less: valuation allowance	$ 220,000	$ (188,200)
Net deferred tax asset

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - Jun. 30, 2015 - USD ($)	Total
Income Taxes Details Narrative
Federal net operating tax loss carry-forward	$ 561,000
Net operating loss carryforwards, expiration date	2,033
Deferred tax valuation	$ 31,800