Mass Megawatts continues on downward spiral, reports net losses
Mass Megawatts Wind Power Inc. (OTC: MMMW) in Worcester, Mass. reported no revenues and a net loss of $149,000 for the three months that ended in January, the company’s third quarter.
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Founded in 1997, the company has incurred an operating loss every year since, totalling $6.8 million to date. The company said in the filing that it is “soliciting additional equity investors through private placement offerings and is obtaining funding from Mass Megawatts’ CEO to fund these losses; however, no assurance can be given as to the success of these efforts.”Got that? They have been in business since 1997 and have never turned a profit. Now, I'm curious. I thought that, in order to be considered a business - as opposed to a hobby - an entity had to turn a profit at least once every three years. Now, I have never claimed to be a business guy (I'm a biochemist working in sales who writes on the side. Go figure), but it would seem to me that after a period of time - say, five years - it would become evident to even the most diehard green that this business model is not working.
Here's the kicker:
The company had total assets of $26,961 as of Jan. 31.
I have that in my truck and my motorcycle, folks... How on earth can a business continue to call itself a business, when, after nearly 16 years they have never made a profit, have stock that sells literally for pennies, and have net assets equivalent to a small SUV? Now, I applaud their commitment - they have 14 employees, and have managed to stay afloat for the better part of a generation. But unless they have a comptroller with the financial-fu of Larry Correia, it's hard to see how they've managed to walk the fine line between barely staying afloat and going the way of the dodo for sixteen years.
But, hey, if they've managed to do it without taking stimulus money or bailouts, good for them!
That is all.
5 comments:
The 3-year rule is just how long you can keep deducting expenses from a business from your personal taxes. If your business is a chapter-C corporation, it can keep on losing money until it runs out of sources of money to lose, and nobody in authority will care.
Of course, how they've kept on coming up with sources of money to lose for 16 years is a whole other question. :)
They've probably taken the production tax credit, which is a Federal subsidy for wind and other commercial renewable energy sources to make them more cost competitive with traditional energy. But it's only paid when the juice is actually produced, unlike the loan guarantees we've seen dumped on green development companies these past few years.
You have to admire their persistence. (and hiring a CEO with deep pockets helps.)
There's probably a State Tax Abatement and "Green Energy" Deductions involved there also.
It's a money laundering operation.
I guess the mob went where the real money is...
Energy scams.
No revenue and just now announcing plans to sell ..... In other words they have never actually sold any of their systems.
..... and no wonder, at $ 750 per KW. Cost. Generating electricity only in light wind conditions it takes a lot of hours at $ 0.12 / KWH. Before you have a positive ROI
NotDilbert
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