An unauthorized collection of the records of Alternate Energy Holdings, inc., its principals and subsidiaries, and their antics, trials, and tribulations

Former AEHI CEO Don Gillispie

Former AEHI CEO Don Gillispie
OK, everyone, I've got to step out for just a minute. I'll be right back, I promise!

Wednesday, April 6, 2011

Alternate Energy Holdings' Annual Report Filed: $19.575M Cumulative Net Loss, Loses 38K On Energy Neutral Home, Company's "Internal Controls Not Effective Due to Material Weaknesses"

Alternate Energy Holdings, Inc., today finally filed their Annual Report, SEC Form 10-K, for the period ending Dec 31, 2010.
Among the highlights:
For the period, still zero revenue, and a cumulative loss pushing twenty million dollars:

Built an "Energy Neutral Home" and lost 38K, almost as much as they spent on cruises and travel:

But the really interesting part was the company's admission of their shitty control and recordkeeping:

Direct quote from page 35 of AEHI's SEC Form 10-K"

"A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. As a result of this evaluation, we concluded that our internal control over financial reporting was not effective as of December 31, 2010 because of the material weaknesses set forth below.

The following is a summary of our material weaknesses as of December 31, 2010:

Appropriate Documentation Not Retained

Controls established to obtain proper authorization and documentation of expenditures, valuation and recording processes for shares issued for services were not operating effectively. Documentation for some shares issued for services was missing.

Also, there are transactions recorded for services provided where an invoice to substantiate the expense could not be located. Invoices have not been retained to support expenditures reported as required by the Company.

As of February 2011, the Company has put an internal policy in place whereas the CFO is now pre-approving all invoices and stock issuances with the proper support of the CEO's approval of the expenditure. As of March 2011, the Company is providing a monthly listing of any new stock issuance to the Board of Directors for their review and authorization. Due to the current SEC investigation we are also providing the  SEC, on a monthly basis, all expenditures over $2,500 with the proper documentation to support the expenditure."

So, NOW (As of March, 2011) they are doing what they should have been doing all along?

Why did it take SEC involvement to get them to do what any legitimate company should have been doing from the outset?

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2 comments:

  1. Great analysis Dude!

    "what any legitimate company would have done", says it all. This company is anything but legitimate. Never has been and never will be.

    It all boils down to intent and capability. This company's intent appears to have been to bilk as many investors as possible. They were very good at bilking investors but other than that have no other capability that I can see.

    Their bookkeeping matches what might be expected from some junior high cheerleaders if that.

    What am I missing here?

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  2. In terms of financing our operations, including the acquisition of the Site and related water rights, and the NRC approval process, on November 22, 2010, we entered into an investment agreement (the “Investment Agreement”), with Centurion Private Equity, LLC, a Georgia Limited Liability Company (the “Investor”) pursuant to which the Company has the right to issue shares of its common stock to the Investor, and the Investor has agreed to purchase from the Company, from time to time as provided in the Investment Agreement, up to an aggregate of one hundred and fifty million dollars ($150,000,000) of shares of common stock subject to an effective registration statement registering the resale of the shares, and subject to certain limitations set forth in the Investment Agreement, including but not limited to limitations based upon the trading volume of the Company’s own stock. As of the filing of this Annual Report, we have not filed the registration statement which is a prerequisite to our being able to put shares of our common stock to the investor. As a result of the pending SEC lawsuit described under Item 3 – Legal Proceedings below, we are waiting to hear from the Investor whether they are willing to move forward under the Investment Agreement. In addition, given the current trading price of our common stock and the volume limitations contained in the Investment Agreement, we may not be able to raise significant sums of money under the Investment Agreement at this time.
    Since the commencement of operations through December 31, 2010, the Company did not recognize any revenues from its operational activities and suffered losses. It is likely that the Company will continue to sustain more losses in the future. There can be no assurance that the Company will ever operate profitably.

    Donald Gillipsie, president, Chief Executive Officer, Chief Operating Officer and Chairman of the Company, did not timely file Form 4s with respect to the common shares awarded to him as compensation on January 8, 2010, February 18, 2010 and June 24, 2010 or restricted shares of our common stock he purchased from the Company on September 23, 2010.

    Gregory E. Kane, Vice President and Director of the Company, did not file Form 4s with respect to the shares of our common stock awarded to him as compensation on January 8, 2010 and February 18, 2010.

    John Franz, Vice President and Director of the Company, did not file Forms 4 with respect to the shares of our common stock awarded to him as compensation on January 8, 2010 and February 18, 2010 or restricted shares of our common stock he purchased from the Company on September 16, 2010.

    Rick J. Bucci, Vice President and Chief Financial Officer of the Company, did not timely file Form 4s with respect to shares of our common stock awarded to him as compensation on January 8, 2010, February 18, 2010 and June 11, 2010 or restricted shares of our common stock he purchased from the Company on September 21, 2010.

    Leon Eliason, Director of the Company, did not timely file Form 4s with respect to shares of our common stock awarded to him as compensation on January 8, 2010 and February 18, 2010 or resticted shares or our common stock he purchased from the Company on September 15, 2010.

    Kenneth A. Strahm Sr., Director of the Company, did not timely file Form 4s with respect to shares of our common stock awarded to him as compensation on January 8, 2010 and February 18, 2010.

    Ralph Beedle, Director of the Company, did not timely file Form 4s with respect to shares of our common stock awarded to him as compensation on January 8, 2010 and February 18, 2010 or restricted shares of our common stock he purchased from the Company on September 17, 2010.

    Mike Sellman, Director of the company, did not file Form 4s with respect to shares of our common stock awarded to him as compensation on January 8, 2010 and February 18, 2010 or restricted shares of our common stock he purchased from the Company on September 28, 2010.

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