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!

Saturday, April 9, 2011

Annual Report Highlights, Part II: Employee Reductions, Don's House Now An Executive Office and Slumber Party House, Land Price Up 67%!

After getting busted by the SEC, Alternate Energy Holdings, Inc. has made a few changes in how they report certain items in their Annual report. Highlights below:


Downsizing:
2009 Annual Report:
Employees
The Company and its subsidiaries have 15 full-time employees. In addition, nine officers and directors provide certain services dedicated to current corporate and business development activities. In the future, the officers will devote services on a full-time basis and six independent directors will serve part-time up to ten hours per week.
 
2010 Annual Report:
Employees
As of March 31, 2011 the Company and its subsidiaries have 7 full-time employees. In addition, because we are an early stage company, we also retain at any given time the services of five to ten third party contractors or consultants, including our CEO, who provide management, engineering, surveying, construction and other services in support of the project and our other business units.
 
Fix the double-dipping by reclassifying the house:
2009 Annual Report:
Item 2. Properties
The Company’s operations are principally located at 911 E. Winding Creek Dr., Suite 150, Eagle, Idaho 83616. The Company currently pays $1,300 as monthly rent for the use of this office. Once the construction of the Idaho Energy Complex is completed, the plant will become the Company’s primary facility.
 
2010 Annual Report:
Item 2. Properties
The Company’s operations are principally located at 911 E. Winding Creek Dr., Suite 150, Eagle, Idaho 83616. The Company currently pays $2,000 as monthly rent for the use of this office which is renewable annually. Once the construction of the Idaho energy complex is completed, the plant will become the Company’s primary facility. The Company also rents a 4,000 square foot home in Eagle, Idaho, at a current rental of $3,000 per month. This location is used as additional office space by Company executives and for lodging and meetings when third parties are visiting the Company from out of town. Any personal use of the home by any Company executive is treated as additional compensation to such executive.

 That would appear to be the house featured in the exhibits to the SEC complaint- the house the company was paying for while Don received a housing allowance at the same time.
Conveniently, the company now tries to claim it is an additional corporate office.
Ada County Assessor's file on 2554 N Saddle Mountain Way

See the "Zone Code: R1 in the image above? That creates a problem with the company using that house as a business or professional office:  it's a prohibited use in a residential zone, according to the City of Eagle Zoning table.  From "how to read the table:"
To determine in which district a specific use is allowed:
A. Find the use in one of the land use groups;
B. Read across the chart until either "P" or "C" appears in one of the columns;...if no letter appears the use is prohibited.

Going down the list, we see commercial offices (business and professional), hotels, motels, "professional activities", circuses, laundries, clubs or lodges- none of those are permitted uses in a residential zone, or on property zoned R-1 as the property at 2554 N. Saddle Mountain is.  So, if the house is being used primarily as an office for a commercial enterprise, it is a zoning violation.  Otherwise, it's just Don's house.
 
Site Land price increases by Ten Million Dollars:
2009 Annual Report:
The Site
After a three-year search, the Company has, through Idaho Energy, located a primary site (the “Site”) in Payette, Idaho that will cost approximately $15.0 million, including the acquisition of water rights. This location is well suited for the licensing, construction and development of a nuclear power reactor.
 
2010 Annual Report:
The Site
After a three-year search, the Company has, through Idaho Energy, located a primary site (the “Site”) in Payette, Idaho that will cost approximately $25.0 million, including the acquisition of water rights. The Company believes this location is well suited for the licensing, construction and development of a nuclear power reactor.
 
2009 Annual Report
Land Purchase Agreement
There is an agreement between the Company and the current site owner for the purchase of the land (the “Land Purchase Agreement”) and a draft agreement for the water rights and additional land, which is expected to be executed as a final water rights agreement by the end of March 2010. Once completed, the agreement will transfer title to Idaho Energy upon constructive receipt of an approximately $5.0 million cash payment for the land plus $10.0 million for additional land with water rights.

2010 Annual Report
Land Purchase Agreement
There is an agreement between the Company and the current site owner for the purchase of the land (the “Land Purchase Agreement”) and an agreement for the water rights and additional land for backup site. Once completed, the agreement will transfer title to Idaho Energy upon constructive receipt of an approximately $5.0 million cash payment for the land plus $20.0 million for additional land with water rights. A 4% deposit was previously paid to hold the land for up to twelve months, which was subsequently extended for an additional twelve months to through the end of 2011.
 
Cost of Overseas Operations quadruples:
2009 Annual Report:
The Company estimates the cost of operation for its four corporate subsidiaries will be approximately $750,000 per year.
2010 Annual Report:
The Company estimates the cost of operation for its four corporate subsidiaries will be approximately $3,000,000 per year excluding phase 1 of the Project.

Whoops, there goes a hundred grand up in smoke:
2009 Annual Report:
At December 31, 2009, the Company had a $100,000 deposit held in the escrow with Perkins Coie to fund a potential joint venture project to develop and manufacture a hybrid engine in China.

2010 Annual Report:
Deposit represented monies held in escrow for a potential joint venture project that will develop and manufacture a hybrid engine in China. The funds were released from escrow and replaced with a note receivable that was deemed to be uncollectible and of no value at December 31, 2010.

Who? Never Heard of Her:  Scrub, scrub, scrub!
2009 Annual Report:
Jennifer Ransom, Senior Vice President of Administration and Corporate Secretary
(The Key Senior Executive Vice President's name appears thirteen times in this report)

2010 Annual Report:
Jennifer WHO? The Former Key Senior Executive Vice President's name now appears only once, listing her in a table as "Jennifer Ransom, owner of 5% or more" with the incredible seventeen million shares she received for what the company now claims is really expensive office help.

More in another post.....

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1 comment:

  1. The Dude nails it again!! Lost money, zoning violations, the house is burning down and there is no water is sight!!

    ReplyDelete