Nevada
|
26-0768064
|
(State
or other jurisdiction of incorporation or
organization)
|
(I.R.S.
Employer Identification Number)
|
Large accelerated filer
o
|
Accelerated filer
o
|
Non-accelerated filero
|
Smaller reporting company
x
|
Page
|
|
PART
I
|
|
Special
Note Regarding Forward-Looking Statements
|
1
|
Item
1. Business
|
1
|
Item
1A. Risk Factors
|
18
|
Item
2. Properties
|
31
|
Item
3. Legal Proceedings
|
32
|
Item
4. Submission of Matters to a Vote of Security Holders
|
32
|
PART
II
|
|
Item
5. Market for Registrant's Common Equity, Related Stockholder Matters and
Issuer Purchases of Equity Securities
|
32
|
Item
6. Selected Financial Data - As a Smaller Reporting Company this item is
not required
|
32
|
Item
7. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
|
33
|
Item
7A. Quantitative and Qualitative Disclosures About Market Risk - As a
Smaller Reporting Company, this item is not required
|
37
|
Item
8. Financial Statements and Supplementary Data
|
37
|
Item
9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
|
37
|
Item
9A(T). Controls and Procedures
|
38
|
Item
9B. Other Information
|
39
|
PART
III
|
|
Item
10. Directors, Executive Officers and Corporate Governance
|
39
|
Item
11. Executive Compensation
|
41
|
Item
12. Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters
|
41
|
Item
13. Certain Relationships and Related Transactions, and Director
Independence
|
41
|
Item
14. Principal Accountant Fees and Services
|
43
|
PART
IV
|
|
Item
15. Exhibits and Financial Statement Schedules
|
45
|
SIGNATURES
|
46
|
Index
to Financial Statements
|
47
|
|
·
|
Fossil fuel supply constraints:
Limited supply and escalating consumption of coal, oil, and natural gas
continue to drive up wholesale electricity prices, resulting in higher
electricity costs for
consumers.
|
|
·
|
Infrastructure constraints: In
many parts of the world, electricity demand exceeds the capacity of
existing electricity generation, transmission and distribution
infrastructure.
|
|
·
|
Desire for energy security: As
political and economic instability in key oil and natural gas producing
regions have increased, governments are increasingly focusing on
developing reliable and secure energy
sources.
|
|
·
|
Environmental concerns: Long-term
use of fossil fuels is associated with a range of environmental issues
including global warming, air pollution and water pollution, the increased
prevalence of which is driving increased environmental
awareness.
|
|
·
|
PV
modules
|
|
·
|
Solar lighting system including
solar lamps for road and highway
infrastructure
|
■ Solar
modules GYSP-200
|
||||
Characteristics
Open
circuit voltage(Voc): 48V
Optimum
operating voltage:
(Vmp)37.5V
Short
circuit current(Isc): 5.46A
Optimum
operating current(Imp): 5.2A
Peak
power(Pm): 200W
|
Specifications
Monocrystalline
silicon
Dimension(mm):1830x825x50
Tolerance:
±5%
Weight:16.9kg
Maximum
system voltage: 1000V DC
|
|||
■ Solar
modules GYSP-180
|
||||
|
Characteristics
Open
circuit voltage(Voc): 44.9V
Optimum
operating voltage:
(Vmp)38.6V
Short
circuit current(Isc): 5.1A
Optimum
operating current(Imp): 4.68A
Peak
power(Pm): 180W
|
Specifications
Monocrystalline
silicon
Dimension(mm):
1715x802x45
Tolerance:
±5%
Weight:
16.9kg
Maximum
system voltage: 1000V DC
|
||
■ Solar
modules GYSP-175
|
||||
|
Characteristics
Open
circuit voltage(Voc): 44.06V
Optimum
operating voltage:
(Vmp)35.5V
Short
circuit current(Isc): 5.25A
Optimum
operating current(Imp):
4.95A
Peak
power(Pm): 175W
|
Specifications
Monocrystalline
silicon
Dimension(mm):
1580x808x37
Tolerance:
±5%
Weight:
15.3kg
Maximum
system voltage: 1000V DC
|
■ Solar
modules GYSP-160
|
||||
|
Characteristics
Open
circuit voltage(Voc): 43.2V
Optimum
operating voltage (Vmp): 35V
Short
circuit current (Isc): 5.1A
Optimum
operating current (Imp): 4.59A
Peak
power(Pm): 160W
|
Specifications
Monocrystalline
silicon
Dimension
(mm): 1588x802x45
Tolerance:
± 5%
Weight:
15.6kg
Maximum
system voltage: 1000V DC
|
|
■ Solar
modules GYSP-130
Characteristics
Open
circuit voltage(Voc): 22.6V
Optimum
operating voltage (Vmp): 17.6V
Short
circuit current (Isc): 7.83A
Optimum
operating current (Imp): 7.35A
Peak
power(Pm): 130W
|
Specifications
Monocrystalline
silicon
Dimension
(mm): 1466x656x40
Tolerance:
± 5%
Weight:
13.2kg
Maximum
system voltage: 1000V DC
|
||
|
■ Solar
modules GYSP-120
Characteristics
Open
circuit voltage(Voc): 22.5V
Optimum
operating voltage (Vmp): 17.5V
Short
circuit current (Isc): 7.12A
Optimum
operating current (Imp): 6.8A
Peak
power(Pm): 120W
|
Specification
Monocrystalline
silicon
Dimension
(mm): 1425X650X40
Tolerance:
± 5%
Weight:
10.8kg
Maximum
system voltage: 1000V DC
|
||
■ Solar
modules GYSP-100
|
||||
|
Characteristics
Open
circuit voltage(Voc): 21.6V
Optimum
operating voltage (Vmp): 17.4V
Short
circuit current (Isc): 7.24A
Optimum
operating current (Imp): 6.14A
Peak
power(Pm): 100W
|
Specifications
Monocrystalline
silicon
Dimension
(mm): 1425X650X40
Tolerance:
± 5%
Weight:
10.8kg
Maximum
system voltage: 1000V
DC
|
|
■ Solar
modules GYSP-80
Characteristics
Open
circuit voltage(Voc): 21.3 V
Optimum
operating voltage (Vmp): 17.4 V
Short
circuit current (Isc): 5.2A
Optimum
operating current (Imp): 4.6A
Peak
power(Pm): 80W
|
Specifications
Monocrystalline
silicon
Dimension(mm):
802X802X35
Tolerance:
±5%
Weight:
9.1kg
Maximum
system voltage: 720V DC
|
||
|
■ Solar
modules GYSP-65
Characteristics
Open
circuit voltage(Voc): 21.6V
Optimum
operating voltage (Vmp): 17.5V
Short
circuit current (Isc): 3.51A
Optimum
operating current (Imp): 3.71A
Peak
power(Pm): 65W
|
Specifications
Monocrystalline
silicon
Dimension(mm):
785X650X28
Tolerance:
±5%
Weight:
5kg
Maximum
system voltage: 720V DC
|
■ Solar
modules GYSP-50
|
||||
|
Characteristics
Open
circuit voltage(Voc): 21.8V
Optimum
operating voltage (Vmp): 17.9V
Short
circuit current (Isc): 3.0A
Optimum
operating current (Imp): 2.81A
Peak
power(Pm): 50W
|
Specifications
Monocrystalline
silicon
Dimension(mm):
540X710X35
Tolerance:
±5%
Weight:
5.3kg
Maximum
system voltage: 720V DC
|
||
■ Solar
modules GYSP-40
|
||||
|
Characteristics
Open
circuit voltage(Voc): 21.8V
Optimum
operating voltage (Vmp): 17V
Short
circuit current (Isc): 2.55A
Optimum
operating current (Imp): 2.34A
Peak
power(Pm): 40W
|
Specifications
Monocrystalline
silicon
Dimension(mm):
758X534X30
Tolerance:
±5%
Weight:
5.8kg
Maximum
system voltage: 720V DC
|
||
■ Solar
modules GYSP-30
|
||||
|
Characteristics
Open
circuit voltage(Voc): 21.5V
Optimum
operating voltage (Vmp): 16.8V
Short
circuit current (Isc): 2.02A
Optimum
operating current (Imp): 1.79A
Peak
power(Pm): 30W
|
Specifications
Monocrystalline
silicon
Dimension(mm):
435X650X25
Tolerance:
±5%
Weight:
3.5kg
Maximum
system voltage: 720V DC
|
■ Solar
modules GYSP-20
|
||||
|
Characteristics
Open
circuit voltage(Voc): 21.5V
Optimum
operating voltage (Vmp): 16.9V
Short
circuit current (Isc): 1.35A
Optimum
operating current (Imp): 1.2A
Peak
power(Pm): 20W
|
Specifications
Monocrystalline
silicon
Dimension(mm):
605X287X25
Tolerance:
±5%
Weight:
3.1kg
Maximum
system voltage: 720V DC
|
||
■ Solar
modules GYSP-10
|
||||
|
Characteristics
Open
circuit voltage(Voc): 21.5V
Optimum
operating voltage (Vmp): 17V
Short
circuit current (Isc): 0.71A
Optimum
operating current (Imp): 0.58A
Peak
power(Pm): 10W
|
Specifications
Monocrystalline
silicon
Dimension(mm):
288X310X28
Tolerance:
±5%
Weight:
2.1kg
Maximum
system voltage: 720V DC
|
|
·
|
Department of Defense
installations: Perimeter security, parking lots,
recreation
|
|
·
|
Utilities companies: Emergency
back-up lighting, remote customer
lighting
|
|
·
|
Advertisers: Billboards and
advertising shelters
|
|
·
|
Industrial/commercial customers:
Parking lots, security, welcome
signs
|
|
·
|
Department of Transportation
Signage: On/off ramps and rest area
lighting
|
|
·
|
Residential developers,
homeowners associations: Roads, bike paths and identification
signage
|
|
·
|
Homeowners: Garden lights, safety
lighting, etc.
|
|
|
|
GYSL-1
|
GYSL-6
|
|
5V
2.5AH Lead-Acid Battery
8 W
light tube
Alternative
charging Mode
Car
charger
Adaptor
Solar
panel
Charging
time: 8 times
Continuously
work for 30 hours
Carton
size 68X40X52
23.5Kg
|
6V
1.5AH Ni-MH Battery
7
Lumination Time 8 hours
Continuous
Working Time 7 days
Body
Material plastic body
Color
white/Green/Yellow
1
LED 10000mcd 8h 2Batteries
Carton
size 35X45x56
|
|
|
|
|
|||
GYSL-2
|
GYSL-3
|
GYSL-4
|
GYSL-5
|
|||
5V
2.5AH Lead-Acid Battery
8W
Light Tube
Alternative
charging Mode
Car
charger
Adaptor
Solar
panel
Charging
time: 8 times
Continuously
work for 30 hours
Carton
size 65X42X42.5
10.5Kg
|
Stainless
Steel Body
8W
Light Tube
Continuously
work for 30 hours
Carton
size 65X42X42.5
16.5Kg
|
175W
Solar Energy system
70Ah
Battery
Controller
7A
Energy
Conservation Lamp 15W
Lumination
Time 8 hours
Continuous
Working Time 7 days
|
6V
1.5AH Ni-MH Battery
7W
Light Tube
Charging
time: 8 times
Continuously
work for 30 hours
Carton
size 35X42X120
Color
White
|
|
|
|
|
|||
GYSL-7
|
GYSL-8
|
GYSL-9
|
GYSL-10
|
|||
100W
Solar Energy system
60Ah
Battery
Controller
10A
Energy
Conservation Lamp 15W
Lumination
Time 8 hours
Continuous
Working Time
7
days
|
45W
Solar Energy system
50Ah
Battery
Controller
7A
Energy
Conservation Lamp 12W
Lumination
Time 8 hours
Continuous
Working Time
7
days
|
40W
Solar Energy system
65Ah
Battery
Controller
6A
Energy
Conservation Lamp 11W
Lumination
Time 8 hours
Continuous
Working Time
7
days
|
80W
Solar Energy system
100Ah
Battery
Controller
7A
Energy
Conservation Lamp 10W
Lumination
Time 8 hours
Continuous
Working Time
7
days
|
Product Line
|
Annual Capacity
|
Equipment Details
|
Total
Equipment
Costs (US$)
|
|
||||
Solar
Wafer
|
7.4
MW
|
2 wire saws @ $333,818/set
|
$
|
667,636
|
||||
Silicon ingot
|
16.6 MW
|
10 grower @ $125,808/set
|
$
|
1,258,080
|
||||
PV
Module
|
20
MW
|
2 lines @ $700,000/line
|
$
|
1,400,000
|
||||
Total:
|
$
|
3,325,716
|
Function
|
Planned Headcount
|
|||
Sales
|
10
|
|||
Administration
& Accounting
|
26
|
|||
Senior
Management
|
0
|
|||
Production
|
214
|
|||
Total
|
250
|
|
·
|
reduce our investments in
research and development;
|
|
·
|
limit our marketing efforts;
and
|
|
·
|
decrease or eliminate capital
expenditures.
|
|
·
|
availability of government
subsidies and incentives to support the development of the PV
industry;
|
|
·
|
cost-effectiveness of PV products
compared to conventional and other non-solar energy sources and
products;
|
|
·
|
performance and reliability of PV
products compared to conventional and other non-solar energy sources and
products;
|
|
·
|
success of other alternative
energy generation technologies, such as fuel cells, wind power and
biomass;
|
|
·
|
fluctuations
in economic and market conditions that affect the viability of
conventional and non-solar alternative energy sources, such as increases
or decreases in the prices of oil, coal, natural gas and other fossil
fuels;
|
|
·
|
cost and availability of credit,
loans and other funding mechanisms to finance the installation and
maintenance of PV systems. For example, a rise in interest rates would
likely render existing financings more expensive and be an obstacle for
potential financings that would otherwise spur the growth of the PV
industry;
|
|
·
|
capital expenditures by end users
of PV products, which tend to decrease when the economy slows down;
and
|
|
·
|
deregulation of the electric
power industry and broader energy
industry.
|
·
|
reduction, delay or cancellation
of orders from one or more significant
customers;
|
|
·
|
selection by one or more
significant customers of products competitive with
ours;
|
|
·
|
loss of one or more significant
customers and our failure to identify additional or replacement customers;
and
|
|
·
|
failure of any significant
customers to make timely payment for our
products.
|
|
·
|
Judgments of United States courts
obtained against us or these non-residents based on the civil liability
provisions of the securities laws of the United States or any state;
or
|
|
·
|
In original actions brought in
the Republic of China, liabilities against us or non-residents predicated
upon the securities laws of the United States or any state. Enforcement of
a foreign judgment in the Republic of China also may be limited or
otherwise affected by applicable bankruptcy, insolvency, liquidation,
arrangement, moratorium or similar laws relating to or affecting
creditors' rights generally and will be subject to a statutory limitation
of time within which proceedings may be
brought.
|
Year
|
Quarter Ended
|
High
|
Low
|
|||||||
2009
|
December
31
|
$
|
0.58
|
0.15
|
||||||
September
30
|
$
|
0.15
|
0.15
|
|||||||
June
30
|
$
|
N/A
|
N/A
|
|||||||
March
31
|
N/A
|
N/A
|
||||||||
2008
|
December
31
|
N/A
|
N/A
|
|||||||
September
30
|
N/A
|
N/A
|
||||||||
June
30
|
N/A
|
N/A
|
||||||||
March
31
|
N/A
|
N/A
|
|
(1)
|
Capital
demand in daily operations. This category of capital demand
includes expenses/cash demands incurred from public company operations,
for instance legal fees, audit/review fees and other consulting fees; and
capital demands incurred from the Company’s operating entity of NUST,
including management staff and production workers’ wages and other utility
fees such as electricity and water, etc. The Company expects to
demand around $120,000 per month under this
category.
|
|
(2)
|
Capital
demand for building up manufacturing facilities in NUST. The
Company plans to invest about $3,000,000 during fiscal 2010 in purchasing
machineries and building up other long-term
assets.
|
|
(3)
|
Capital
demand for further expand NUST to produce new products. If the
Company’s cash flow status allows, it plans to invest $15,000,0000 in NUST
to further expand the Company's current workshops in order to enable the
Company to produce solar battery
products.
|
Name
|
Age
|
Position
|
Date Of Appointment
|
|||
Wensheng Chen
|
77
|
Chief Executive Officer and Chairman of the Board of
Directors
|
July 25, 2007,
|
|||
Ling Chen
|
46
|
President, Chief Financial Officer, Treasurer, Secretary and
Board Director
|
July 25, 2007
|
Name
|
Year
|
Salary
|
Bonus
|
Stock
|
Option
|
Non-Equity
|
Nonqualified
|
Other
|
Total
|
|||||||||||||||||||||||||
Wensheng
Chen
|
2009
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
$
|
0
|
|||||||||||||||||||||||
2008
|
$
|
10,215
|
-
|
-
|
-
|
-
|
-
|
-
|
$
|
10,215
|
||||||||||||||||||||||||
Ling
Chen
|
2009
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
$
|
0
|
|||||||||||||||||||||||
2008
|
$
|
10,215
|
-
|
-
|
-
|
-
|
-
|
-
|
$
|
10,215
|
Name
|
Position Held
|
Shares Owned
|
%
Owned
|
|||||||
Officers
and Directors
|
||||||||||
Wensheng
Chen
|
Chairman
of the Board of Directors
|
15,000,000
|
(1)
|
66.4
|
%
|
|||||
Ling
Chen
|
President
& Chief Financial Officer
|
193,233
|
(2)
|
*
|
%
|
|||||
All
executive officers and directors as a group (2 persons)
|
15,193,233
|
67.3
|
%
|
|||||||
5%
Shareholder
|
||||||||||
Hui
Chen
|
5,000,000
|
22.1
|
||||||||
Yumin
Liu
|
15,000,000
|
(3)
|
66.4
|
%
|
Name of Individuals
|
% of Sharing
|
|||
Hongtao
Shi
|
35
|
%
|
||
Liuyi
Zhang
|
25
|
%
|
||
Yulan
He
|
15
|
%
|
||
Allstar
|
25
|
%
|
||
Total
|
100
|
%
|
First
Prestige, Inc.
|
326,343
|
|||
JD
Infinity Holdings, Inc.
|
233,102
|
|||
Catalpa
Holdings, Inc.
|
233,102
|
|||
Yulan
He
|
139,861
|
|||
Avenndi
LLC
|
10,000
|
2009
|
2008
|
|||||||
Audit
Fees
|
$
|
26,000
|
$
|
27,500
|
||||
Audit-Related
Fees
|
-
|
-
|
||||||
Total
Audit and Audit-Related Fees
|
$
|
26,000
|
$
|
27,500
|
||||
Tax
Fees
|
-
|
-
|
||||||
All
Other Fees
|
4,500
|
-
|
||||||
Total
for independent public audit firms
|
$
|
30,050
|
$
|
27,500
|
(a)
|
(1)
|
Financial
Statements
|
Set
forth below is a list of our audited financial statements included in Item
8 of this annual report on Form
10-K.
|
Statement
|
Page*
|
|
Index
to Financial Statements
|
47
|
|
Report
of Independent Registered Public Accounting Firm
|
F-1
|
|
Balance
Sheets
|
F-2
|
|
Statements
of Operations
|
F-3
|
|
Statement
of Changes in Stockholder’s Equity (Deficit)
|
F-4
|
|
Statements
of Cash Flows
|
F-5
|
|
Notes
to Financial Statements
|
F-6
|
|
*Page
F-1 follows page 47 to this annual report on Form 10-K.
|
|
(2)
|
Financial
Statement Schedules
|
Schedule
I: Parent Only Financial Statements (p.
S-1)
|
Exhibit No.
|
Description
|
|
3.1
|
Articles
of Incorporation(1)
|
|
3.2
|
Bylaws
of the Company(1)
|
|
10.1
|
Agreement
between Kuong U Science & Technology (Group) Ltd. and the Arizona
Board of Regents on behalf of Arizona State
University(1)
|
|
10.2
|
Prototype
Product Development Agreement between Kuong U Science & Technology
(Group) Ltd. and Zhuhai Yuemao Laser Facility Engineering Co.,
Ltd.(1)
|
|
10.3
|
Land
Purchase Agreement dated December 1, 2008(2)
|
|
10.4
|
Sales
contracts by and between the Company and Kotak Urja Private Limited dated
February 26, 2009(3)
|
|
10.5
|
Loan
Agreement dated December 1, 2009 by and between Nanyang Universal Solar
Technology Co., Ltd. and Zhuhai Yuemao Laser Facility Engineering Co.,
Ltd.(3)
|
|
21.1
|
List
of Subsidiaries(1)
|
|
31.1*
|
Certification
of Principal Executive Officer and Principal Financial Officer pursuant to
Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and
Exchange Act of 1934, as amended*
|
|
32.1*
|
Certification
pursuant to Section 906 of Sarbanes Oxley Act of 2002 (Chief Executive
Officer and Chief Financial Officer)*
|
|
*Filed
herewith
(1)
Filed as exhibit to the Company’s Registration Statement on Form S-1 on
May 9, 2008.
(2)
Filed as exhibit to the Company’s Annual Report on Form 10-K on March 31,
2010.
(3) Filed as exhibit to the Company’s Annual
Report on Form 10-K/A on December 30,
2010.
|
Universal
Solar Technology, Inc.
|
|
By:
|
/s/
Wensheng Chen
|
Wensheng
Chen
|
|
Chief
Executive Officer, Interim Acting Chief Financial Officer and Chairman of
the Board of Directors
|
|
(Principal Executive Officer and Principal Financial and Accounting
Officer)
|
SIGNATURE
|
TITLE
|
|||
/s/ Wensheng Chen
|
CEO,
Interim Acting Chief Financial
Officer and Chairman
|
|||
Wensheng Chen
|
(Principal Executive Officer
and Principal Financial and Accounting Officer)
|
January
31, 2011
|
||
/s/ Ling Chen
|
Director
|
|||
Ling Chen
|
January
31, 2011
|
Reports
of Independent Registered Public Accounting Firm
|
F-1
|
|
Balance
Sheets as of December 31, 2009 and 2008
|
F-2
|
|
Statements
of Operations for the Years Ended December 31, 2009 and
2008
|
F-3
|
|
Statements
of Changes in Stockholders' Equity (Deficit) for the Years Ended December
31, 2009 and 2008
|
F-4
|
|
Statements
of Cash Flow for the Years Ended December 31, 2009 and
2008
|
F-5
|
|
Notes
to Financial Statements
|
F-6
|
|
Schedule
I: Parent Only Financial Statements
|
S-1
|
|
Balance
Sheet as of December 31, 2009 and 2008
|
S-1
|
|
Statement
of Operations and comprehensive Income for the Years Ended December 31,
2009 and 2008
|
S-2
|
|
Statement
of Cash Flow for the Years Ended December 31, 2009 and
2008
|
S-3
|
UNIVERSAL
SOLAR TECHNOLOGY, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED
BALANCE SHEETS
|
||||||||
December
31, 2009
|
December
31, 2008
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
|
$
|
1,115,047
|
$
|
259,025
|
||||
Prepaid
expenses and other current assets
|
319,123
|
26,666
|
||||||
Inventories
|
42,956
|
-
|
||||||
TOTAL
CURRENT ASSETS
|
1,477,126
|
285,691
|
||||||
Deposits
for future deliveries of property and equipment
|
312,362
|
-
|
||||||
Land
use right, net of accumulated amortization of $11,452 and $0,
respectively
|
411,391
|
423,420
|
||||||
Property
and equipment, net of accumulated depreciation of $3,446 and $0,
respectively
|
3,294,946
|
-
|
||||||
TOTAL
ASSETS
|
$
|
5,495,825
|
$
|
709,111
|
||||
LIABILITIES
AND STOCKHOLDERS' DEFICIENCY
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Accounts
payable and accrued expenses
|
$
|
154,813
|
$
|
42,450
|
||||
Due
to related parties-current portion
|
5,675,528
|
749,298
|
||||||
TOTAL
CURRENT LIABILITIES
|
5,830,341
|
791,748
|
||||||
Due
to related parties- non-current portion
|
22,485
|
22,485
|
||||||
TOTAL
LIABILITIES
|
5,852,826
|
814,233
|
||||||
STOCKHOLDERS'
DEFICIENCY:
|
||||||||
Preferred
stock, $0.0001 par value, 10,000,000
shares authorized, 0 shares issued and
outstanding
|
-
|
-
|
||||||
Common
stock, $0.0001 par value, 90,000,000
shares authorized, issued and outstanding 22,599,974 shares
and 22,574,974 shares, respectively
|
2,260
|
2,257
|
||||||
Additional
paid-in capital
|
553,826
|
416,273
|
||||||
Accumulated
deficit
|
(925,466
|
)
|
(503,904
|
)
|
||||
Accumulated
other comprehensive income (loss)
|
12,379
|
(19,748
|
)
|
|||||
TOTAL
STOCKHOLDERS' DEFICIENCY
|
(357,001
|
)
|
(105,122
|
)
|
||||
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
|
$
|
5,495,825
|
$
|
709,111
|
UNIVERSAL
SOLAR TECHNOLOGY, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
||||||||
Year
Ended
|
Year
Ended
|
|||||||
December
31, 2009
|
December
31, 2008
|
|||||||
SALES
|
$
|
691,713
|
$
|
11,454
|
||||
COSTS
AND EXPENSES:
|
||||||||
Cost
of sales
|
619,497
|
10,985
|
||||||
Selling,
general and administrative expenses
|
343,445
|
312,800
|
||||||
TOTAL
COSTS AND EXPENSES
|
962,942
|
323,785
|
||||||
LOSS
FROM OPERATIONS
|
(271,229
|
)
|
(312,331
|
)
|
||||
Interest
expense
|
(148,490
|
)
|
(36,616
|
)
|
||||
Dividend
and interest income
|
1,892
|
471
|
||||||
Gain
(loss) on foreign currency transactions
|
(3,735
|
)
|
1,483
|
|||||
NET
LOSS
|
(421,562
|
)
|
(346,993
|
)
|
||||
OTHER
COMPREHENSIVE INCOME (LOSS):
|
||||||||
Foreign
currency translation adjustment
|
32,127
|
(14,634
|
)
|
|||||
COMPREHENSIVE
LOSS
|
$
|
(389,435
|
)
|
$
|
(361,627
|
)
|
||
Loss
per common share -basic and diluted
|
$
|
(0.02
|
)
|
$
|
(0.02
|
)
|
||
Weighted
average number of shares outstanding -basic
and diluted
|
22,587,988
|
20,997,561
|
UNIVERSAL
SOLAR TECHNOLOGY, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONSOLIDATED
STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIENCY
|
||||||||||||||||||||||||
COMMON
|
ADDITIONAL
|
OTHER
|
||||||||||||||||||||||
STOCK
|
PAID-IN
|
ACCUMULATED
|
COMPREHENSIVE
|
|||||||||||||||||||||
SHARES
|
AMOUNT
|
CAPITAL
|
DEFICIT
|
INCOME
(LOSS)
|
TOTAL
|
|||||||||||||||||||
BALANCE-
DECEMBER 31, 2007
|
20,000,000
|
$
|
2,000
|
$
|
128,757
|
$
|
(156,911
|
)
|
$
|
(5,114
|
)
|
$
|
(31,268
|
)
|
||||||||||
Stock
issued for services
|
942,408
|
94
|
9,330
|
-
|
-
|
9,424
|
||||||||||||||||||
Sale
of common stock
|
1,632,566
|
163
|
241,570
|
-
|
-
|
241,733
|
||||||||||||||||||
Imputed
interest on stockholder loan
|
-
|
-
|
36,616
|
-
|
-
|
36,616
|
||||||||||||||||||
Foreign
currency translation adjustment
|
-
|
-
|
-
|
-
|
(14,634
|
)
|
(14,634
|
)
|
||||||||||||||||
Net
loss
|
-
|
-
|
-
|
(346,993
|
)
|
-
|
(346,993
|
)
|
||||||||||||||||
BALANCE
- DECEMBER 31, 2008
|
22,574,974
|
2,257
|
416,273
|
(503,904
|
)
|
(19,748
|
)
|
(105,122
|
)
|
|||||||||||||||
Stock
issued for services
|
25,000
|
3
|
3,747
|
-
|
-
|
3,750
|
||||||||||||||||||
Imputed
interest on loans from related parties
|
-
|
-
|
133,806
|
-
|
-
|
133,806
|
||||||||||||||||||
Foreign
currency translation adjustment
|
-
|
-
|
-
|
-
|
32,127
|
32,127
|
||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
(421,562
|
)
|
-
|
(421,562
|
)
|
||||||||||||||||
BALANCE
- December 31, 2009
|
22,599,974
|
$
|
2,260
|
$
|
553,826
|
$
|
(925,466
|
)
|
$
|
12,379
|
$
|
(357,001
|
)
|
UNIVERSAL
SOLAR TECHNOLOGY INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
||||||||
Year
Ended
|
Year
Ended
|
|||||||
December
31, 2009
|
December
31, 2008
|
|||||||
OPERATING
ACTIVITIES:
|
||||||||
Net
loss
|
$
|
(421,562
|
)
|
$
|
(346,993
|
)
|
||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||
Imputed
interest on loans from related parties
|
133,806
|
36,616
|
||||||
Stock
issued for services
|
3,750
|
9,424
|
||||||
Depreciation
of property and equipment
|
3,446
|
-
|
||||||
Amortization
of land use right
|
11,452
|
-
|
||||||
Changes
in operating assets and liabilities:
|
||||||||
Prepaid
expenses and other current assets
|
(292,457
|
)
|
(26,087
|
)
|
||||
Inventory
|
(42,956
|
)
|
-
|
|||||
Accounts
payable and accrued expenses
|
112,363
|
75,412
|
||||||
NET
CASH USED IN OPERATING ACTIVITIES
|
(492,158
|
)
|
(251,628
|
)
|
||||
INVESTING
ACTIVITIES:
|
||||||||
Deposits
for future deliveries of equipment
|
(312,362
|
)
|
-
|
|||||
Acquisition
of property and equipment
|
(3,298,392
|
)
|
(423,420
|
)
|
||||
NET
CASH USED IN INVESTING ACTIVITIES
|
(3,610,754
|
)
|
(423,420
|
)
|
||||
FINANCING
ACTIVITIES:
|
||||||||
Loans
from related parties
|
4,926,230
|
614,590
|
||||||
Sale
of common stock
|
-
|
241,733
|
||||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
|
4,926,230
|
856,323
|
||||||
EFFECT
OF EXCHANGE RATE CHANGES ON CASH
|
32,704
|
(13,433
|
)
|
|||||
INCREASE
IN CASH
|
856,022
|
167,842
|
||||||
CASH
- BEGINNING OF PERIOD
|
259,025
|
91,183
|
||||||
CASH
- END OF PERIOD
|
$
|
1,115,047
|
$
|
259,025
|
||||
Supplemental
disclosures of cash flow information:
|
||||||||
Interest
paid
|
$
|
-
|
$
|
-
|
||||
Income
taxes paid
|
$
|
-
|
$
|
-
|
Building
construction in progress
|
$
|
1,019,760
|
||
Production
equipment
|
2,219,913
|
|||
Office
equipment
|
11,123
|
|||
Automobile
|
47,596
|
|||
Total
|
3,298,392
|
|||
Less
accumulated depreciation
|
3,446
|
|||
Property
and equipment- net
|
$
|
3,294,946
|
December
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Due
to Company’s chairman and chief executive officer, non-interest
bearing, due on demand (interest imputed at 5%)
|
$
|
2,185,219
|
$
|
698,836
|
||||
Due
to Zhuhai Yuemao Laser Facility Engineering Co., Ltd. (“Yuemao
Laser”) with non interest bearing and due on demand.
|
238,009
|
50,462
|
||||||
Loan
payable to Yuemao Technology Ltd. (“Yuemao Technology’) (See note
7)
|
3,252,300
|
|||||||
Due
to Company’s chairman and chief executive officer pursuant to loan
agreement dated November 2, 2008, interest at 5%, due November 1,
2013
|
22,485
|
22,485
|
||||||
Total
|
5,698,013
|
771,783
|
||||||
Current
portion
|
(5,675,528
|
)
|
(749,298
|
)
|
||||
Non-current
portion
|
$
|
22,485
|
$
|
22,485
|
UNIVERSAL
SOLAR TECHNOLOGY, INC.
|
||||||||
BALANCE
SHEETS
|
||||||||
December
31,
|
||||||||
2009
|
2008
|
|||||||
Assets
|
||||||||
Cash
|
$ | 20,965 | $ | 1,745 | ||||
Deposit
|
- | 22,500 | ||||||
Total
Assets
|
20,965 | 24,245 | ||||||
Liabilities
and Shareholders' Deficiency
|
||||||||
Investment
in and advances to Subsidiaries
|
354,357 | 106,882 | ||||||
Accrued
expenses
|
1,124 | |||||||
Due
to Shareholders
|
22,485 | 22,485 | ||||||
Total
Liabilities
|
377,966 | 129,367 | ||||||
Shareholders'
Deficiency:
|
(357,001 | ) | (105,122 | ) | ||||
Total
Liabilities And Stockholders' Deficiency
|
$ | 20,965 | $ | 24,245 | ||||
UNIVERSAL
SOLAR TECHNOLOGY, INC.
|
||||||||
STATEMENT
OF OPERATIONS
|
||||||||
Year
Ended
December
31, 2009
|
Year
Ended
December
31, 2008
|
|||||||
Loss
from investment in subsidiaries
|
$ | (304,616 | ) | $ | (347,043 | ) | ||
Cost
And Expenses:
|
||||||||
Selling,
General And Administrative Expenses
|
116,946 | - | ||||||
Total
Costs And Expenses
|
116,946 | (347,043 | ) | |||||
Net
Loss
|
$ | (421,562 | ) | $ | (347,043 | ) |
UNIVERSAL
SOLAR TECHNOLOGY, INC.
|
||||||||
STATEMENT
OF CASH FLOWS
|
||||||||
Year
Ended
December
31,
2009
|
Year
Ended
December
31,
2008
|
|||||||
OPERATING
ACTIVITIES:
|
||||||||
Net
Loss
|
$ | (421,562 | ) | $ | (347,043 | ) | ||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||
Loss
from investment in subsidiaries
|
304,616 | 347,043 | ||||||
Stock
based compensation
|
3,750 | |||||||
Changes
in operating assets and liabilities:
|
||||||||
Prepaid
expense and other current assets
|
22,500 | (22,500 | ) | |||||
NET
CASH USED IN OPERATING ACTIVITIES
|
(90,696 | ) | (22,500 | ) | ||||
INVESTING
ACTIVITIES:
|
||||||||
(Investment
in) repayment from subsidiaries
|
109,916 | (240,000 | ) | |||||
NET
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
109,916 | (240,000 | ) | |||||
FINANCING
ACTIVITIES:
|
||||||||
Loan
from shareholder
|
22,485 | |||||||
Sale
of common stock
|
- | 241,733 | ||||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
|
- | 264,218 | ||||||
EFFECT
OF EXCHANGE RATE CHANGES ON CASH
|
- | 27 | ||||||
INCREASE
IN CASH
|
19,220 | 1,745 | ||||||
CASH
- BEGINNING OF YEAR
|
1,745 | - | ||||||
CASH
- END OF YEAR
|
$ | 20,965 | $ | 1,745 |