Clear Skies Solar, Inc

CIK:0001402857|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Revenues
Contract revenue	$ 29,292	$ 3,404,673	$ 1,634,397	$ 5,189,224
Other	408,508	0	408,508	46,097
Total revenues	437,800	3,404,673	2,042,905	5,235,321
Cost of revenues	442,145	3,064,797	1,716,873	4,640,478
Gross margin (loss)	(4,345)	339,876	326,032	594,843
Operating expenses
Selling expenses	346,921	81,111	1,013,252	265,729
General and administrative expenses	653,863	1,368,487	2,448,010	5,639,136
Total operating expenses	1,000,784	1,449,598	3,461,262	5,904,865
Loss from operations	(1,005,129)	(1,109,722)	(3,135,230)	(5,310,022)
Other income (expense)
Interest income	0	0	0	543
Interest expense	(8,371)	(2,629,188)	(31,121)	(2,868,184)
Derivative valuation adjustment	3,135	18,105	3,685	827,491
Loss on extinguishment of debt	0	0	0	(25,756)
Amortization of debt discount expense	0	(154,967)	(986)	(542,069)
Total other income (expense)	(5,236)	(2,766,050)	(28,422)	(2,607,975)
Net loss	(1,010,365)	(3,875,772)	(3,163,652)	(7,917,997)
Net loss attributable to noncontrolling interest	(41,050)	(79,768)	(77,510)	(171,000)
Net loss attributable to Clear Skies Solar, Inc.	$ (969,315)	$ (3,796,004)	$ (3,086,142)	$ (7,746,997)
Net loss per share, basic and diluted	$ 0.00	$ (0.03)	$ (0.02)	$ (0.08)
Weighted average common shares outstanding, basic and diluted	215,676,355	128,920,249	203,924,256	96,423,753

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities
Net loss	$ (3,163,652)	$ (7,917,997)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1,755	0
Stock-based compensation-options	158,644	2,637,608
Stock-based compensation-grants	82,500	0
Amortization of debt discount	986	542,069
Change in fair value of embedded derivative	(3,685)	(469,584)
Stock issued for consultants/legal services	245,457	0
Amortization of deferred financing costs	29,390	0
Noncash charges related to financings	46,690	2,868,184
Changes in operating assets and liabilities:
Decrease in accounts receivable	40,000	82,868
Increase in inventory	(46,265)	0
Increase in costs and estimated earnings in excess of billings	(154,075)	(2,877,030)
Increase in prepaid expenses and deferred financing costs	(61,143)	(48,950)
(Increase) decrease in security deposits	(115,334)	56,817
(Decrease) increase in other assets	7,683	(177,629)
Increase in accounts and accrued expenses payable	1,149,040	4,050,405
Increase in installation warranty liability	0	35,691
Increase in customer advances	1,438,378	0
Increase in billings in excess of costs and estimated earnings	0	17,507
Decrease (increase) in accrued payroll and related taxes	(25,973)	398,260
Net cash used in operating activities	(369,604)	(801,781)
Cash flows from investing activities:
Purchases of equipment	(19,140)	0
Net cash used in investing activities	(19,140)	0
Cash flows from financing activities:
Proceeds from issuance of common stock and warrants	420,000	0
Repayment of notes payable	(11,000)	(22,000)
Proceeds from exercise of a warrant	0	385,000
Proceeds from conversion of convertible notes	0	335,000
Net cash provided by financing activities	409,000	698,000
Net increase (decrease) in cash	20,256	(103,781)
Cash, beginning of period	16,992	132,325
Cash, end of period	37,248	28,544
Supplemental disclosure of non-cash financing and investment activities:
Value of shares of common stock issued to consultants and law firms	245,457	310,000
Interest paid in cash	$ 920	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current Assets
Cash	$ 37,248	$ 16,992
Accounts receivable	0	40,000
Prepaid expenses	83,858	22,715
Inventory	46,265	0
Costs and estimated earnings in excess of billings	154,075	0
Total current assets	321,446	79,707
Property and equipment:
Land	128,449	128,449
Automobile	19,141	0
Property and Equipment Gross	147,590	128,449
Less accumulated depreciation	1,755	0
Property and equipment, net	145,835	128,449
Security deposit	265,334	150,000
Other assets	57,519	67,202
Total assets	790,134	425,358
Current Liabilities
Accounts payable and accrued expenses	2,035,974	889,931
Billing in excess of costs and estimated earnings	42,553	42,553
Customer advances	1,527,234	88,856
Note payable - short-term	0	11,000
Embedded derivative liability	60,990	64,675
Accrued payroll and related taxes	486,501	512,474
Installation warranty liability	166,637	166,637
Estimated loss on uncompleted contracts	109,305	109,305
Total current liabilities	4,429,194	1,885,431
Non-current Liabilities
Note payable - long-term	25,000	25,000
Obligation to issue common stock	0	36,155
Total non-current liabilities	25,000	61,155
Total liabilities	4,454,194	1,946,586
Commitments and Contingencies
Stockholders' (deficit) equity
Preferred stock, $.001 par value, 10,000,000 shares authorized, zero shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively	0	0
Common stock, $.001 par value, 300,000,000 shares authorized, 218,142,170 and 178,920,327 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively	218,142	178,920
Additional paid-in capital	28,141,262	27,160,662
Accumulated deficit	(31,866,632)	(28,777,476)
Clear Skies Solar, Inc. deficiency	(3,507,228)	(1,437,894)
Noncontrolling interest deficiency	(156,832)	(83,334)
Total stockholders' (deficit) equity	(3,664,060)	(1,521,228)
Total liabilities and stockholders' (deficit) equity	$ 790,134	$ 425,358