KL Energy Corp

CIK:0001403548|SEC Filings

Net Loss Per Common Share

9 Months Ended

Sep. 30, 2011

Note 7 – Net Loss Per Common Share

Basic EPS includes no dilution and is computed by dividing income or (loss) applicable to common stock by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution of securities that could share in the earnings of an entity, similar to fully diluted EPS. For the three and nine months ended September 30, 2011, the potential effects of any dilutive securities were excluded from the calculation of diluted income (loss) per share because their inclusion would have been anti-dilutive.

The following table represents the potential dilution of the Company’s common stock at September 30, 2011:

Common shares issued and outstanding			50,908,240
Linked convertible debt shares			188,472,020
Outstanding stock options and warrants			245,948
Total potential diluted shares			239,626,208

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
Consolidated Statements of Cash Flows (USD $)	Sep. 30, 2011	Sep. 30, 2010
Cash Flows From Operating Activities
Net income (loss )	$ (24,507,386)	$ (6,471,483)
Adjustments to reconcile net loss by cash used in operating activities:
Depreciation	908,077	1,381,474
Loss (gain) an sale of assets	39,346	(419)
Stock based compensation expense	31,221	160,727
Issuance of stock for licensing rights		1,650,000
Debt extinguishment loss	21,735,133
Gain on fair value of debt instruments	(981,517)
Derivative income	(2,050,936)
Amortization of debt discount	469,995	293,705
Amortization of debt issuance cost		1,875
(Increase) decrease in:
Restricted cash	1,345,442
Receivables	(2,488)	(43,109)
Inventories	146,317	(40,125)
Prepaid expenses and other assets	99,068	9,274
Increase (decrease) in:
Accounts payable and payables to related parties	984,625	(42,165)
Billings in excess of costs and estimated earnings on uncompleted contracts	196,594
Deferred income	(1,742,178)	1,537,900
Accrued payroll and other liabilities	(142,698)	(367,943)
Net Cash Provided by (Used In) Operating Activities	(3,471,385)	(1,930,289)
Cash Flows From Investing Activities
Purchases of property, plant and equipment	(1,556,498)	(234,363)
Proceeds from the sale of fixed assets	26,426	600
Net Cash Provided by (Used in) Investing Activities	(1,530,072)	(233,763)
Cash Flows From Financing Activities
Proceeds (payments) from long-term debt	(185,936)	(332,348)
Payments on subordinated debt - related parties, net	(80,000)	(93,538)
Payments on long-term debt principal
Proceeds from convertible debt	2,950,000	1,500,000
Debt issuance costs		(75,000)
Interest payments on convertible debt	(219,907)
Legal, professional and placement fees		(335,000)
Proceeds from issuance of common stock		3,350,000
Net Cash Provided by (Used in) Financing Activities	2,464,157	4,014,114
Net Increase (Decrease) in Cash and Cash Equivalents	(2,537,300)	1,850,062
Cash and cash equivalents at beginning of period	3,507,676	65,049
Cash and cash equivalents at end of period	970,376	1,915,111
Supplemental Disclosures of Cash Flow Information
Interest paid	54,610	85,803
Insurance premium financed with debt	116,000	80,000
Debt discount		1,495,000
Replacement Convertible Notes
Supplemental Disclosures of Cash Flow Information
Beneficial conversion feature of convertible notes	6,243,582
New Convertible Notes
Supplemental Disclosures of Cash Flow Information
Beneficial conversion feature of convertible notes	2,750,000
Promissory Notes
Supplemental Disclosures of Cash Flow Information
Debt extinguishment	4,189,037
Warrant
Supplemental Disclosures of Cash Flow Information
Debt extinguishment	$ 5,041,339

Consolidated Balance Sheets (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current Assets
Cash and cash equivalents	$ 970,376	$ 3,507,676
Restricted cash		1,345,442
Trade receivables, net of allowance for doubtful accounts of $289,840 and $393,840, respectively	2,488
Inventories	153,277	299,594
Prepaid expenses and other assets	301,094	284,161
Total Current Assets	1,427,235	5,436,873
Non-Current Assets
Property, Plant and Equipment, Net	3,212,561	2,924,109
Asset held for sale	294,193
Total Non-Current Assets	3,506,754	2,924,109
Total Assets	4,933,989	8,360,982
Current Liabilities
Convertible promissory notes payable	469,995	11,434,043
Current maturities of long-term debt	1,211,284	1,285,940
Current maturities of subordinated debt-related party	346,589	426,589
Accounts payable	1,993,387	1,792,830
Payables to related parties	731,120	52,053
Billings in excess of costs and estimated earnings on uncompleted contracts	396,594	200,000
Accrued payroll	70,338	76,995
Other liabilities	531,481	667,524
Deferred revenue	93,000	1,835,178
Current liabilities of discontinued operations	421,431	316,431
Total Current Liabilities	6,265,219	18,087,583
Warrant derivative liability		7,092,275
Long-term debt, less current maturities	16,992	12,272
Total Long-Term Debt	16,992	7,104,547
Total Liabilities	6,282,211	25,192,130
Stockholders' Deficit
Preferred stock, $0.001 par value; 20,000,000 authorized; none issued
Common stock, $0.001 par value; 380,000,000 shares authorized; 50,908,240 and 50,893,309 shares issued and outstanding as of September 30, 2011 and December 31, 2010, respectively	50,908	50,893
Additional paid-in capital	54,337,371	14,347,074
Accumulated deficit	(52,950,243)	(29,091,651)
Deficit attributable to KL Energy Corporation	1,438,036	(14,693,684)
Noncontrolling interest	(2,786,258)	(2,137,464)
Total Stockholders' Deficit	(1,348,222)	(16,831,148)
Total Liabilities and Stockholders' Deficit	$ 4,933,989	$ 8,360,982