FINANCIAL INFORMATION STATEMENT
HYPOWER FUEL, INC.
(a development stage company)
CERTIFICATION
I, Douglas Bender, President and CEO of HYPOWER FUEL, INC., hereby certify that the
unaudited consolidated financial statements filed herewith and the attached notes, fairly present, in
all material respects, the financial position as at March 31, 2010 and the results of operations and
cash flows for the year then ended, in conformity with accounting principles generally accepted in
the United States, consistently applied.
Dated this 5
th
day of June, 2010.
"signed"
By: Douglas Bender
Chief Executive Officer
HYPOWER FUEL, INC.
HYPOWER FUEL, INC.
(a development stage company)
CONSOLIDATED BALANCE SHEET
(rounded to the nearest US $000)
AT MARCH 31, 20010
(with comparative figures as at March 31, 2009)
March 31, March 31,
ASSETS
2010
2009
Current Assets
$
$
Bank and cash
14,000
29,000
Accounts receivable
521,000
0
Advances receivable
205,000 1,192,000
Inventory, prepaids and deposits
1,002,000
1,031,000
Total Current Assets
1,742,000
2,252,000
Capital and other assets (net) (note 4)
841,000
252,000
TOTAL ASSETS
2,583,000
2,504,000
LIABILITIES & SHAREHOLDERS' EQUITY $ $
Current Liabilities
Accounts payable
Contracts payable (current portion)
147,000 87,000
3,000 3,000
Total Current Liabilities
150,000 90,000
Long-term Liabilities
Contracts payables (note 5)
3,000 6,000
Convertible notes and advances payable (note 6)
602,000 556,000
Total Liabilities
755,000 652,000
Shareholders' Equity (Deficiency)
Capital stock (note 7)
Additional paid in capital
131,000 131,000
4,180,000 4,180,000
Deficit
(2,483,000) (2,459,000)
Total Shareholders' Equity
1,828,000 1,852,000
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
2,583,000 2,504,000
HYPOWER FUEL, INC.
(a development stage company)
CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT
(rounded to the nearest US $000)
FOR THE YEAR ENDED MARCH 31, 2010
(with comparative figures for the year ended March 31, 2009)
Year ended Year ended
March 31, 2010 March 31, 2009
$ $
REVENUE 690,000 607,000
EXPENSES
Development costs 519,000 799,000
Sales and marketing costs
General and administrative costs
49,000 75,000
46,000 110,000
Amortization
84,000 66,000
Interest costs
16,000 5,000
Total expenses
714,000 1,055,000
Net income (loss) for the year
Deficit at beginning of year
(24,000) (448,000)
2,459,000 2,011,000
DEFICIT AT END OF YEAR
2,483,000 2,459,000
Net Income (Loss) per share for the year $(0.0001); (March 31, 2009 - $(0.0001))
HYPOWER FUEL, INC.
(a development stage company)
CONSOLIDATED STATEMENT OF CASH FLOWS
(rounded to the nearest US $000)
FOR THE YEAR ENDED MARCH 31, 2010
(with comparative figures for the year ended March 31, 2009)
Year ended Year ended
March 31, 2010 March 31, 2009
$ $
Cash Flows from (used in):
Operating Activities
Net income (loss) for the period ( 24,000) (448,000)
Add: amortization which does not involve cash
Changes in working capital which does not involve cash
Net cash used in Operating Activities
84,000
555,000
615,000
66,000
37,000
(265,000)
Financing and Investing Activities
Increase (decrease) in advances/notes payable
Proceeds(purchase) of capital assets (net)
Additional paid in capital
Increase (decrease) in capital stock
43,000
(673,000)
0
0
283,000
(50,000)
0
0
Net cash provided by Financing and Investing Activities
Increase (decrease) in cash during the period/year
Cash at beginning of year
(630,000)
(15,000)
29,000
233,000
(32,000)
61,000
CASH AT END OF PERIOD/YEAR
$ 14,000
$ 29,000
HYPOWER FUEL, INC.
(a development stage company)
CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL STOCK
(rounded to the nearest US $000)
FOR THE YEAR ENDED MARCH 31, 2010
$ Shares
Capital stock transactions:
Common shares issued March 31, 2005 30,000
30,112,700
Reverse split January 2006
-- (30,052,475)
Balances March 31, 2006
30,000
60,225
Issuance of restricted shares for services May 19, 2006 101,000 101,000,000
Conversion of notes payable May 26, 2006
20,000 20,000,000
Balances May 26, 2006
151,000 121,060,225
Forward split October 2006
- 242,120,450
Balances March 31, 2007
151,000 363,180,675
Issuances, net of buybacks March 31, 2008
(20,000) (20,000,000)
Balances March 31, 2009 and March 31, 2010
131,000 343,180,675
HYPOWER FUEL, INC.
(a development stage company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(rounded to the nearest $000)
FOR THE YEAR ENDED MARCH 31, 2010
(with comparative figures for the year ended March 31, 2009)
Note 1 General Organization and Business
The Company was originally incorporated in the State of Utah in 1987 and changed its domicile and
was continued in the State of Delaware in 1998. It is in the development stage and seeks to establish
itself as a preeminent developer and supplier of alternative fuels. These consolidated financial
statements include the accounts of the company and its wholly owned subsidiaries.
Note 2 Summary of Significant Accounting Policies and Practices
(a) Basis of Accounting
These consolidated financial statements have been prepared using generally accepted
accounting principles of the United States of America consistently applied.
(b) Management Certification
These consolidated financial statements herein are certified by the officers of the Company to
present fairly, in all material respects, the financial position, results of operations and cash flows for
the period presented, in conformity with accounting principles generally accepted in the United
States of America, consistently applied.
(c) Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the consolidated financial statements and the reported amounts of
revenue and expenses during the reporting periods. Actual results could differ from those estimates.
(d) Revenue Recognition
The Company intends to recognize revenue when the product or service has been delivered or
performed and invoiced.
(e) Amortization
The Company will amortize capital and other assets over their expected remaining useful
lives.
(f) Income Taxes
The provision for income taxes is the total of the taxes payable and the net change in the
deferred income taxes. Provision is made for deferred income taxes where differences exist between
the periods in which transactions affect current taxable income and the period in which they enter
into the determination of net income in the consolidated financial statements.
Note 3 Going Concern
These consolidated financial statements have been prepared on a going concern basis. The
Company's ability to continue as a going concern is dependent upon the ability of the Company to
generate profitable operations in the future and/or to obtain the necessary financing to meet its
obligations and pay its liabilities arising from normal business operations as and when they come
due.
Note 4 Capital and Other Assets
Capital Assets include all of the physical building, equipment and furnishing assets owned by the
Company. Other Assets consists of certain patents, trademarks, copyrights and other proprietary
information developed by the Company.
Note 5 Contracts Payable
The contracts payable are secured against specific capital assets and bear interest from 0% to 5% per
annum.
Note 6 Convertible Notes and Advances Payable
The convertible notes payable are secured by the Company's inventory and capital assets, bear
interest at rates from 4% to 10% per annum and become due and payable at the discretion of the note
holders on or before April 30, 2005. The notes are convertible into the common stock of the
Company at various rates as agreed upon with the note holders. Advances payable are unsecured
and bear interest at 10% per annum. Some of the interest was waived by the holders during the year.
Note 7 Capital Stock
Authorized 500,000,000 common shares with a par value of $0.001 per share.
10,000,000 preferred shares with a par value of $0.001 per share.
Issued -
343,180,675 (March 31, 2009 343,180,675) common shares.
Note 8 Provision for Income Taxes
No provision for income taxes has been made in these consolidated financial statements due to the
fact that the Company has incurred a loss. At the date of these consolidated financial statements, the
Company has net operating loss carryforwards, totaling approximately $2,483,000, the benefit of
which has not been recorded in these consolidated financial statements.