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Note 7 - Regulatory Commitment
6 Months Ended
Jun. 30, 2013
Notes  
Note 7 - Regulatory Commitment

 NOTE 7 – REGULATORY COMMITMENT

 

On February 6, 2012, an application for an amendment to our Retail Electric Provider Certification was submitted to PUCT which sought prior approval of a transaction by and between us and Castwell.  The application for amendment was requested to reflect a change in ownership in contemplation of a merger with Castwell.  On February 27, 2012, the application to amend our Retail Electric Provider Certification was approved.

 

We are required to maintain stockholders’ equity, determined in accordance with generally accepted accounting principles in the United States, of not less than one million dollars for the purpose of obtaining certification and we or our guarantor must provide and maintain an irrevocable stand-by letter of credit with a face value of $500,000 for the purpose of maintaining certification.  We will remain subject to these minimum capital standards until February 2014.  We are in compliance with this requirement as of June 30, 2013, and while we believe in the viability of our plan of operations and strategy to generate revenues and in our ability to raise additional funds, there can be no assurances that our plan of operations or ability to raise capital will be successful.