PwrCor, Inc. - Form 10-Q SEC filing

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission File Number: 001-09370

PwrCor, Inc.

(Exact Name of Registrant as Specified in the Charter)

Delaware		13-3186327
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

60 E. 42nd Street, Suite 4600
New York, NY		10165
(Address of Principal Executive Offices)		(Zip Code)

(212) 796-4097

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act): Yes ☐ No ☒

As of November 12, 2021, there were 210,342,722 shares of the registrant’s common stock outstanding.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION	3
Item 1. Financial Statements	3
Balance Sheets As Of September 30, 2021 (Unaudited) and December 31, 2020	4
Statement of Operations for the Three and Nine Months ended September 30, 2021 and 2020 (Unaudited)	5
Statement of Stockholders’ Equity (Deficit) for the Three and Nine Months Ended September 30, 2021 and 2020 (Unaudited)	6
Statement of Cash Flows for the Nine Months Ended September 30, 2021 and 2020 (Unaudited)	7
Notes to Financial Statements (Unaudited)	8
Item 2. Management’s Discussion & Analysis of Financial Condition and Results of Operations.	15
Item 3. Quantitative and Qualitative Disclosures about Market Risk.	17
Item 4. Controls and Procedures.	17
PART II. OTHER INFORMATION	19
Item 1. Legal Proceedings	19
Item 1A. Risk Factors.	19
Item 2. Unregistered Sale of Equity Securities and Use of Proceeds	19
Item 3. Defaults Upon Senior Securities	19
Item 4. Mine Safety Disclosure	19
Item 5. Other Information	19
Item 6. Exhibits	19
SIGNATURES	20

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PwrCor, Inc.

Financial Statements

For the Nine Months Ended

September 30, 2021

PwrCor, Inc.

Balance Sheets

	September 30, 2021		December 31, 2020
	(unaudited)
ASSETS
Cash	$	89,861	$	49,729
Accounts receivable, net of allowance for doubtful accounts		24,536		43,602
Prepaid expenses and deposits		30,093		30,354
Total Current Assets		144,490		123,685

Intangible asset - license agreement		84,375		94,500

Fixed asset - engines, net of accumulated depreciation		3,780		6,447

Total Assets	$	232,645	$	224,632


LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Accounts payable and accrued expenses	$	601,731	$	623,242
Current portion of long-term loan		356		-
Total Current Liabilities		602,087		623,242

Long-term Loan		199,644		78,200
Accrued interest		4,209		-
Total Long Term Liabilities		203,853		78,200

Total Liabilities		805,940		701,442

Common stock, $0.001 par value: 325,000,000 shares authorized; 210,342,722 shares issued and outstanding at both September 30, 2021 and December 31, 2020		210,342		210,342
Additional paid-in capital		1,310,910		1,310,910
Retained earnings (deficit)		(2,094,547)		(1,998,062)
Total Stockholders’ Equity (Deficit)		(573,295)		(476,810)

Total Liabilities and Stockholders’ Equity (Deficit)	$	232,645	$	224,632

See notes to financial statements

PwrCor, Inc.

Statement of Operations

(Unaudited)

	Three Months Ended September 30				Nine Months Ended September 30
	2021		2020		2021		2020

REVENUE
Project Management	$	7,244	$	33,050	$	33,744	$	188,390

Total Revenue		7,244		33,050		33,744		188,390


EXPENSES
Consulting fees		5,589		31,378		18,284		131,426
Engine Development & Production		889		-		2,667		23,928
General and Administrative		16,572		15,759		48,144		50,966
Legal and other professional fees		12,177		11,115		61,134		73,920

Total Expenses		35,227		58,252		130,229		280,241

Net (Loss)	$	(27,983)	$	(25,202)	$	(96,485)	$	(91,851)

Net (Loss) per Common Share	$	(0.00)	$	(0.00)	$	(0.00)	$	(0.00)

Weighted Average Common Shares Outstanding		210,342,722		210,342,722		210,342,722		210,342,722

See notes to financial statements

PwrCor, Inc.

Statement of Stockholders’ Equity (Deficit)

For the Three and Nine Months Ended September 30, 2021 and 2020

(Unaudited)

For the Three and Nine Months Ended September 30, 2021

	Common Stock
	Number of Shares	Amount		Additional Paid-in Capital		Retained Earnings (Deficit)		Total Stockholders’ Equity (Deficit)

Balance, December 31, 2020	210,342,722	$	210,342	$	1,310,910	$	(1,998,062)	$	(476,810)

Net (Loss)	-		-		-		(45,779)		(45,779)
Balance, March 31, 2021	210,342,722	$	210,342	$	1,310,910	$	(2,043,841)	$	(522,589)

Net (Loss)	-		-		-		(22,723)		(22,723)
Balance, June 30, 2021	210,342,722	$	210,342	$	1,310,910	$	(2,066,564)	$	(545,312)

Net (Loss)	-		-		-		(27,983)		(27,983)
Balance, September 30, 2021	210,342,722	$	210,342	$	1,310,910	$	(2,094,547)	$	(573,295)

For the Three and Nine Months Ended September 30, 2020

	Common Stock
	Number of Shares	Amount		Additional Paid-in Capital		Retained Earnings (Deficit)		Total Stockholders’ Equity (Deficit)

Balance, December 31, 2019	210,342,722	$	210,342	$	1,310,910	$	(1,886,006)	$	(364,754)

Net (Loss)	-		-		-		(25,906)		(25,906)
Balance, March 31, 2020	210,342,722	$	210,342	$	1,310,910	$	(1,911,912)	$	(390,660)

Net (Loss)	-		-		-		(40,743)		(40,743)
Balance, June 30, 2020	210,342,722	$	210,342	$	1,310,910	$	(1,952,655)	$	(431,403)

Net (Loss)	-		-		-		(25,202)		(25,202)
Balance, September 30, 2020	210,342,722	$	210,342	$	1,310,910	$	(1,977,857)	$	(456,605)

See notes to financial statements

PwrCor, Inc.

Statement of Cash Flows

(Unaudited)

	Nine Months Ended September 30,
	2021		2020

NET (LOSS)	$	(96,485)	$	(91,851)
Adjustments to reconcile net (loss) to net cash (used) by operating activities
Depreciation and amortization		12,792		13,850
Changes in Assets and Liabilities
Decrease (increase) in accounts receivable		19,066		100,955
Decrease (increase) in prepaid expenses and deposits		261		(4,385)
Increase (decrease) in accounts payable and accrued expenses		(17,302)		(149,618)
Total Adjustments		14,817		(39,198)

Net Cash (Used) by Operating Activities		(81,668)		(131,049)

CASH FLOWS FROM FINANCING ACTIVITIES
Borrowing of Long Term Debt		121,800		78,100
Net Cash Provided by Financing Activities		121,800		78,100

Net (decrease) in cash		40,132		(52,949)

Cash, beginning of period		49,729		126,632

Cash, end of period	$	89,861	$	73,683

See notes to financial statements

PwrCor, Inc.

Notes to Financial Statements

September 30, 2021

(Unaudited)

1. Organization and Nature of Business

PwrCor, Inc. (the “Company” or “PwrCor”) was until the first quarter of 2017 named Receivable Acquisition & Management Corporation (“RAMCO”) and doing business as Cornerstone Sustainable Energy. RAMCO, a public reporting entity, was in the business to purchase, manage and collect defaulted consumer receivables.

Cornerstone Program Advisors LLC (“Cornerstone”), a Delaware limited liability company, is an energy infrastructure project management company focused on healthcare and higher learning institutions. Sustainable Energy Industries, Inc. (“Sustainable”) is a New York corporation involved in developing and improving the efficiency of energy infrastructure using advanced proprietary technologies. As a result of a reverse merger acquisition (the “Merger”) between RAMCO, Cornerstone, and Sustainable during 2013, the Company adopted a business plan to build on the business of Cornerstone and Sustainable in energy infrastructure and alternative energy.

In January 2017, the Company’s shareholders approved a name change to PwrCor, Inc., which became effective on March 3, 2017.

2. Significant Accounting Policies

Basis of Presentation and Use of Estimates

The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates required from time to time to be made by management include valuation of shares issued for services, recognition of revenue for work completed and unbilled to customers, the allowance for doubtful accounts, and the valuation of License Agreements. Actual results could differ from those estimates.

Financial Condition of the Company

In view of the disruptions to the economy resulting from the worldwide virus pandemic, the Company’s ongoing business activities have been and may continue to be curtailed for an indefinite period. In consequence, there can be no assurance that funds generated from operations, together with existing cash and cash infusions by stockholders and any other potential financing sources, will be sufficient to finance the Company’s operations for the next twelve months. The Company did not qualify for temporary payroll assistance because it has no salaried employees, but did obtain a COVID-related loan from the Small Business Administration in September, 2020, and an addition to that loan in July, 2021. The Company is actively seeking additional capital to cover its working capital needs and to fund growth initiatives in its identified markets, and has engaged the services of an investment bank to assist in this and in actively introducing the Company’s engine technology to businesses in a set of identified key markets to accelerate the commercialization of the Company’s latest generation product. However, there can be no assurance that any new debt or equity financing arrangement will be available to the Company when needed on acceptable terms, if at all. The continued operations of the Company are dependent on its ability to raise funds, collect accounts receivable, and earn revenues. No adjustments have been made to the financial statements as a result of this uncertainty. The accompanying financial statements have been prepared assuming the Company will continue as a going concern.

PwrCor, Inc.

Notes to Financial Statements

September 30, 2021

(Unaudited)

2. Significant Accounting Policies (continued)

Unaudited Financial Statements

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. The unaudited financial statements should be read in conjunction with those financial statements included in the Company’s Form 10-K for the year ended December 31, 2020. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three and nine months ended September 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.

Cash

The Company continually monitors its positions with, and the credit quality of, the financial institutions it invests with. From time to time, however briefly, the Company maintains balances in operating accounts in excess of federally insured limits.

Accounts Receivable

Receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. At both September 30, 2021, and December 31, 2020, an allowance for doubtful accounts was made totaling $52,105 to provide for the possibility of a revenue shortfall from the project in Modoc County, and is reflected in the accounts receivable balance on the balance sheet in the accompanying financial statements.

Revenue Recognition

Revenues are recognized when the Company satisfies a performance obligation by transferring goods or services promised in a contract to a customer, in an amount that reflects the consideration to be received in exchange for those goods or services.

Revenue from contract customers is recognized by: (1) identifying the contract with the customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to separate performance obligations; and (5) recognizing revenues when (or as) each performance obligation is satisfied.

The Company’s revenue is currently from services transferred to customers at a point in time. These revenues are generated by providing consulting services to customers under a contractual arrangement. They are (a) time and expense arrangements, under which the customer pays the Company, typically as billed in a monthly invoice, based on hours incurred and contracted rates; (b) performed activities arrangements, under which the customer pays the Company for particular tasks performed (typically tasks which can be valued, but for which time spent is highly variable or unpredictable), based on contracted rates; or (c) reimbursements by the customer for certain identified expenses, such as travel, out-of-pocket, or advances on behalf of the customer.

The Company recognizes revenue for (a) and (b) at the point in time in which the customer is provided the service and is invoiced for that period. Amounts under (c) are generally included in revenues in the period invoiced, and an equivalent amount of reimbursable expenses is included in costs of services in the period in which the expense is incurred.

PwrCor, Inc.

Notes to Financial Statements

September 30, 2021

(Unaudited)

2. Significant Accounting Policies (continued)

Revenue Recognition, continued

The Company’s performance obligations under its engine business are generally satisfied as “over time”. There was no revenue from products or services transferred to a customer over time for the three and nine months ended September 30, 2021 and 2020, respectively. Revenue under this type of contract is generally recognized over time using an input measure based upon the proportion of actual costs incurred to estimated total project costs, which is a method used to best depict the Company’s performance to date under the terms of the contract.

Progress payments, which when involved are invoiced, are typically characteristic of such contracts, but do not affect revenue recognition. In this regard and in other instances, the timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in contract assets or contract liabilities (deferred revenue) on the Company’s balance sheet. The Company records a contract asset when revenue is recognized prior to invoicing, or contract liabilities when revenue is recognized subsequent to invoicing.

The Company had unbilled receivables (contract assets) of $0 and an estimated $14,590 at September 30, 2021 and December 31, 2020, respectively. There were no costs in excess of billings and billings in excess of costs associated with “over time” contracts at September 30, 2021 or December 31, 2020. There was no revenue recognized during the periods ended September 30, 2021 and 2020 that was included in contract liabilities at the beginning of the period.

In much of the Company’s business, customers request changes in contract specifications or in the scope or amount of services to be delivered. These are typically covered under the contract with the customer.

On September 30, 2021, the Company had no remaining performance obligations.

Fixed Assets

Fixed assets are being depreciated on the straight line basis over a period of five years.

Income Taxes

The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by the tax authorities. Management has analyzed the Company’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2017 - 2019). The Company’s tax year ends September 30.

Basic and Diluted Net Income (Loss) per Share

The Company computes income (loss) per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted income (loss) per share on the face of the statement of operations. Basic income (loss) per share is computed by dividing net income available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income (loss) per share excludes all potential common shares if their effect is anti-dilutive.

For the three and nine month periods ended September 30, 2021 and 2020, basic (loss) and diluted (loss) per share were the same. The 4,575,000 warrants outstanding at September 30, 2021 are anti-dilutive as the trading price of the Company’s common stock was below the exercise price of the warrants.

PwrCor, Inc.

Notes to Financial Statements

September 30, 2021

(Unaudited)

2. Significant Accounting Policies (continued)

Recent Accounting Pronouncements

All accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

Subsequent Events

Management regularly evaluates subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued.

3. Related Party Transactions

Consulting Fees

Certain stockholders of the Company and entities affiliated with management perform services for customers and were compensated at various rates. Total consulting expenses incurred by these stockholders and entities amounted to $0 for the three and nine month periods ended September 30, 2021, and $4,938 and $80,458 for the three and nine month periods, respectively, ended September 30, 2020. Amounts payable to these stockholders and entities at September 30, 2021 and December 31, 2020 totaled $8,611 and $9,460, respectively.

Intangible Asset Valuation

The Company performs a qualitative assessment of its intangible assets to determine whether the existence of events and circumstances leads to a determination that it is more likely than not that the fair value of its one such asset is less than its carrying amount. As a result of management’s qualitative assessment, the Company determined that the carrying value of its license agreement warranted no loss or impairment as of September 30, 2021.

License Agreements

In December, 2017, the Company entered into an intellectual property license agreement (the “Patent License”) with Thermal Tech Holdings, LLC, a Delaware limited liability company (“TTH”). TTH is an entity owned equally by two entities affiliated, respectively, with two officers and directors of the Company, who also serve in management positions with TTH.

TTH is the owner of certain patent applications as well as the inventions relating to the Company’s proprietary engine technology (the “Licensed Patents and Technical Information”). The Licensed Patents and Technical Information were developed by an independent non-profit research institute (the “Contractor”). All work done by the Contractor was paid for by TTH in order that TTH, rather than the Company, would be at risk if the research, development, engineering and design work were of little or no value. Furthermore, the work performed by the Contractor for TTH was confidential for competitive business reasons.

The Patent License grants the Company a worldwide non-exclusive license to use the Licensed Patents and Technical Information to make, use or sell any products and/or services which would be covered by these specific Licensed Patents. However, TTH may not license any Licensed Patents and Technical Information to any competitive entity, or to any other entity without the prior written consent of the Company.

PwrCor, Inc.

Notes to Financial Statements

September 30, 2021

(Unaudited)

3. Related Party Transactions (continued)

License Agreements (continued)

The agreement calls for the Company to pay TTH a royalty equal to five percent (5%) of the Net Revenue (as defined) of all Licensed Products covered by a Licensed Patent sold by the Company and its affiliates, as well as an initial license fee of $135,000 which was paid. The Patent License will terminate upon the expiration of all Licensed Patents. The Company may terminate the agreement on ninety (90) days’ prior written notice. TTH may terminate the agreement on ninety (90) days’ prior written notice for uncured defaults (as defined).

The accompanying September 30, 2021 balance sheet presents the carrying value of the license fee at $84,375, which is net of $50,625 in accumulated amortization. The cost of the license agreement is being amortized on a straight-line basis over ten years.

The Company periodically performs an analysis of its contractual rights and arrangements and establishes asset value based on that analysis.

Technology Development Fees

Under a technology development agreement the Company has with TTH, the Company reimburses TTH for managing the work by a contracted third party on various technology developments as agreed to on a case-by-case basis. The amounts payable under this arrangement amounted to $243,112 at both September 30, 2021 and December 31, 2020. The Company obtains full rights to any intellectual property it develops or acquires through such payments.

4. Concentrations

The Company grants credit in the normal course of business to its customers. The Company periodically performs credit analysis and monitors the financial condition of its customers to reduce credit risk.

One customer accounted for 100% of total project management revenue during the three and nine month periods ended September 30, 2021, and September 30, 2020.

One customer accounted for 100% of total project management net accounts receivable at September 30, 2021 and December 31, 2020.

Two customers accounted for approximately 73% and 27% of total net accounts receivable at September 30, 2021, and two customers accounted for 59% and 41%, respectively, at December 31, 2020.

5. Stock Issuance

In August, September and October, 2018, the Company issued an aggregate of 2,500,000 shares of common stock at a per share price of $0.14 to three investors in return for a capital infusion of $350,000. Each share issued was accompanied by a warrant for one-half share of common stock; the warrants are exercisable at a price of $0.40 per share. A total of 1,250,000 warrants accompanied these shares.

PwrCor, Inc.

Notes to Financial Statements

September 30, 2021

(Unaudited)

5. Stock Issuance (continued)

In September and October 2017, the Company issued an aggregate of 6,650,000 shares of common stock at a per share price of $0.10 to thirteen individual investors in return for a capital infusion of $665,000. Each share issued was accompanied by a warrant for one-half share of common stock; the warrants are exercisable at a price of $0.30 per share. A total of 3,325,000 warrants accompanied these shares.

At September 30, 2021, the Company had 4,575,000 warrants outstanding. Of these, 3,325,000 warrants were exercisable at $0.30 per share but may be redeemed by the Company if not exercised, in whole or in part, on at least twenty days’ prior written notice, at a price of $.001 per share; provided the average closing bid price of the Common Stock is at or above $1.00 per share for at least twenty consecutive trading days ending within three business days prior to the redemption notice. An additional 1,250,000 warrants are exercisable at $0.40 per share but may be redeemed by the Company if not exercised, in whole or in part, on at least twenty days’ prior written notice, at a price of $.001 per share; provided the average closing bid price of the Common Stock is at or above $1.50 per share for at least twenty consecutive trading days ending within three business days prior to the redemption notice.

Both warrant issues expire in April, 2022, as extended.

The Company claims exemptions from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D promulgated thereunder. No commissions were paid and no underwriter or placement agent was involved in these transactions. The proceeds of these transactions were used for the Company’s working capital and general corporate purposes.

6. Long Term Notes

On September 15, 2020, the Company received an Economic Injury Disaster Loan (“EIDL” or the “Loan”) from the Small Business Administration (“SBA”), in the amount of $78,200. After a processing fee, net proceeds were $78,100 under the terms. Following the close of the second quarter of 2021, the Company received approval for an extension of the loan. The additional loan amount was $121,900, bringing the total loan to $200,000. The net additional proceeds were $121,800. As a loan extension, terms and maturity are essentially unchanged.

The Loan, which is in the form of a promissory note initially dated September 10, 2020, matures on September 10, 2050, and bears interest at a rate of 3.75% per annum. Payments are to be made monthly, beginning as of September 10, 2022. The loan terms provide for a collateral interest for the SBA, and limits the use of proceeds to working capital to alleviate the effects of Covid-19 on the Company’s economic condition. Interest and principal payments begin in September of 2022.

The Loan consists of the following:

	September 30, 2021	December 31, 2020
	(Unaudited)
U.S. SBA term note payable in equal monthly installments, bearing an interest rate of 3.75% and maturing in September 2050.	$ 200,000	$ 78,200
Less current portion	(356)	(-)
Long-term debt, excluding current portion	$ 199,644	$ 78,200

PwrCor, Inc.

Notes to Financial Statements

September 30, 2021

(Unaudited)

6. Long Term Notes (continued)

Unlike the Paycheck Protection Program (“PPP”), established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) enacted March 27, 2020, the EIDL program does not currently provide a mechanism for loan forgiveness.

The Loan is projected to amortize as follows:	Payments against Principal

2021	$	-
2022	$	1,356
2023	$	4,170
2024	$	4,329
2025	$	4,494

Remaining principal to be paid 2026 to 2050:	$	185,651

Total	$	200,000

Item 2. Management’s Discussion & Analysis of Financial Condition and Results of Operations.

The following management’s discussion and analysis should be read in conjunction with the Company’s historical consolidated financial statements and the related notes thereto included in our audited financial statements for the year ended December 31, 2020, and the notes thereto. The management’s discussion and analysis contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words “believe,” “plan,” “intend,” “anticipate,” “target,” “estimate,” “expect” and the like, and/or future tense or conditional constructions (“will,” “may,” “could,” “should,” etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements in this quarterly report. The Company’s actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this quarterly report.

Overview

On May 15, 2013, Receivable Acquisition & Management Corporation, a Delaware corporation, completed the acquisition of Cornerstone Program Advisors LLC, a Delaware limited liability company (“Cornerstone”) and Sustainable Energy Industries, Inc., a Delaware corporation (“Sustainable”), and the Company assumed the operations of each of these entities (the “Merger”). Receivable Acquisition & Management Corporation had operated as a business purchasing and collecting upon defaulted consumer receivables; those operations were ceased and collections on any remaining receivables are being run off. Cornerstone has been in the business of managing energy infrastructure projects, specializing in the non-profit marketplace. Sustainable is in the business of developing, marketing, and implementing clean tech technologies. The Company has refocused on managing energy infrastructure projects and developing applications for an environmentally benign heat conversion technology with particular focus on the geothermal and waste-heat-to-energy production markets.

Shareholders approved a name change to PwrCor, Inc. at the shareholder meeting in January, 2017, by a large majority of shareholder votes. The corporate name change in Delaware to “PwrCor, Inc.” was effective on March 3, 2017.

Results of Operations

During the three and nine period ended September 30, 2021, the Company had a net loss of ($27,983) and ($96,485), respectively, on revenues of $7,244 and $33,744, respectively, versus a net loss of ($25,202) and ($91,851), respectively, on revenues of $33,050 and $188,390, respectively, in the three and nine month period ended September 30, 2020. The comparable net loss in the most recent three month period in 2021 as compared to the corresponding period last year, despite significantly lower revenues was due primarily to consulting fee payment reductions in tandem with lower consulting receipts, due primarily to a reduction in business activity as a direct result of the impact of Covid-19 on the operations of our project management customers, which is currently one hospital.

Revenue

Revenues for the three months ended September 30, 2021 as compared to the same period in 2020 from the Company’s major customer showed a 82% decrease due to reduced activity with the customer. The margin of project management revenue over the corresponding cost of subcontracted consultants for such projects has increased from 2020 to 2021 due to a changing mix of customer and consultant activity. This gross profit for the nine month period ended September 30, 2021, was 46% of revenues, versus 30% for the corresponding period in 2020.

Revenue declined 78% for the three month period and 82% for the nine month period ended September 30, 2021, as compared to the corresponding periods from 2020. The decline was largely attributable to lingering effects of the Covid-19 virus on business activity.

Operating Expenses

Total operating expenses for the three and nine month periods ended September 30, 2021 were $35,227 and $130,229 respectively, versus $58,252 and $280,241 respectively, during the three and nine month periods ended September 30, 2020. Both periods saw most expenses decline in 2021 in tandem with reduced business activity.

Consulting Expenses

The Company outsources a significant portion of its project management, oversight and advisory activities to a carefully selected group of small firms, individuals and subcontractors with expertise specific to the projects underway. As of the quarter ended September 30, 2021, the Company was using two such consulting resources. Consulting expenses consistently constitute the bulk of operating costs for the project advisory and management business activities of the Company, and accordingly generally track revenue.

Liquidity and Capital Resources

As of September 30, 2021, the Company had a working capital deficit (that is, total current assets minus total current liabilities) of ($457,597) versus a working capital deficit of ($499,557) as of the year ended December 31, 2020. The working capital deficit decrease was due primarily to a capital infusion in the form of a loan from the Small Business Administration (SBA).

For the period ended September 30, 2021, the Company had cash of $89,861 versus $49,729 at December 31, 2020. For the nine months ended September 30, 2021, net cash (used) by operating activities was ($81,668) versus net cash (used) by operating activities of ($131,049) for the nine months ended September 30, 2020. The major factor in the change in net cash from operating activities was the proceeds from the aforementioned SBA loan.

For the three month period ended September 30, 2021, financing activities provided $121,800 in cash, and for the period ended September 30, 2020, financing activities provided $78,100 in cash. No cash was used in investing activities in either period.

The worldwide emergence of a novel and in some cases fatal coronavirus has caused major disruptions to daily life domestically and around the world. Most important to the Company, these developments are causing significant changes in a wide array of business activities and disruptions in capital markets. Regarding the first, the Company has been engaged in projects at hospitals primarily in the New York City, which for a period of time were dealing with unprecedented losses to their normal business and less than forecast demand for virus-related treatments. Dealing with these major disruptions to their normal activities, there can be no assurance that these hospitals will resume the Company’s activity in the near term, and if so at what level of activity. Regarding the second, the dramatic swings in financial markets and the related uncertainties are likely to challenge efforts to obtain additional capital.

Given these major uncertainties, the Company cannot reliably project its results from its project management operations for at least the next six months, so it is uncertain whether any such revenue, together with existing cash and possible cash infusions by major stockholders, will be sufficient to finance its operations for the next twelve months.

In the quarter ended September 30, 2020, the Company applied for and received temporary federal assistance in the form of an economic injury disaster loan, known as EIDL. The Company received loan proceeds in the amount of $78,100 on September 15, 2020. On July 8, 2021, the Company received an augmentation of the assistance loan, bringing the total after fees to an aggregate of $199,900. The Company intends to use the entire loan amount for qualifying expenses. Management believes, based on the Company’s operations and its existing working capital resources, together with existing cash flows and the slow resumption of business activity in general, that the Company has sufficient cash flows to fund operations at least through the end of 2021.

The Company has engaged the services of an investment bank and is actively seeking additional capital to cover any working capital needs and to fund growth initiatives in its identified markets. However, progress with those initiatives linked closely to the oil and gas markets may continue to lag due to continued financial uncertainty in those markets. There can be no assurance that any new debt or equity financing arrangement will be available to the Company when needed on acceptable terms, if at all. The initiative is also in the process of actively introducing the Company’s engine technology to businesses in a set of identified key markets to accelerate the commercialization of the Company’s latest generation product. These efforts also have no assurance, particularly in an environment where businesses are being disrupted, of achieving their objectives at sufficient scale to achieve desirable levels of cash flow. The continued operations of the Company are largely dependent on its ability to collect its receivables and increase revenues.

Income Taxes

The Company did not record any income tax provision for the nine month period ended September 30, 2021, and does not expect any material income tax liability for the period. There were approximately $1,800 in minimum taxes paid in the nine months ended September 30, 2021, most covering earlier periods.

Critical Accounting Policy & Estimates

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations section discusses our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period.

On an ongoing basis, management evaluates its estimates and judgments, including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.

Actual results may differ from these estimates under different assumptions and conditions. The most significant accounting estimates inherent in the preparation of our financial statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources. These accounting policies are described at relevant sections in this discussion and analysis and in the condensed consolidated financial statements included in this quarterly report.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

The Issuer is not required to provide the information called for in this item due to its status as a Smaller Reporting Company.

Item 4. Controls and Procedures.

Evaluation of disclosure controls and procedures

The term “disclosure controls and procedures” is defined in Rules 13(a)-15e and 15(d) - 15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s principal executive officer and principal financial officer has evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2021. He has concluded that, as of September 30, 2021, our disclosures, controls and procedures were effective to ensure that:

(1)Information required to be disclosed by the Company in reports that it files or submits under the act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms; and

(2)Controls and procedures are designed by the Company to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management including the principal executive and principal financial officers or persons performing similar functions, as appropriate to allow timely decisions regarding financial disclosure.

This term refers to the controls and procedures of a Company that are designed to ensure that information required to be disclosed by a Company in the reports that it files under the Exchange Act is recorded, processed, summarized and reported within the required time periods. Management continues to take steps to improve its controls and procedures, and expects, further, that the growing scale of the business will enable the Company to obtain additional resources to assist in that effort.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting or in any other factors that could significantly affect these controls during the quarter ended September 30, 2021, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not a party to any material pending legal proceedings or a proceeding being contemplated by a governmental authority nor is any of the Company’s property the subject of any pending legal proceedings or a proceeding being contemplated by a governmental authority except as set forth in our Annual Report on Form 10-K for December 31, 2020 from which there have been no material changes.

Item 1A. Risk Factors.

None.

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosure

Not Applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number		Exhibit Title
31.1		Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS *		XBRL Instance Document
101.SCH *		XBRL Taxonomy Schema
101.CAL *		XBRL Taxonomy Calculation Linkbase
101.DEF *		XBRL Taxonomy Definition Linkbase
101.LAB *		XBRL Taxonomy Label Linkbase
101.PRE *		XBRL Taxonomy Presentation Linkbase

In accordance with SEC Release 33-8238, Exhibit 32.1 is being furnished and not filed.

* Furnished herewith. XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

SIGNATURES

In accordance with the requirements of the Exchange Act, the Company has caused this report to be signed by the undersigned, thereunto duly authorized.

	PWRCOR, INC.

Date: November 15, 2021	By:	/s/ Thomas Telegades
	Name:	Thomas Telegades
	Title:	Chief Executive Officer Interim Chief Financial Officer (Principal Executive Officer Interim Principal Financial Officer and Principal Accounting Officer)