PwrCor, Inc. filed 10-Q on Aug 13

PwrCor, Inc. filed 10-Q with SEC. Read ‘s full filing at 000139390519000244.

The Company’s performance obligations under its engine business are generally satisfied as over time. Revenue from products or services transferred to its customer over time accounted for approximately 0% of revenue for both the three and six months ended June 30, 2019 and 0% and 12.3%, respectively, for the comparable periods in 2018. Revenue under this 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.

The majority of the Company’s revenue is from products and services transferred to customers at a point in time. It was approximately 100% and 87.7% of revenue for the six months ended June 30, 2019 and 2018, respectively. The Company recognizes revenue at the point in time in which the customer obtains control of the product or service, which is generally when product title passes to the customer upon shipment.

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. 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).

Two customers accounted for 95.7% and 4.3% for the three month period ended June 30, 2019, and 92.8% and 5.0%, respectively, of total project management revenue during the six months ended June 30, 2019. Two customers accounted for 96.3% and 3.7% for the three month period a year earlier, and 94.5% and 5.5%, respectively, during the six months ended June 30, 2018.

Two project management customers accounted for 90.9% and 9.1%, respectively, of total project management accounts receivable at June 30, 2019, and for 93.6% and 6.4%, respectively, at December 31, 2018. Project management accounts receivable constituted 91.8% of receivables at June 30, 2019, and 93.6% of net receivables as of December 31, 2018.

Revenues for the six months ended June 30, 2019 as compared to the same period in 2018 from the Company’s major customer showed a 32% 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 2018 to 2019 due primarily to a changing mix of customer activity. This gross profit for the six month period ended June 30, 2019, was 18% of revenues, versus 16% for the corresponding period in 2018.

Revenue declined 24% for the three month period and 38% for the six month period ended June 30, 2019, as compared to the corresponding periods from 2018. The decline was largely attributable to the winding down of the engine project in California, while project management revenues declined due to decreased activity with the largest customer.

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