Aqua Power Systems Inc.

What they do

Aqua Power Systems was originally incorporated in 2010 as NC Solar Inc. to develop solar energy collection farms on commercial and industrial buildings in North Carolina and other southern states. After a management change in 2014, the company was renamed Aqua Power Systems Inc. The company currently has no operations or revenue and is a blank check company with plans to pursue new business opportunities or engage in a merger or acquisition. Its only activity involves legal and administrative proceedings related to its past insolvency and custodianship/receivership.

Revenue drivers

• No revenue — The company reported $0 revenue for 2021, 2022, and all recent quarters, and has no operating business.

Recent performance

For 2022, Aqua Power Systems reported $0 revenue and net income of $554,911. Annual net income for 2021 was a loss of $77,932. Operating cash flow was negative $69,222 in 2022 and negative $5,100 in 2021. As of September 30, 2022, the company had total assets of $90,761, total liabilities of $75,045, and shareholder equity of $15,716. Cash and equivalents stood at $82,315.

Strategy

Management states that the company is a blank check company with no revenues and plans to pursue new business opportunities or engage in merger or acquisition opportunities. The company intends to comply with periodic reporting requirements under the Exchange Act. Recent 8-K events include a material agreement, an acquisition or disposition, a direct financial obligation, and a triggering event accelerating an obligation on December 30, 2022, as well as officer changes and other events in January and February 2023. No specific details of these events are provided in the excerpts.

Risks

• No operating business — The company has no revenue and no operations, making its future entirely dependent on completing a merger or acquisition.
• Blank check company status — As a blank check company, the company may face state regulations limiting the sale of its securities and has no obligation to develop a market for its securities until a business combination is concluded.
• Legal and administrative history — The company has undergone custodianship and receivership proceedings, including a receivership terminated in 2021, and has filed lawsuits to void shares, indicating past insolvency and management instability.
• Dependence on management — The company relies on Stephen Carnes as sole officer and director, who also owns the entity leasing office space, creating potential conflicts of interest.

Outlook

Management does not provide specific guidance but reiterates that the company intends to pursue new business opportunities or a merger or acquisition. The company expects to remain a blank check company until a business combination is completed. No timeline or specific targets are disclosed.