Conservative Broadcast Media & Journalism Inc.

What they do

The company's operating plan is to develop wind power generation projects, but no revenues have been generated to date and no wind facilities are operational. Management states that potential revenues from wind projects will not be generated until sometime after December 31, 2011, and will require additional capital, construction and project debt financing, and turbine supply relationships. For the foreseeable future, operations depend on conserving cash and obtaining equity and/or debt financing.

Revenue drivers

• Wind power generation projects — The company expects future revenues from wind power generation projects, but no revenues have been generated and no specific projects or capacity are described in the excerpts.

Recent performance

For the year ended December 31, 2010, the company incurred a net loss of $2,279,911 and had an accumulated deficit of $7,818,986 since inception. At December 31, 2010, current assets were $668 and working capital deficit was $1,254,334, compared to cash of $17,322 and working capital deficit of $652,292 at December 31, 2009. The company reported no revenues for 2010. As of June 30, 2011, total assets were $298,108, total liabilities were $3.7 million, shareholder equity was negative $3.4 million, and cash was $25,082.

Strategy

Management's plan is to conserve existing cash and obtain additional equity and/or debt financing to fund operations and wind project development. The company completed several financings in 2010, including a private placement of common stock that raised $175,000 and short-term loans from shareholders and Gottbetter Capital Group. The company intends to continue pursuing additional financing from a variety of sources. There is no assurance that it will be able to obtain sufficient financing to continue operations until a wind facility becomes operational.

Risks

• Going concern — The company has stated that it may be unable to continue as a going concern for a reasonable period of time.
• No revenues and no operating projects — The company has no revenues and no operational wind projects, and expected revenues will not materialize until after 2011.
• Financing risk — Operations depend on raising additional equity or debt financing, with no assurance that such financing can be obtained or will be sufficient.
• Past due loans — Shareholder loans with principal payments due June 7, 2010, were outstanding and past due as of December 31, 2010.

Outlook

Management expects operating expenses of at least approximately $75,000 per quarter based on consulting agreements and general and administrative expenses. The company does not have sufficient cash resources to finance operations beyond several months unless it raises additional financing. Potential revenues from wind projects are not expected until after December 31, 2011, and may require additional capital and project debt financing.