EuroSite Power : Fiscal Year 2021 Financial Statements

EUROSITE POWER INC. CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS Current assets:

Cash and cash equivalents Accounts receivable

Value added and other tax receivable UK energy taxincentives receivable Inventory

Other current assets

Total current assets Property and equipment, net Other assets, long-term TOTAL ASSETS

LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:

Accounts payable

Accrued expenses and other current liabilities Value added and other tax payable

Note payable - bank, short-term

Total current liabilities

Long-term liabilities :

Note payable - bank

Note payable - related party Total liabilities

Stockholders' equity:

Common Stock, $0.001 par value; 100,000,000 shares authorized; 82,263,525 issued at December 31, 2021 and December 31, 2020 Additional paid-in capital

Capital contributions Accumulated deficit

Cumulative translation adjustment (CTA)

Total stockholders' equity

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

December 31, 2021

December 31, 2020

$

2,039,265 399,446 - -

203,317 253,798

257,342 204,360

$

1,924,988 393,322 - -

2,899,371 2,776,468

8,470,989 9,276,541

664,772

$

12,035,131

699,994

$

12,753,003

$

182,351 $ 305,996

202,768 213,607

63,359 57,255

500,832 500,832

949,310 1,077,689

1,334,942 1,334,942

- 2,284,252

82,264 22,895,266

(13,179,332)

(47,319)

9,750,879

$

12,035,131

- 2,412,632

82,264

22,883,266 -

(13,041,345)

24,905

9,949,089

$

12,361,720

Three Months EndedDecember 2021

Revenues

Energy revenues Turnkey revenues Other revenues

Cost of sales

Fuel, maintenance and installation Turnkey costs

Site impairments

Site depreciation expense

Gross profit (loss) Operating expenses

General and administrative Selling

Engineering

Gain / (Loss) from operations Other income (expense)

Interest income

Interest expense, net of debt premium amortization Debt conversion expense

Loss before income taxes Benefit for income taxes Net gain / (loss)

Net loss per share - basic and diluted

Weighted-average shares outstanding - basic and diluted

Non-GAAP financial disclosure

Loss fromoperations Depreciation expense Site Impairments

Stock based compensation Adjusted EBITDA

1,421,631 5,014

December 2020

1,039,816 22,196 -1,426,644

1,062,012

824,682 528,039

(13,761) 16,323

- 192,187 1,003,109

423,536

- 178,227 722,588

339,424

233,396 170,858

135,653 65,357

152,660 90,495

521,710

(98,174)

(29,411)

- (29,411)

(127,585)

$ $

(127,585)

(0.0016) 82,263,525

326,710

12,714

(23,971)

- (23,971)

(11,257)

$ $

(11,257)

(0.0001) 82,263,525

$

(98,174)

192,560 179,017

- -$

94,386

$ 12,714

- -$

191,730

Twelve Months EndedDecember 2021

Revenues

Energy revenues Turnkey revenues Other revenues

Cost of sales

Fuel, maintenance and installation Turnkey costs

Site impairments

Site depreciation expense

Gross profit (loss) Operating expenses

General and administrative Selling

Engineering

Loss fromoperations Other income (expense)

Interest income Interest expense

Debt conversion expense

Loss before income taxes Benefit for income taxes Net loss

Net loss per share - basic and diluted

Weighted-average shares outstanding - basic and diluted

Non-GAAP financial disclosure

Loss fromoperations Depreciation expense Site Impairments Aborted acquisition costs Stock based compensation Adjusted EBITDA

4,411,770 30,195

December 2020

3,239,172 52,889

4,441,965 3,292,061

2,334,184 1,761,922

(11,207) 32,588 -

795,262 624,004

3,118,239

1,323,726

2,418,514

873,547

706,557 634,673

298,238 227,295

462,675 397,781

1,467,470

(143,744)

(123,059)

(123,059)

(266,803) 128,816

$ $

(137,987)

(0.002) 82,263,525

$

(143,744) 798,757 - - 12,000

$

667,013

1,259,749

(386,202)

(75,413)

-(75,413)

(461,615)

59,128

$ $

(402,488)

(0.005) 82,263,525

$

(386,202) 630,727 - - 18,592

$

263,117

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

CASH FLOWS FROM OPERATING ACTIVITIES: Net loss

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and impairment

Stock-based compensation

Changes in operating assets and liabilities

(Increase) decrease in:

Accounts receivable

Value added and other tax receivable

Accrued UK energy taxincentives

Inventory

Prepaid and other current assets

Other assets, long term Increase (decrease) in:

Accounts payable

Due to related party

Accrued expenses and other current liabilities

Capital Contributions to Joint Venture

Net cash used in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES:

Payments on note payable

Proceeds from loan payable - bank

Net cash provided by (used in) financing activitiesTwelve Months EndedDecember 2021

December 2020

$

(137,987)

798,757 630,727

12,000 18,591

(6,124) 49,294

6,104 16,762

- 26,328

50,481 17,035

(52,981) 71,499

35,222

(123,644)

-

(10,839)

- 570,988

(251,875) (251,875)

(471,796) 339,183 (132,613)

$

(402,488)

(12,254)

106,025 - 15,245 - 536,764

(1,508,096) (1,508,096)

(284,831) 1,290,937 1,006,106

Effect of Exchange Rate on Cash and Cash Equivalents

(72,223) 8,240

Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of the period Cash and cash equivalents, end of the period

114,277 43,014

1,924,988

$

2,039,265

1,881,974

$

1,924,988

EUROSITE POWER INC. STATEMENT OF CHANGES IN EQUITY

Capital

Cumulative

Called up	contribution	Profit and loss
share capital	reserve	account	Total equity
$	$	$	$
At 31 December 2020	82,264	22,883,266	(13,041,345)	24,905	9,949,089
Loss for the year to date	(137,987)	(137,987)
Stock based compensation	12,000	12,000
Movement in CTA	(72,224)	(72,224)
At 31 December 2021	82,264	22,895,266	(13,179,332)	(47,319)	9,750,879

Translation Adjustment (CTA)