Principal Solar : Financial Statements

PRINCIPAL SOLAR, INC.

FINANCIAL STATEMENTS

FOR THE PERIOD ENDED

MARCH 31, 2022

(UNAUDITED)

PRINCIPAL SOLAR, INC.

BALANCE SHEETS

			March 31, 2022				December 31, 2021
ASSETS			(Unaudited)				(Unaudited)
CURRENT ASSETS
Cash in Bank		$	53,634	$	386,789
Loan Origination Fees			53,424				53,424
TOTAL CURRENT ASSETS			107,058				440,213
NON-CURRENT ASSETS
Note Receivable - Related Party	8		1,000,000				1,000,000
Interest Receivable			180,000				160,000
Equity Investments	5		3,421,491				2,547,500
Investment in Oil & Gas Lease			567,347				533,750
TOTAL ASSETS		$	5,275,896			$	4,681,463
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable and Accrued Expenses	4	$	271,076				263,622
Notes Payable and Accrued Interest			704,714				561,128
Discount on Notes Payable			(179,141)				(90,988)
Convertible Notes Payable and Accrued Interest	4		1,557,050				1,305,641
TOTAL CURRENT LIABILITIES			2,353,699				2,039,403
Mediation Settlement Payable	4		215,062				215,062
Liabilities arising from Reverse Merger	3		1,003,839				1,003,839
TOTAL LIABILITIES			3,572,600				3,258,304
STOCKHOLDERS' EQUITY
Preferred Stock: $0.01 par value; 2,000,000			10,000				10,000
shares authorized; 1,000,000 designated as
Series B issued and outstanding at March 31,
2022 and December 31, 2021, respectively
Common Stock: $0.01 par value;			2,661,911				2,631,411
1,000,000,000 shares authorized; 266,191,013
and 263,141,013 shares issued and outstanding
at March 31, 2022 and December 31, 2021,
respectively
Additional paid-in-capital			40,462,431				39,541,390
Accumulated Deficit			(41,431,046)				(40,759,642)
TOTAL EQUITY			1,703,296				1,423,159
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY		$	5,275,896			$	4,681,463

The accompanying notes are an integral part of these financial statements.

			PRINCIPAL SOLAR, INC.
	STATEMENTS OF OPERATIONS
			(Unaudited)
			For the Three Months Ended
			March 31,
			2022				2021
REVENUE	$	-	$	-
OPERATING EXPENSE
General and Administrative Expenses			420,659				350,407
OPERATING LOSS
		420,659				35,407
OTHER (INCOME)/EXPENSE
Interest Income			(20,000)				(20,000)
Interest Expense			218,530				76,365
Total Other (Income) Expense			198,530				56,365
NET LOSS FOR PERIOD
$	619,188			$	406,772
Net (loss) per share attributable to	$	0.00			$	0.01
common stockholders, basic and
diluted
Weighted average shares			265,394,902				70,229,281
outstanding, basic and diluted

The accompanying notes are an integral part of these financial statements.

PRINCIPAL SOLAR, INC.

STATEMENTS OF CASH FLOWS

(Unaudited)

			For the Three Months Ended March 31,
			2022				2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)	$	(619,188)	$	(406,772)
Changes in non-cash items:
Interest Receivable			(20,000)				(20,000)
Changes in operating assets and liabilities:
Accounts Payable and Accrued Expenses			(78,360)				(671,535)
Notes Payable			(433,576)				(255,100)
Net cash provided by (used in) operating activities			(1,151,124)				(1,353,407)
CASH FLOWS FROM INVESTING ACTIVITIES:
Equity Investments			11,550				-
Net cash provided by (used in) investing activities			11,550				-
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from ST Debt			95,203				-
Issuance of Common Stock - Private Placement			66,000				2,343,000
Proceeds from Issuance of Convertible Notes			645,216				-
Net cash provided by financing activities			806,419				2,343,000
Net increase (decrease) in cash and cash equivalents			(333,155)				989,593
Cash and cash equivalents at beginning of period			386,789				11,355
Cash and cash equivalents at end of period		$	53,634		$	1,000,948

The accompanying notes are an integral part of these financial statements.

PRINCIPAL SOLAR, INC.

STATEMENT OF STOCKHOLDERS' DEFICIT

MARCH 31, 2022

(unaudited)

	Preferred Stock		Common Stock
	Number				Number of						Additional			Accumulated
	of Shares		Amount		Shares			Amount		Paid-in Capital			Deficit			Total
Balance, December 31, 2021	1,000,000	$ 10,000	263,141,013	$	2,631,411	$	39,541,391	$	(40,759,642)	$	1,423,159
Correction of 2019 Acquisition	-		-		-			500			885,041			(52,216)			833,325
Common Stock Issued in lieu of cash	-		-	3,050,000			30,000			25,500			-			66,000
payments
Net Income/(Loss)	-		-		-			-			-			(619,188)			(619,188)
Balance, March 31, 2022	1,000,000		$ 10,000		266,191,013		$	2,661,911		$	40,462,432		$	(41,431,046)		$	1,703,296
Balance, December 31, 2020	1,000,000	$ 10,000	62,014,392	$	607,895	$	28,088,751	$	(29,626,183)	$	(919,537)
Common Stock Issued	-		-	36,080,000			360,800			1,982,200			-			2,343,000
Net Income/(Loss)	-		-		-			-			-			(406,772)			(406,772)
Balance, March 31, 2021	1,000,000		$ 10,000		98,094,392		$	968,695		$	30,070,951		$	(30,032,955)		$	1,016,691

The accompanying notes are an integral part of these financial statements.