Overview

808 Renewable Energy Corporation (hereinafter the "Company", "Our", "We" or "Us") is a general aviation and electric vehicle manufacturer and distributor, and our current product lines are AR-1 gyrocopter and electric reverse-trike vehicles, under the name Silverlight Aviation, LLC and Silverlight Electric Vehicles.





Critical Accounting Policies

Our significant accounting policies are more fully described in the notes to our financial statements included herein for the period ended June 30, 2022.

New and Recently Adopted Accounting Pronouncements

Any new and recently adopted accounting pronouncements are more fully described in Note 2 to our financial statements included herein for the period ended June 30, 2022.





Results of Operations

Financial Condition and Changes in Financial Condition





Overall Operating Results:

Comparison of the Three Months Ended June 30, 2022 with the Three Months Ended June 30, 2021

Revenue. For the three months ended June 30, 2022, we generated revenues of $218,391 as compared to $17,589 for the three months ended June 30, 2021. The increase in the three month period was mainly due to the acquisition of the gyrocopter division.

Operating Expenses. For the three months ended June 30, 2022 expenses were $102,206. An increase of $94,095 from June 30, 2021 expenses of $8,111. The increase was mainly due to increase in freight, parts, facility, and costs of the gyrocopter division.

Other Income. There is no other income for the three months ended June 30, 2021, and there is no other income for the three months ended June 30, 2022.

Net Income (Loss). The Company's net loss for the three month ended June 30, 2022 of $(178,117), and June 30, 2021 of $(23,524). The increase of net loss of $(154,593) was primarily due to the costs of setting up the sales, operations and manufacturing and facilities for the gyrocopter division.

Comparison of the Six Months Ended June 30, 2022 with the Six Months Ended June 30, 2021

Revenue. For the six months ended June 30, 2022, we generated revenues of $359,450 as compared to $287,263 for the six months ended June 30, 2021. The increase in revenue for the six month period of $72,187 was due to the increase of sales distributors, and varieties of models that were presented to the market for purchase.

Operating Expenses. For the six months ended June 30, 2022, operating expenses increased from $124,528 for the six months ended June 30, 2021, to $221,697. The increase was primarily due to the acquisition of the gyrocopter division.

Other Income. For the six months ended June 30, 2021, other income was $11, compared to other income of $37,842 for the six months ended June 30, 2022. The increase in Other Income of $37, 831 was due to forgiveness of the PPP loan held by SLA.

Net Income (Loss). The Company's net loss was $(279,390) compared to the net loss of $24,416 for the six months ended June 30, 2022 and 2021, respectively. The net loss was mainly due to a reduction of sales and increase in operational and marketing expenses.

Liquidity and Capital Resources

We are an early stage company and have generated insufficient revenue to date. We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.






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The Company had $397,180 in cash as of June 30, 2022. The Company has negative working capital of approximately $296,793, and total stockholders' deficit of $(277,032) as of June 30, 2022. As of June 30, 2022, the Company has yet to achieve profitable operations, and while the Company hopes to achieve profitable operations in the future, if not it may need to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's principal sources of liquidity have been cash provided by operating activities, as well as its ability to raise capital. The Company's operating results for future periods are subject to numerous uncertainties and it is uncertain if the Company will be able to become profitable and continue growth for the foreseeable future. If management is not able to increase revenue and/or manage operating expenses, the Company may not be able to maintain profitability. The Company's ability to continue in existence is dependent on the Company's ability to achieve profitable operations.

Should we not be able to fulfill our cash needs through the increase of revenue we will need to raise money through outside investors through convertible notes, debt or similar instrument(s), including but not limited to the current outstanding convertible notes. The Company has no committed external source of funds, and there is no guarantee we would be able to raise such funds. The Company plans to pay off current liabilities through sales and increasing revenue through sales of Company services and or products, or through financing activities as mentioned above.





Operating Activities

Cash used in operating activities - Net cash used in operating activities was $333,298 for the six months ended June 30, 2022, and $25,485 for the six months ended June 30, 2021, an increase of $307,813 primarily as a result of the higher net loss for the period from operations.





Investing Activities

Cash used in investing activities - Net cash used in investing activities was ($17,400) for the six months ended June 30, 2022 and ($306,858) for the six months ended June 30, 2021. The decrease in net cash used in investing activities was due to the purchase of subsidiaries in prior period that did not recur in the period ended June 30, 2022.





Financing Activities

Cash provided by financing activities - During the six months ended June 30, 2022, our net cash provided by financing activities was $263,648 as compared to net cash provided of $1,026,166 for the six months ended June 30, 2021 primarily as a result of financing for the acquisition of subsidiaries during the prior year.






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Off Balance Sheet Arrangements

We do not have any significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Recent Accounting Pronouncements

During the three months ended June 30, 2022, there were no accounting standards and interpretations issued which are expected to have a material impact on the Company's financial position, operations or cash flows.

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