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 Vehicle Inc.





Critical Accounting Policies

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





Results of Operations

Financial Condition and Changes in Financial Condition





Overall Operating Results:

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

Revenue. For the three months ended September 30, 2022, we generated revenues of $43,033 as compared to $80,420 for the three months ended September 30, 2021. The decrease was mainly due to the lack of sales in the recession market.

Operating Expenses. For the three months ended September 30, 2022 operating expenses were $127,892 as compared to $106,415 for the three months ended September 30, 2021. The increase is due to the increased costs in parts and facilities of the gyrocopter division

Net Income (Loss) from Operations. The Company's net loss for the three months ended September 30, 2022 was $(165,437) and for September 30, 2021 was $(92,748). The increase in net loss was due to the increase of facilities cost and increase expenses in parts and freight.

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

Comparison of the Nine Months Ended September 30, 2022 with the Nine Months Ended September 30, 2021

Revenue. For the nine months ended September 30, 2022 we generated revenues of $402,483 as compared to $367,684 for the nine months ended September 30, 2021. The increase in revenue was due to the increase of sales distributors, and varieties of models that were presented to the market for purchase.

Operating Expenses. For the nine months ended September 30, 2022 operating expenses were $349,588 as compared to $246,252 for the nine months ended September 30, 2021. The increase was primarily due to the acquisition of the gyrocopter division.

Net Income (Loss) from Operations. The Company's net loss for the nine months ended September 30, 2022 was $(539,827) and for September 30, 2021 was $(134,473). The increase of the net loss was primarily due to a reduction of sales and increase in operational and marketing expenses.






         16

  Table of Contents

Other Income. For the nine months ended September 30, 2022 other income was $37,843 as compared to $37,944 for the nine months ended September 2021. The decrease in other income of $101 was primarily due to variations in forgiveness of PPP loans held by SLA.

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.

As of September 30, 2022 the Company had cash of $164,593, negative working capital of $569,428 and a total stockholders' deficit of $(546,190). 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 achieve 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 increase revenue through sales of Company services and or products or through financing activities as mentioned above.





Operating Activities

Cash provided by (used) in operating activities - Net cash used in operating activities was $(129,547) for the nine months ended September 30, 2022, and $127,223 for the nine months ended September 30, 2021. The increase is primarily due to the higher net loss for the period from operations.





Investing Activities

Cash provided by (used) in investing activities - Net cash used in investing activities was $(119,980) for the nine months ended September 30, 2022 and ($425,139) for the nine months ended September 30, 2021. The decrease in net cash used in investing activities was due to the purchase of subsidiaries in the prior period that did not recur in the period ended September 30, 2022.





Financing Activities

Cash provided by (used) financing activities - During the nine months ended September 30, 2022, our net cash used by financing activities was $(67,289) as compared to net cash provided of $968,326 for the nine months ended September 30, 2021. This is primarily as a result of financing for the acquisition of subsidiaries during the prior year.

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.






         17

  Table of Contents

Recent Accounting Pronouncements

During the nine months ended September 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.

© Edgar Online, source Glimpses