Mass Megawatts continues on downward spiral, reports net losses
Mass Megawatts Wind Power Inc. (OTC: MMMW) in Worcester, Mass. reported no revenues and a net loss of $149,000 for the three months that ended in January, the company’s third quarter.
Founded in 1997, the company has incurred an operating loss every year since, totalling $6.8 million to date. The company said in the filing that it is “soliciting additional equity investors through private placement offerings and is obtaining funding from Mass Megawatts’ CEO to fund these losses; however, no assurance can be given as to the success of these efforts.”Got that? They have been in business since 1997 and have never turned a profit. Now, I'm curious. I thought that, in order to be considered a business - as opposed to a hobby - an entity had to turn a profit at least once every three years. Now, I have never claimed to be a business guy (I'm a biochemist working in sales who writes on the side. Go figure), but it would seem to me that after a period of time - say, five years - it would become evident to even the most diehard green that this business model is not working.
Here's the kicker:
The company had total assets of $26,961 as of Jan. 31.
I have that in my truck and my motorcycle, folks... How on earth can a business continue to call itself a business, when, after nearly 16 years they have never made a profit, have stock that sells literally for pennies, and have net assets equivalent to a small SUV? Now, I applaud their commitment - they have 14 employees, and have managed to stay afloat for the better part of a generation. But unless they have a comptroller with the financial-fu of Larry Correia, it's hard to see how they've managed to walk the fine line between barely staying afloat and going the way of the dodo for sixteen years.
But, hey, if they've managed to do it without taking stimulus money or bailouts, good for them!
That is all.