TRANSACT ENERGY : PLAN OF OPERATIONS (form 10-Q) | MarketScreener


MANAGEMENT’S DISCUSSION AND ANALYSIS OF

                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENT NOTICE

This Form 10-Q contains certain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. For this purpose, any
statements contained in this Form 10-Q that are not statements of historical
fact may be deemed to be forward-looking statements. Without limiting the
foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,”
“estimate” or “continue” or comparable terminology are intended to identify
forward-looking statements. These statements by their nature involve
substantial risks and uncertainties, and actual results may differ materially
depending on a variety of factors, many of which are not within our control.

These factors include but are not limited to economic conditions generally and
in the industries in which we may participate; competition within our chosen
industry, including competition from much larger competitors; technological
advances and failure to successfully develop business relationships.



OUR BUSINESS


Our business is using sustainable energy in emissions-free processing of
municipal solid waste into at least eighteen(18) globally traded commodities.

We formed TransAct Energy Corp. as a Nevada corporation on March 15, 2006.
Although our original business plan called for the securing and managing of any
energy leasehold, the Company focused on securing producing and non-producing
oil and gas leases in Alberta, Canada. On September 7, 2006, we acquired a one
hundred percent (100%) interest in a Petroleum and Natural Gas Lease, from the
province of Alberta, Canada for twelve thousand and fifty-one dollars ($12,051),
the MedHat Project. We did not develop this resource. We looked to expand our
holdings in Alberta through acquisitions and joint ventures for the following
two years. We have since allowed this lease to lapse and moved away from this
focus.

In 2008, the Company was introduced to Dr. Mory Ghomshei one of the world’s
leading geothermal experts and two of his geothermal power projects in British
Columbia, Canada
. We worked with companies Aqua Terra Power and Aqua Terra
Geothermal through the balance of 2009 on the two geothermal power projects in
British Columbia. Other than lending Aqua Terra funds no formal arrangement was
entered pending them securing drill permits on the two projects.

These licenses lapsed under their original owners and were re-posted by the
government for public tender; an Ontario corporation associated with Dr.
Ghomshei
acquired most of the original licenses and has received drilling
permits. We entered discussions with this entity in the latter half of 2011 to
form a Farm-in relationship. We have put these discussions on hold pending the
completion of our first waste optimization plant although we are maintaining
dialogue with Dr. Ghomshei as it relates to utilizing Geothermal in the plants
themselves.

TransAct in mid-2009 started introducing the concept of geothermal power to
markets in Western and South Asia with the plan to enter joint venture
relationships to develop geothermal power projects in these areas. To enter
these markets as a power producer the Company found it strategic to develop
traditional carbon fueled power projects in addition. After discussions with
Spectrum Energy Project Investments (a UAE power company), submitted
applications to the Basra Investment Commission to develop/manage three natural
gas power plants. These multi-billion-dollar projects came with long-term power
purchase agreements (PPA) and sovereign guarantees and our application through
Spectrum was shortlisted. We were unsuccessful in completing our acquisition of
50% of Spectrum and the initial offering lapsed.

On August 31, 2009, TransAct Energy completed and closed its initial public
offering at twenty-five cents ($0.25) per share selling one million one hundred
and two thousand shares (1,102,000) for a total capital raise of two-hundred and
seventy-four thousand three hundred and ninety-eight dollars ($274,398 USD). The
majority of these funds were placed with Aqua Terra Power as convertible notes
to secure and develop the four (4) geothermal licenses in British Columbia,
Canada
; the balance was used to pay the costs of the offering and a small amount
went to working capital. The Company was approved for listing on the OTCBB in
December 2009 and received the trading symbol “TEGY.”

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Throughout 2010 we laid the groundwork for large power projects in South Europe,
Asia and Africa; smaller projects for solar, waste to energy and hydrogen fuel
cells specifically in India. We worked to secure markets for geothermal, new
solar photo-voltaic, waste to energy and hydrogen fuel cell generators.

Joint development agreement negotiations took place in December 2010 clearing
the way for Transact to enter one major project in South East Asia in 2011. The
2011 year was frustrated with the company’s inability to collect raised or
earned funds into the company’s bank account. Thus projects, joint ventures and
previous efforts were postponed or lost permanently. While we did maintain the
company’s trading status the year was taken up with collection efforts and
supporting business relationships while in limbo. We did initiate discussions on
new waste to energy technologies to leverage the work we had done previously in
this sector.

The Company’s 2012 efforts were focused on building out a Waste Optimization
division. We modified our Business Plan for this focus and entered a Joint
Development Agreement with the owners of a small scale, proprietary, zero
emissions waste optimization plant (“ZEWOPtm”) that had been operating a 20
tonne per day plant for two years. We reconnected with clients in India and
Brazil for future waste optimization opportunities. From the second quarter,
through to the end of 2012 we worked to raise the necessary funds to build a
municipal scale plant (500+ tonnes per day) in Scotland.

2013 continued as a building year for both the company and its Waste
Optimization division. We completed the acquisition of the ZEWOPtm technology
from the Scottish Inventor and brought him on as a long-term member of our team.
We successfully negotiated a relationship with the international firm Fichtner
Consulting Engineers to complete the certification of our plants going forward.
We identified suppliers of waste for the proposed United Kingdom plants,
initiated the relationships for the uptake of the Natural Gas and Electricity in
the United Kingdom and tentatively sourced the capital required for the first
plant in the United Kingdom. Globally we negotiated the intent to build a plant
in Mexico that includes the required equity and waste. In Brazil, we initiated a
relationship to create a green energy fund in order to grow both the market in
Brazil and the other strategic areas of South America. Initial talks have taken
place with potential development partners for a few of the major Brazil markets
pending the success of the Mexico plant.

Throughout 2014 TransAct worked to finalize the engineering review and
agreements necessary to develop the first ZEWOPtm in Puebla, Mexico. The plant
under design is capable of processing 1320 metric tons per day of Municipal
Solid Waste (“MSW”) and is estimated to cost approximately three hundred million
dollars. In late November Fichtner Consulting Engineers reported they believed
the ZEWOPtm could process the MSW 100% into useable products without emissions.
The Fichtner report provided TransAct the opportunity to submit the Waste Supply
Agreement to the Municipality of



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