Item 2.02 Results of Operations and Financial Condition
The Company has issued the following press release following a meeting and action of the Board of Directors.
My Power Solutions, Inc. Ceases Operations in Rural South African Communities
Following Operational Review
Board of Directors “No Confidence” Vote Based on Poor Performance of South African Operations
HURST, TX – June 19, 2018
– Poverty Dignified, Inc. (OTCQB: PVDG) (“Poverty Dignified” or the “Company”). Based on a recent performance review by Poverty Dignified Inc.’s Board of Directors, the decision has been made to withdraw all operations of its wholly owned subsidiary, My Power Solutions, Inc., in South Africa. My Power Solutions provides affordable, practical, electricity, connectivity and digital education – through solar technology – that empowers essential needs in rural areas across the globe.
The board’s 24-month performance and on-the-ground assessment determined that the South African My Power Solutions management team and operating structure had failed to secure adequate revenue. Following the review process, the Board of Directors determined that specific issues resulted in Poverty Dignified’s market capitalization falling from approximately $17 million on October 25, 2017, when minimal trading activity began, to approximately $1.9 million at May 31, 2018.
My Power Solutions, Inc. incurred a net loss of approximately $504,000 for the fiscal year ended August 31, 2017, as compared to a net loss of only approximately $94,000 for the fiscal year ended August 31, 2016. With no revenues generated from its operations during the six months ended February 28, 2018, My Power Solutions, Inc. generated an additional net loss of approximately $219,000. In addition to the lack of revenues, other contributing factors included higher expenses than originally projected due to training, the implementation of solar installations and the instability of the political environment.
“Poverty Dignified remains committed to providing rural communities access to reliable electricity and connectivity to advance communication capabilities, education infrastructure and creating economic opportunity,” said Kevin Lowther, CEO, Poverty Dignified, Inc. “Poverty Dignified is currently in the planning stages to recapitalize and reorganize to create a new, more streamlined operation with significant shifts in market strategy that leverage existing experience in the region.”