UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
 
FORM 10-Q
 
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2006
 
OR
 
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 
For the transition period from ___________ to ___________
 
Commission file number 1-11476
 
WORLD WASTE TECHNOLOGIES, INC.
(Exact name of Registrant as specified in its charter)
 
California
(State or other jurisdiction
of incorporation or organization)
 
95-3977501
(I.R.S. Employer
Identification No.)  
   
 
13520 Evening Creek Drive, Suite 130,
 
 
San Diego, California
 
92128
(Address of principal executive offices)
 
(Zip Code)
 
Registrant's telephone number, including area code: (858) 391-3400
 
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES   x NO   o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non- accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
 
Large accelerated filer    o            Accelerated filer     o    Non-accelerated filer       x
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):
 
Yes    o  No      x
 
State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 25,217,071 shares issued and outstanding as of October 27, 2006.
 
 
 
 

 
WORLD WASTE TECHNOLOGIES, INC.
 
Form 10-Q
 
Table of Contents

 
       
Page
         
PART I.
 
FINANCIAL INFORMATION
   
Item 1
 
Financial Statements (unaudited):
   
   
Consolidated Balance Sheets
 
3
   
Consolidated Statements of Operations for the three months ended September 30, 2006
 
4
   
Consolidated Statements of Operations for the nine months ended September 30, 2006
 
5
   
Consolidated Statements of Stockholders' Equity (Deficit)
 
6
   
Consolidated Statements of Cash Flow
 
7
   
Notes to Consolidated Financial Statements
 
8
Item 2
 
Management's Discussion and Analysis of Financial Condition and Results of Operations
 
24
Item 3
 
Quantative and Qualitative Disclosures About Market Risks
 
29
Item 4
 
Controls and Procedures
 
29
PART II.
 
OTHER INFORMATION
 
30
Item 6
 
Exhibits
 
30
SIGNATURES
 
31

 
 
2
 
Part I - FINANCIAL INFORMATION
 
Item 1. - Financial Statements
 
World Waste Technologies, Inc. and Subsidiaries
(Formerly World Waste of America, Inc.)
 
 
(A Development Stage Company)
 
 
Consolidated Balance Sheets

 
   
(Unaudited)
September 30,
2006
 
December 31,
2005
 
       
 
 
ASSETS:
             
Current Assets:
             
Cash and cash equivalents
 
$
16,550,676
 
$
2,864,377
 
Accounts Receivable
   
11,279
       
Prepaid Expenses
   
124,856
   
181,912
 
Debt Offering Cost
           
453,264
 
Total Current Assets
   
16,686,811
   
3,499,553
 
               
Fixed Assets:
             
Machinery and Equipment, net of accumulated depreciation of $1,257,906 at September 30, 2006 and $30,958 at December 31, 2005
   
19,338,037
   
12,926,284
 
Construction in Progress
          
4,094,263
 
               
Total Fixed Assets
   
19,338,037
   
17,020,547
 
               
Other Assets:
             
Deposit L/T
   
36,519
   
104,839
 
Patent License, net of accumulated Amortization of $59,841 at September 30, 2006 and $0 at December 31, 2005
   
1,294,597
   
556,605
 
TOTAL ASSETS
 
$
37,355,964
 
$
21,181,544
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY:
             
Current Liabilities:
             
Accounts Payable
 
$
703,662
 
$
1,292,810
 
Accrued Salaries Payable
   
103,640
   
217,684
 
Accrued Retention Payable
         
380,572
 
Deposit on Senior Secured Debt
         
250,000
 
Capital Lease, short term
   
54,309
       
Other Liabilities
   
92,189
   
188,039
 
Total Current Liabilities
   
953,800
   
2,329,105
 
               
Long Term Liabilities:
             
Capital Lease, long term
   
99,565
       
Senior Secured Debt (See Note 5)
         
3,191,811
 
Warrant Liabilities
   
1,178,640
   
618,654
 
Total Long Term Liabilities
   
1,278,205
   
3,810,465
 
TOTAL LIABILITIES
   
2,232,005
   
6,139,570
 
               
Redeemable Preferred Stock (See Note 6)
   
11,635,874
   
7,096,544
 
               
Commitments and contingencies (Note 9)
             
               
STOCKHOLDERS’ EQUITY
             
               
Common Stock - $.001 par value:
             
100,000,000 shares authorized, 25,217,042 (unaudited) and 24,686,230 shares issued and outstanding at September 30, 2006 and December 31, 2005, respectively
   
25,217
   
24,686
 
               
Additional Paid-in Capital
   
49,779,962
   
15,961,816
 
Deficit Accumulated during development stage
   
(26,317,094
)
 
(8,041,072
)
TOTAL STOCKHOLDERS’ EQUITY
   
23,488,085
   
7,945,431
 
               
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
 
$
37,355,964
 
$
21,181,544
 
 
See accompanying notes to consolidated financial statements.
 
 
3
 
 
World Waste Technologies, Inc. and Subsidiaries
(Formerly World Waste of America, Inc.)

 
(A Development Stage Company)

 
Unaudited Consolidated Statements of Operations

 
   
Three Months
Ended
Sept. 30, 2006
 
Three Months
Ended
Sept. 30, 2005
 
       
 
 
GROSS REVENUE:
 
$
44,288
 
$
—
 
               
Operating expenses:
             
Disposal of Rejects
   
(31,292
)
     
Plant Operating Expenses
   
(1,075,427
)
     
Plant Depreciation
   
(620,881
)
     
               
Gross Margin
   
(1,683,312
)
 
—
 
               
Research and Development
   
(60,000
)
 
(60,000
)
General and Administrative
   
(944,584
)
 
(977,111
)
Loss from Operations
   
(2,687,896
)
 
(1,037,111
)
               
Other Income and (Expense):
             
Interest Income (Expense)