OXFORD, CT, United States, via eTeligis Inc., 06/30/2014 – – Go Green Global Technologies Corp., Inc. (OTC Pink: GOGR) (PINKSHEETS: GOGR), an innovative U.S. water and fuel technology licensing, marketing and development company, today reported first quarter 2014 financial results. For the three months ending March 31, 2014, revenue was $11,703 and the company had a net loss of $91,182. Additionally, the company achieved its goal of providing investors with GAAP (Generally Accepted Accounting Principles) financial statements. This is a key step in the process of qualifying as an OTC Pink Current Information company.
"Congratulations to Mark and his team for all the hard work. This is an important milestone for our company and a foundation for our growth." said Paul Murdock, COO/President. In addition to the financial reporting change the company found the need to amend its Articles of Incorporation and re-issue preferred shares from 2012. An information statement was recently sent to common shareholders of record as of June 13th, 2014 describing the process and calling for a shareholder vote. During a special meeting of shareholders on June 26th, 2014 the Articles of Incorporation were approved by a majority of the vote. Mark Del Priore, CFO, added, "During the 3rd quarter we will re-issue the preferred shares which will allow us to accurately complete the OTC Disclosure Statement and become fully OTC Markets compliant."
About Go Green Global Technologies Corp.
Go Green Global Technologies Corp. (OTC Pink: GOGR) (PINKSHEETS: GOGR) is a U.S. water and fuel technology licensing, marketing, manufacturing and development company. Through its wholly owned subsidiary, Go Green Technologies Corp., it provides solutions worldwide utilizing the proprietary patented Sonical™ technology for both non-chemical water treatment and fuel combustion applications. The company is a leader in the emerging Pulsed-Power technology sector and has a portfolio of intellectual property that currently includes three United States patents and NSF/ANSI, UL, and CSA certification. Since inception, the company has focused on developing and marketing innovative technologies that lead to a cleaner and more efficient planet. You are invited to visit www.gogreentechcorp.com for additional information.
Safe Harbor Statement
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan," or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of significant accounting policies of Go Green Global Technologies Corp (Go Green or the Company) is presented to assist in understanding the Company’s financial statements. These statements are consolidated statements for Go Green Global Technologies Corp., and its wholly owned subsidiary Go Green Technologies Corp. The financial statements and notes are representations of the Company’s management, who is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.
Nature of Business
Go Green is a U.S. water and fuel technology licensing, marketing and development company. The Company provides solutions worldwide utilizing the proprietary patented Sonical™ process for both non-chemical water treatment and fuel combustion applications. Go Green’s proprietary technology applies the fundamental principles of electromagnetic induction to cause molecular-level changes in both water and petroleum distillates to deliver unique and significant benefits. Go Green has a portfolio of intellectual property that includes three United States patents and additional patents pending. Go Green was established in 2009 and merged with a publicly traded shell in early 2012. The Stock is publicly traded on the OTC Pink Sheets under the ticker GOGR.
The accompanying financial statements reflect the accounts of the Company as prepared on the accrual basis of accounting.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Company considers all short-term instruments purchased with a maturity of three months or less to be cash equivalents.
Accounts receivable are recorded when invoices are issued and are presented in the balance sheet net of the allowance for doubtful accounts. Accounts receivable are written off when they are determined to be uncollectible.
Allowance for Doubtful Accounts
Management provides for estimated losses on accounts receivable based on prior bad debt experience and a review of the existing receivables. It is management’s judgment that all accounts receivable were collectible as of March 31, 2014
Inventory is stated at the lower of cost, determined using the first-in, first-out ("FIFO") method, or market. Inventory includes the cost of packaging materials. Obsolete or unsalable inventory is reflected at its estimated realizable value.
Shipping and Handling Costs
All amounts billed to customers relating to shipping and handling are classified as revenue. Shipping and handling costs incurred by the Company are classified as costs of goods sold.
Advertising and promotion costs are expensed as incurred. Advertising expenses were $274.00 for the 3 months ended March 31, 2014.
Property and Equipment
Property and equipment is recorded at cost and is depreciated using the straight-line method over the estimated useful lives of the assets as follows:
Depreciation expense amounted to $7,651.89 for the 3 months ended March 31, 2014. Expenditures for repairs, maintenance and renewals are charged to expense as incurred. Expenditures which improve an asset or extend its estimated useful life are capitalized and depreciated over the assets remaining useful life. When properties are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included income.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Accordingly, actual results could differ from those estimates. Such estimates include amounts for the allowance for doubtful accounts, inventory valuation reserves and deferred tax assets and liabilities.
Revenue from the sale of by the Company is recognized upon shipment to the customer, when the transfer of legal title, which is defined and generally accepted in the standard terms, and conditions, arises between the Company and the customer. Costs and related expenses are recorded as cost of sales when the related revenue is recognized. Revenue is recorded net of any applicable sales tax.
Concentration of Risk
Financial instruments, that potentially subject the Company to concentrations of credit risk, consist principally of cash and accounts receivable.
Income taxes are provided for the tax effects of the transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences in accumulated depreciation and net operating loss carryforwards. The deferred tax assets and liabilities represent future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of monies held in checking accounts. Accounts at the institutions are insured by the Federal Deposit Insurance Corporation up to $250,000 each. There were no uninsured bank balances at March 31, 2014.
At March 31, 2014 accounts receivable consisted of the following:
is management’s judgment that all amounts are collectible.
OTHER CURRENT ASSETS
Other current assets as of March 31, 2013 consisted of 87,544.31 in short term loans to management.
PROPERTY AND EQUIPMENT
Property and equipment consisted of the following at March 31, 2014:
CONCENTRATION OF CREDIT RISK
With minimal sales in the 3 months ended March 31, 2014, all of Go Green’s customers accounted for more than 10% of sales. Go Green’s customer concentration will subside as sales and the customer base grows going forward. Two customers represented 51% of the accounts receivable balance at March 31, 2013. Management believes it is likely that these are collectable.
The Company has $236,478.09 in outstanding accounts payable. The majority of this is related to the outstanding balance due to WTS LLC ("WTS") for the initial acquisition of the Intellectual Property associated with the SonicalTM product line. WTS stands for Water Treatment Systems. It is a United States based partnership that originally owned the intellectual property of Mario Pandolfo associated with the SonicalTM product line. WTS is owned by multiple shareholders and a board member. See section titled "Related Party Transactions" for more on the relationship with WTS.
Note payable to an individual investor originally in the amount of $50,000. It was originally due in September of 2013, but it was extended for 12 additional months. In return for the extension, the Company made a $20,000 principal payment. The $35,925.65 in Notes Payable reflects the remaining principal and accrued interest outstanding.
In June 2012, the Company entered into an operating lease for the Company’s facility. The term of the operating lease is three years with an option to extend the lease for another 3 years. The rent expense including common area fees amounted to $10,423.62 for the 3 months ending March 31, 2014.
Minimum future payments under the operating lease are as follows:
RELATED PARTY TRANSACTIONS
At March 31, 2014, the Company had an amount due from a shareholder in the amount of $5,000.00. This amount does not have specific repayment terms and does not bear interest.
At March 31, 2014, the Company had an amount due from a shareholder and board member in the amount of $5,000.00. This amount does not have specific repayment terms and does not bear interest.
At March 31, 2014, the Company had an amount due from a shareholder and executive in the amount of $34,713.59. This amount does not have specific repayment terms and does not bear interest. The same executive has a loan outstanding with the company of $30,021.52 that was entered into in October of 2013 and bears interest.
At March 31, 2014, the Company had an amount due to a shareholder and in the amount of $35,925.65.
At March 31, 2014, the Company had an amount due to WTS LLC in the amount of $175,000.00 in connection to the Company’s purchase of intellectual property. WTS is owned by multiple shareholders and a board member.
At March 31, 2014, the Company had an amount due to an employee in the amount of $12,809.20. This amount is an advance on future commissions and does not have specific repayment terms and does not bear interest.
The Company purchases inventory at an agreed upon price and in an arms length transaction from WTS. WTS is owned by multiple shareholders and a board member.
The Company has and expects to enter into distributor, dealer, consultant and sales commission contracts with shareholders.
The Company discovered that its preferred shares were issued contrary to Nevada Law. The Company is in the process of amending the Articles of Incorporation to rectify the situation.
President and COO
SOURCE: Go Green Global Technologies Corp.