GOGR Go Green Global Technologies Corporation (QB)

USA         

1-888-585-9008

Canada      

1-888-299-2873

Go Green Global Technologies Corp.

CONSOLIDATED FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION

September 30, 2014

Go Green Global Technologies Corp.

EXHIBIT A

BALANCE SHEET

September 30, 2014

ASSETS

2014

CURRENT ASSETS:

Cash and cash equivalents

$    72,297

Accounts receivable - net 

47,142

Inventory

91,822

Prepaid expenses

-

Other Current Assets

87,480

Total Current Assets

298,741

PROPERTY AND EQUIPMENT - net

476,460

OTHER ASSETS:

     Prepaid expenses

-

     Loan receivable - related party

-

     Deposits

5,031

Total Other Assets

5,031

TOTAL ASSETS

$ 780,232

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$   248,166

Accrued Expenses

-

Notes payable - current portion

35,926

Taxes Payable

4,584

Other Current Liabilities

200

Total Current Liabilities

288,875

LONG TERM LIABILITIES:

Notes payable - long term portion

-

Total Long Term Liabilities

-

TOTAL LIABILITIES

288,875

STOCKHOLDERS' EQUITY:

Common stock - $0.001 par value, 66,000,000 shares authorized,

 52,145,176 shares issued and outstanding

52,145

Preferred stock - $0.001 par value, 9,000,000 shares authorized,

 5,296,000 shares issued and outstanding

5,296

     Paid in capital

1,536,234

     Retained deficit - Exhibit B

(1,102,318)

       Total Stockholders' Equity

491,357

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 780,232

Go Green Global Technologies Corp.

EXHIBIT B

STATEMENT OF INCOME AND RETAINED DEFICIT

FOR THE QUARTER ENDED SEPTEMBER 30, 2014

2014

SALES

$       51,461

DIRECT COSTS

20,453

GROSS PROFIT

31,008

SELLING, GENERAL AND 

ADMINISTRATIVE EXPENSES

148,224

OPERATING INCOME

(117,216)

OTHER EXPENSE -

Interest expense (income)

-

Other Expense (income)

(2,250)

INCOME BEFORE PROVISION FOR 

INCOME TAXES

(114,965.79)

PROVISION FOR INCOME TAXES

-

NET INCOME

(114,966)

RETAINED DEFICIT- Beginning

(987,353)

RETAINED DEFICIT - Ending - Exhibit A

(1,102,318)

Go Green Global Technologies Corp.

EXHIBIT C

STATEMENT OF INCOME AND RETAINED DEFICIT

FOR THE 9 MONTHS ENDED SEPTEMBER 30, 2014

2014

SALES

$         101,899

DIRECT COSTS

45,793

GROSS PROFIT

56,106

SELLING, GENERAL AND 

ADMINISTRATIVE EXPENSES

395,476

OPERATING INCOME

(339,370)

OTHER EXPENSE -

Interest expense (income)

(0)

Other Expense (income)

(4,500)

INCOME BEFORE PROVISION FOR 

INCOME TAXES

(334,870)

PROVISION FOR INCOME TAXES

-

NET INCOME

(334,870)

RETAINED DEFICIT- Beginning

(767,448)

RETAINED DEFICIT - Ending - Exhibit A

$   (1,102,318)

Go Green Global Technologies Corp.

EXHIBIT D

STATEMENT OF CASH FLOWS

FOR THE 9 MONTHS ENDED SEPTEMBER 30, 2014

2014

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income  - Exhibit B

$(334,870)

Adjustments to reconcile net income to net cash

provided by operating activities:

Depreciation and amortization

22,955

Income tax expense

-

Income tax refund

-

Net (increase) decrease in:

Accounts receivable 

(35,239)

Inventory

(19,694)

Prepaid expenses and other current assets

-

Deposits

-

Net increase (decrease) in:

Accounts payable

(3,191)

Accrued expenses and other current liabilities

(8,030)

Net Cash Provided by Operating Activities

(378,068)

CASH FLOWS FROM INVESTING ACTIVITIES:

     Purchases of property and equipment

(214,500)

Net Cash Used by Investing Activities

(214,500)

CASH FLOWS FROM FINANCING ACTIVITIES:

     Repayments of Loan

-

     Equity Issuance

648,073

     Other

-

Net Cash Used by Financing Activities

648,073

NET DECREASE IN CASH

55,506

CASH BALANCE - Beginning 

16,792

CASH BALANCE- Ending - Exhibit A

$  72,297

Go Green Global Technologies Corp.

NOTES TO FINANCIAL STATEMENTS

September 30, 2014

NOTE 1

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.

Accounting Method

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

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 September 30, 2014

Inventory

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 Costs

Advertising and promotion costs are expensed as incurred.  Advertising expenses were $2,979 for the 9 months ended June 30, 2014. 

Go Green Global Technologies Corp.

NOTES TO FINANCIAL STATEMENTS

September 30, 2014

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

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:

Asset

Estimated Useful Lives

Leasehold improvements

15 years

Machinery and equipment

10 years

Office equipment

5-10 years

Vehicles

5 years

Depreciation expense amounted to $22,955 for the 9 months ended September 30, 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 Recognition

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

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.

Go Green Global Technologies Corp.

NOTES TO FINANCIAL STATEMENTS

September 30, 2014

NOTE 2

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 June 30, 2014.

NOTE 3

ACCOUNTS RECEIVABLE

At September 30, 2014 accounts receivable consisted of the following:

2014

Trade receivables

$      47,142

Less:  Allowance for doubtful accounts

-

      Accounts receivable - net

$     47,142

It is management's judgment that all amounts are collectible.

NOTE 4

OTHER CURRENT ASSETS

Other current assets as of September 30, 2014 consisted of $87,480 in short term loans to management.

NOTE 5

PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at September 30, 2014:

2014

Equipment

$     216,311

Intellectual Property

304,050

Office equipment

8,991

Vehicles

1,500

530,852

Less:  Accumulated depreciation

(54,392)

      Property and equipment- net

$   476,460

NOTE 6

CONCENTRATION OF CREDIT RISK

With minimal sales in the 9 months ended June 30, 2014, most 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. Management believes that all of its accounts receivable are collectible. 

Go Green Global Technologies Corp.

NOTES TO FINANCIAL STATEMENTS

September 30, 2014

NOTE 7

ACCOUNTS PAYABLE

The Company has $248,166 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 boardmember. See section titled "Related Party Transactions" for more on the relationship with WTS. 

NOTE 8

NOTES PAYABLE 

2014

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.  In September of 2014, the lender agreed to extend the loan for an additional 12 months. The $35,925.65 in Notes Payable reflects the remaining principal and accrued interest outstanding.

$       35,926

   Less: Current portion

$      (35,926)

   Notes Payable- long term portion

$                 -

Scheduled maturities of notes payable are as follows:

Year ending December 31, 2014

$                 -

Year ending December 31, 2015

$       35,926

Thereafter

$                 -

$       35,926

NOTE 9

OPERATING LEASES

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 $33,107 for the 9 months ending September 30, 2014.

Minimum future payments under the operating lease are as follows:

Year ending December 31, 2014

$         6,063

Year ending December 31, 2015

$       12,125

Thereafter

-

$       18,188

Go Green Global Technologies Corp.

NOTES TO FINANCIAL STATEMENTS

September 30, 2014

NOTE 10

RELATED PARTY TRANSACTIONS

At September 30, 2014, the Company had an amount due from a shareholder in the amount of $5,000.  This amount does not have specific repayment terms and does not bear interest.

At September 30, 2014, the Company had an amount due from a shareholder and board member in the amount of $5,000.  This amount does not have specific repayment terms and does not bear interest.

At September 30, 2014, the Company had an amount due from a shareholder and executive in the amount of $36,088.  This amount does not have specific repayment terms and does not bear interest. The same executive has a loan outstanding with the company of $30,022 that was entered into in October of 2013 and bears interest.

At September 30, 2014, the Company had an amount due to a shareholder and in the amount of $35,926.

At September 30, 2014, the Company had an amount due to WTS LLC in the amount of $175,000 in connection to the Company's purchase of intellectual property. WTS is owned by multiple shareholders and a boardmember.

At September 30, 2014, the Company had an amount due from an employee in the amount of $11,370. 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 boardmember.

The Company has and expects to enter into distributor, dealer, consultant and sales commission contracts with shareholders.

During the 2nd quarter the company purchased manufacturing equipment from Sonical S.r.l, an Italian company owned by a shareholder. Sonical S.r.l. currently manufactures Go Green's Sonical devices. Go Green is in the process of moving all of the manufacturing equipment to the Oxford, CT facility. The purchase price for the equipment was $200,000.

SUBSEQUENT EVENTS

No material subsequent events have occurred at the time of this filing.