Going Concern Considerations
|3 Months Ended
Jun. 30, 2012
|Going Concern Considerations:
|Going Concern Considerations
Note 2 Going Concern Considerations
The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the accompanying consolidated financial statements, the Company incurred losses from continuing operations of $823,240 and of $1,105,593 for the six-months ended June 30, 2012 and June 30, 2011 respectively, and has an accumulated deficit applicable to its common shareholders of $26,706,213 at June 30, 2012. The Company also used cash in operating activities of $1,860,384 and $1,762,783 during the six-month periods ended June 30, 2012 and June 30, 2011, respectively. At June 30, 2012, the Company has negative working capital of $933,000 and a stockholders deficit attributable to its stockholders of $1,874,014. These factors raise substantial doubt about the Companys ability to continue as a going concern.
The Company commenced its new business related to the cultivation and production of oil from the seed of the Jatropha plant in September 2007. Management plans to meet its cash needs through various means including securing financing, entering into joint ventures, and developing the current business model. In order to fund its new operations, the Company has received $17,198,358 in capital contributions from the preferred membership interest in GCE Mexico I, LLC, and has issued mortgages in the total amount of $5,110,189 for the acquisition of land. The Company is developing the new business operation to participate in the rapidly growing bio-diesel industry. The Company continues to expect to be successful in this new venture, but there is no assurance that its business plan will be economically viable. The ability of the Company to continue as a going concern is dependent on that plans success. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.