Quarterly report pursuant to Section 13 or 15(d)

Note 2 - Going Concern Considerations

Note 2 - Going Concern Considerations
6 Months Ended
Jun. 30, 2013
Note 2 - 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 applicable to its common shareholders of $2,341,305 and $823,240 for the six-months ended June 30, 2013, and June 30, 2012, respectively, has an accumulated deficit applicable to its common shareholders of $27,574,888 at June 30, 2013.  The Company also used cash in operating activities of $1,080,639 and $1,860,384 during the six-month period ended June 30, 2013 and June 30, 2012, respectively.  At June 30, 2013, the Company has negative working capital of $4,094,539 and a stockholders’ deficit attributable to its stockholders of $1,703,375.  These factors raise substantial doubt about the Company’s 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 operations, the Company has to date received $20,870,733 in capital contributions from the preferred membership interest in GCE Mexico I, LLC (“GCE Mexico”), 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.  While the Company expects to be successful in this new venture, 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 plan’s success. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.