The accompanying notes are an integral part
of these consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER
31, 2013 AND 2012
NOTE 1 – NATURE OF OPERATIONS
Energy Edge Technologies Corporation
(“EEDG”) was incorporated in New Jersey in January, 2004. Energy Edge Technologies Corporation is comprised of
two subsidiaries: Energy Edge Solutions (“EES”) and The Gourmet Chicken Company, Inc.(“TGCC”)
The Company acquired a 51% interest in Energy
Edge Solutions in 2012. Energy Edge Solutions provides energy engineering and services specializing in the development and implementation
of advanced turnkey projects to reduce energy losses and increase the efficiency of new and existing buildings. The Company
is comprised of professional and industrial engineers, Leadership in Energy and Environmental Design (“LEED”) Accredited
Professionals, and Green Building Coalition Certifying Agents. Energy Edge is a Clean Energy Pay for Performance Partner
and a Smart Start Building Trade Ally. EES’ custom designed projects are developed using proprietary methods and maximize
energy savings by treating an entire facility based on its unique features and electricity and gas usage.
EES applies a whole facility approach
to energy cost reduction by applying different technologies and engineering approaches to treat most of the various electrical
and gas consuming loads across facility such as lighting, HVAC, refrigeration, and production equipment. The energy projects
developed and implemented by EES are ideal for virtually any type of facility and have successfully resulted in tremendous savings
in manufacturing plants, hospitals, entertainment venues, office buildings, restaurants, warehouses, etc.
EES’ revenues come primarily from engineering
survey work and turnkey energy projects where EES takes responsibility for equipment procurement, installation labor, utility rebates,
tax incentives, pre and post survey work, waste removal, certifications, and ongoing measurement and verification of results.
During 2012, the Company acquired sixty-five
percent (65%) of the capital stock of The Dry Fried Wing Company. On March 31, 2013, the Company acquired the remaining thirty-five
percent (35%) of such stock. On April 5, 2013 the Company officially changed the name of The Dry Fried Wing Company to The Gourmet
Chicken Company, Inc.
TGCC is a newly formed combined fast casual
restaurant company in the gourmet chicken segment and restaurant management company. TGCC is primarily engaged in the business
of managing, licensing, operating, developing and franchising a system of distinctive quick-service and fast casual restaurants
in the gourmet chicken segment.
TGCC revenues will primarily be derived from
management fees, royalty fees, licensing fees and franchise fees. TGCC will also sell food, sauces, mixes and other
supplies to its franchisees/licensees.
NOTE 2 – BASIS OF PRESENTATION AND
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The Company prepares its financial statements in accordance with
accounting principles generally accepted in the United States. This basis of accounting involves the application of accrual accounting
and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The consolidated
financial statements are expressed in U.S. dollars.
Principles of consolidation
The consolidated statements include the accounts of the Company
and its two subsidiaries TGCC and EES. All inter-company transactions and balances were eliminated.
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated
financial statements and the reported amounts of revenues and expense during the period. Actual results could differ from
those estimates.
Cash and cash equivalents
The Company includes in cash and cash equivalents
all short-term, highly liquid investments that mature within three months or less of their acquisition date. Cash
equivalents consist principally of investments in interest-bearing demand deposit accounts and liquidity funds with financial
institutions and are stated at cost, which approximates fair value. As of December 31, 2013 and 2012, the Company has no
cash equivalents.
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER
31, 2013 AND 2012
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are stated at the amount the Company
expects to collect. Accounts receivable represents receivables, net of allowances for doubtful accounts. The allowance for
doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the
allowance based on historical experience and other currently available information. When a specific account is deemed
uncollectible, the account is written off against the allowance. As of December 31, 2013 and 2012, the allowance for
doubtful accounts was $0 and $0, respectively.
Property
and Equipment
Property
and equipment are stated at cost. Depreciation is computed over the estimated useful lives of the related assets using the straight-line
method for financial reporting purposes.
Expenditures
for normal repairs and maintenance are charged to expense as incurred. Significant renewals and improvements are capitalized. The
costs and related accumulated depreciation of assets retired or otherwise disposed of are eliminated from the accounts, and any
resulting gain or loss is recognized in the year of disposal.
Derivatives
All derivatives are recorded at fair value
on the balance sheet. Fair values for securities traded in the open market and derivatives are based on quoted market prices. Where
market prices are not readily available, fair values are determined using market based pricing models incorporating readily observable
market data and requiring judgment and estimates.
Fair Value of Financial Instruments
Fair value is defined as the price that would
be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. A fair value
hierarchy has been established for valuation inputs that gives the highest priority to quoted prices in active markets for identical
assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:
|
•
|
Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
|
|
•
|
Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.
|
|
•
|
Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.
|
Income taxes
Deferred tax assets and liabilities are recognized for
future tax consequences attributable to differences between financial statement carrying amounts of existing assets and
liabilities and their respective tax bases. In addition, the Company recognizes future tax benefits, such as carryforwards,
to the extent that realization of such benefits is more likely than not and that a valuation allowance is provided when it is
more likely than not that some portion of the deferred tax asset will not be realized. Company’s net operating losses
carryforwards are subject to Section 382 limitation.
Revenue recognition
The Company recognizes revenue when it is realized or
realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an
arrangement, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured.
Stock-Based Compensation
The cost of employee services received in exchange for stock is
measured based on the grant-date fair value (with limited exceptions). That cost is to be recognized over the period during which
an employee is required to provide service in exchange for the award (usually the vesting period). The fair value of immediately
vested shares is determined by reference to quoted prices for similar shares, and the fair value of shares issued subject to a
service period is estimated using an option-pricing model. Excess tax benefits, for which no valuation allowance is required, are
recognized as additions to paid-in-capital.
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER
31, 2013 AND 2012
The Company also makes stock awards to non-employees for goods and
services acquired by the Company. These awards are generally recorded at the market price of the shares issued on the date the
shares are issued.
Loss per common share
Basic loss per common share (“EPS”) is computed by dividing
net loss available to common stockholders by the weighted average number of common shares outstanding during the period, excluding
the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock
outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock
price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants),
and convertible debt or convertible preferred stock, using the if-converted method. EPS excludes all potential dilutive shares
of common stock if their effect is anti-dilutive. There were no dilutive securities at December 31, 2013 and 2012.
Subsequent Events
The Company’s
management reviewed all material events from December 31, 2013 through the issuance date of this report for disclosure consideration.
Recent Accounting Pronouncements
Energy Edge does not expect the adoption of recently issued accounting pronouncements to have a significant
impact on the Company’s results of operations, financial position, or cash flows.
NOTE 3 –GOING CONCERN
The Company has limited working capital,
had a working capital deficit at December 31, 2013 and has suffered significant losses from operations. These factors
create substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not
include any adjustment that might be necessary if the Company is unable to continue as a going concern.
The ability of Energy Edge Technologies Corporation
to continue as a going concern is dependent on the Company generating cash from the sale of its common stock, obtaining debt financing,
attaining future profitable operations, acquiring or merging with a profitable company, and/or developing successful business operations
in other industries through investment in related party ventures. Management’s plans include selling its equity securities
and obtaining debt financing to fund its capital requirements; however, there can be no assurance the Company will be successful
in these efforts.
NOTE 4 –PREPAID EXPENSES
Prepaid expenses consisted of the following at December 31, 2013 and 2012:
|
|
December 31, 2013
|
|
December 31, 2012
|
Prepaid project expenses
|
|
$
|
29,950
|
|
|
$
|
29,950
|
|
Prepaid consulting expense
|
|
|
225,033
|
|
|
|
270,492
|
|
Total prepaid expenses
|
|
$
|
254,983
|
|
|
$
|
300,442
|
|
Prepaid Project Expenses
Prepaid project expenses consist of monies expended for project
equipment for a project temporarily put on hold.
Prepaid Consulting Expenses
The Company has retained a number of consultants. These
consultants are paid in cash and/or issuance of Company stock. Consultants were issued 2,500,000 shares and 16,000,000 shares
of common stock valued at $37,676 and $668,375 during the years ended December 31, 2013 and 2012, respectively. The
consulting fees are being amortized over the terms of the contracts.
NOTE 5 – PROPERTY AND EQUIPMENT
The office equipment presently owned by the Company is being depreciated over an estimated useful life
of five years. Depreciation expense for years ended December 31, 2013 and 2012 was $1,716 and $1,717, respectively.
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER
31, 2013 AND 2012
NOTE 6 – RELATED PARTY TRANSACTIONS
Related party payables and loans totaling $354,641
and $30,696 at December 31, 2013 and 2012, respectively, are owed to various related parties of the Company for compensation and
reimbursement of expenses incurred on behalf of the Company.
Related party loans are unsecured, non-interest bearing and have
no specific terms of repayment.
NOTE 7 – CONVERTIBLE NOTE PAYABLE AND DERIVATIVE
LIABILITY
On May 13, 2013, the Company issued a convertible promissory note
to a third party, with a principal amount of $50,000. This note is due and payable in full on May 14, 2015, and bears
interest at 6% per annum. At any time prior to the payment in full of the entire balance of the note, the creditor has
the option of converting all or any portion of the unpaid balance of the note into shares of common stock at a conversion price
equal to seventy percent of the lowest closing bid price of the common stock for any of the five trading days prior to and including
the conversion date.
The Company evaluated the terms of the note and concluded that since
the conversion price was not fixed, and the number of shares of the Company’s common stock that are issuable upon the conversion
of the convertible promissory note is indeterminable until such time as the Creditor elects to convert to common stock, the Company
concluded that the embedded conversion option created a derivative liability. The Company measured the derivative liability using
the input attributes disclosed below and recorded a derivative liability of $53,348 as of May 13, 2013.
During 2013, the Creditor elected to convert $8,400 of the
outstanding balance into 6,369,314 shares of the Company’s common stock, of which 5,000,000 shares were issued as of
December 31, 2013, and the remaining shares were accrued as a common stock payable of $7,400.
On December 31, 2013, the Company re-measured the derivative
liability using the input attributes below and determined the derivative liability value to be $57,439. Change in FV of
derivative of $4,091 was recorded as of December 31, 2013 and included in the statement of operations in order to adjust the
derivative liability to the re-measured value.
|
|
May 13, 2013
|
|
December 31, 2013
|
Stock price
|
|
$
|
.0099
|
|
|
$
|
.0077
|
|
Exercise price
|
|
$
|
.009044
|
|
|
$
|
.005530
|
|
Shares issuable upon conversion
|
|
|
5,528,527
|
|
|
|
7,522,604
|
|
Expected dividend yield
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
Expected life (years)
|
|
|
2.00
|
|
|
|
1.37
|
|
Risk-free interest rate
|
|
|
0.24
|
%
|
|
|
0.38
|
%
|
Expected volatility
|
|
|
313.50
|
%
|
|
|
441.00
|
%
|
A debt discount of $50,000 related to the embedded
conversion option was recorded at date of note issuance, and is being expensed over the life of the loan. For the year ended
December 31, 2013, amortization of $15,625 has been recorded, resulting in a remaining unamortized discount of $34,375 at
December 31, 2013.
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER
31, 2013 AND 2012
On September 30, 2013, the Company issued a convertible promissory
note to a third party, with a principal amount of $53,000. This note is due and payable in full on June 24, 2014, and
bears interest at 8% per annum. At any time beginning on the date that is 180 days after the note date and until the
maturity date, the creditor has the option of converting all or any portion of the unpaid balance of the note into shares of common
stock at a conversion price equal to fifty eight percent of the average of the three lowest closing bid price of the common stock
for any of the ten trading days prior to the conversion date.
The Company evaluated the terms of the note and concluded that since the conversion price was not fixed, and
the number of shares of the Company’s common stock that are issuable upon the conversion of the convertible promissory note
is indeterminable until such time as the Creditor elects to convert to common stock, the Company concluded that the embedded conversion
option created a derivative liability. The Company measured the derivative liability using the input attributes disclosed below
and recorded a derivative liability of $88,930 as of September 30, 2013.
On December 31, 2013, the Company re-measured the
derivative liability using the input attributes below and determined the derivative liability value to be $85,816. Change in
fair value of derivative of $3,114 was recorded as of December 31, 2013 and included in the statement of operations in order
to adjust the derivative liability to the re-measured value.
|
|
September 30, 2013
|
|
December 31, 2013
|
Stock price
|
|
$
|
.0124
|
|
|
$
|
.0077
|
|
Exercise price
|
|
$
|
.007057
|
|
|
$
|
.004331
|
|
Shares issuable upon conversion
|
|
|
7,510,628
|
|
|
|
12,237,754
|
|
Expected dividend yield
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
Expected life (years)
|
|
|
0.75
|
|
|
|
0.50
|
|
Risk-free interest rate
|
|
|
0.07
|
%
|
|
|
0.10
|
%
|
Expected volatility
|
|
|
434.42
|
%
|
|
|
441.00
|
%
|
A debt discount of $53,000 related to the embedded conversion option
was recorded at date of note issuance, and is being expensed over the life of the loan. For the year ended December 31, 2013, amortization
of $17,667 has been recorded, resulting in a remaining unamortized discount of $35,333 at December 31, 2013.
On December 31, 2013, the Company issued a convertible promissory
note to a third party, with a principal amount of $42,500. This note is due and payable in full on October 3, 2014, and bears interest
at 8% per annum. At any time beginning on the date that is 180 days after the note date and until the maturity date, the creditor
has the option of converting all or any portion of the unpaid balance of the note into shares of common stock at a conversion price
equal to fifty eight percent of the average of the three lowest closing bid price of the common stock for any of the ten trading
days prior to the conversion date.
The Company evaluated the term of the note and concluded that since
the conversion price was not fixed, and the number of share of the Company’s common stock that are issuable upon the conversion
of the convertible promissory note is indeterminable until such time as the Creditor elects to convert to common stock, the Company
concluded that the embedded conversion option created a derivative liability. The Company measured the derivative liability using
the input attributes disclosed below and recorded a derivative liability of $72,462 as of December 31, 2013.
|
|
December 31, 2013
|
Stock price
|
|
$
|
.0077
|
|
Exercise price
|
|
$
|
.004331
|
|
Shares issuable upon conversion
|
|
|
9,813,293
|
|
Expected dividend yield
|
|
|
0.00
|
%
|
Expected life (years)
|
|
|
0.76
|
|
Risk-free interest rate
|
|
|
0.10
|
%
|
Expected volatility
|
|
|
441.00
|
%
|
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER
31, 2013 AND 2012
A debt discount of $42,500 related to the embedded conversion option
was recorded at date of note issuance, and is being expensed over the life of the loan. For the year ended December 31, 2013, amortization
of $0 has been recorded, resulting in a remaining unamortized discount of $42,500 at December 31, 2013.
NOTE 8 – COMMITMENTS AND CONTINGENCIES
The Company neither owns nor leases any real property as of December
31, 2013 and 2012. An officer has provided office services without charge. There is no obligation for the officer to continue this
arrangement. Such costs are immaterial to the financial statements and accordingly are not reflected herein.
NOTE 9 – INCOME TAXES
For the years ended December 31, 2013 and 2012, the Company has incurred
a net loss and, therefore, has no tax liability.
As of December 31, 2013, the Company had net operating loss
carry forwards of approximately $4,446,580 that may be available to reduce future years’ taxable income through 2033.
Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as
their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the
deferred tax asset relating to these tax loss carry-forwards.
The cumulative tax effect at the expected rate of 34% of significant
items comprising our net deferred tax amount is as follows:
|
|
2013
|
|
2012
|
Deferred tax asset attributable to:
|
|
|
|
|
|
|
|
|
Net operating loss carryover
|
|
$
|
1,511,837
|
|
|
$
|
940,600
|
|
Less: valuation allowance
|
|
|
(1,511,837
|
)
|
|
|
(940,600
|
)
|
Net deferred tax asset
|
|
$
|
—
|
|
|
$
|
—
|
|
Due to the change in ownership provisions of the Tax Reform
Act of 1986, net operating loss carry forwards of $4,446,580 for federal income tax reporting purposes are subject to annual
limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future
years.
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER
31, 2013 AND 2012
NOTE 10 – EQUITY TRANSACTIONS
During the year ended December 31, 2013, the
Company:
|
-
|
sold 18,533,334 shares of common stock for cash of $289,114;
|
|
-
|
issued 88,200,000 shares of common stock for services with a fair value of $921,375;
|
|
-
|
issued 2,972,623 shares of common stock for settlement of payables of $156,810;
|
|
-
|
retired 2,000,000 shares of common stock;
|
|
-
|
issued 5,000,000 shares of common stock for conversion of debt of $1,000.
|
Following are the Company’s capital stock
transactions for the year ended December 31, 2012:
|
-
|
On January 23, 2012, the Company issued 1,500,000 shares of stock valued at $15,000 for business
consulting services.
|
|
-
|
On May 3, 2012, the Company issued 2,500,000 shares of stock valued at $39,375 for legal services.
|
|
-
|
On May 7, 2012, the Company issued 3,000,000 shares of stock valued at $105,000 for business consulting
services.
|
|
-
|
On May 14, 2012, the Company issued 2,000,000 shares of stock valued at $52,500 for business consulting
services.
|
|
-
|
On May 17, 2012, the Company sold 1,000,000 shares of common stock at $.01 per share under a private
placement to an unrelated third party for total proceeds of $10,000.
|
|
-
|
On May 25, 2012, 10,000 shares of stock issued for consulting services in 2011 were returned to
the Company.
|
|
-
|
On June 5, 2012, the Company sold 500,000 shares of common stock at $.01 per share under a private
placement to an unrelated third party for total proceeds of $5,000.
|
|
-
|
On June 6, 2012, the Company sold 1,666,667 shares of common stock at $.0075 per share under a
private placement to an unrelated third party for total proceeds of $12,500.
|
|
-
|
On June 6, 2012, the Company issued 500,000 shares of stock valued at $50,000 for business consulting
services.
|
|
-
|
On June 6, 2012, the Company sold 2,000,000 shares of common stock at $.015 per share under a private
placement to an unrelated third party for total proceeds of $30,000.
|
|
-
|
On June 17, 2012, the Company issued 200,000 shares of stock valued at $9,000 for business consulting
services.
|
|
-
|
On July 20, 2012, the Company issued 500,000 shares of stock valued at $65,000 for business consulting
services.
|
|
-
|
On August 8, 2012, the Company issued 500,000 shares of stock valued at $50,000 for business consulting
services.
|
|
-
|
On August 9, 2012, the Company issued 1,000,000 shares of stock valued at $90,000 for business
consulting services.
|
|
-
|
On August 14, 2012, the Company issued 1,000,000 shares of stock valued at $67,500 for legal services.
|
|
-
|
On August 28, 2012, 2,000,000 shares of stock issued for consulting services in 2011 were returned
to the Company.
|
|
-
|
On October 26, 2012, the Company sold 750,000 shares of common stock at $.0073 per share under
a private placement to an unrelated third party for total proceeds of $5,500.
|
|
-
|
On November 21, 2012, 28,000,000 shares of stock previously held by former officers of the Company
were surrendered.
|
|
-
|
On November 29, 2012, the Company sold 1,500,000 shares of common stock at $.0167 per share under
a private placement to an unrelated third party for total proceeds of $25,000.
|
|
-
|
On November 29, 2012, the Company issued 2,000,000 shares of stock valued at $80,000 for business
consulting services.
|
|
-
|
On December 10, 2012, the Company issued 300,000 shares of stock valued at $15,000 for business
consulting services.
|
|
-
|
On December 12, 2012, the Company issued 1,000,000 shares of stock valued at $30,000 for business
consulting services.
|
|
-
|
On December 21, 2012, the Company sold 2,000,000 shares of common stock at $.005 per share under
a private placement to an unrelated third party for total proceeds of $10,000.
|
|
-
|
On December 27, 2012, the Company sold 1,500,000 shares of common stock at $.0167 per share under
a private placement to an unrelated third party for total proceeds of $25,000.
|
As of December 31, 2013 and 2012, the Company
had no stock warrants or stock options outstanding.
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER
31, 2013 AND 2012
NOTE 11– BUSINESS SEGMENTS
The Company is made up of three entities in
which Energy Edge Technologies Corporation is the Parent Entity. The Company owned a sixty-five percent interest in The Gourmet
Chicken Company during the first quarter, but acquired the remaining thirty-five percent of the stock of The Gourmet Chicken Company
as of March 31, 2013. Fifty-one percent of the outstanding stock of Energy Edge Solutions, Inc. is owned by the Company. Energy
Edge Solutions, Inc. had no operating activity during the current year.
The balance sheet as of December 31, 2013 and 2012 and the
statement of operations information for the years ended December 31, 2013 and 2012 of each entity is presented in US Dollars
as follows:
|
|
As of December 31,
2013
|
|
|
As of December 31,
2012
|
|
|
|
EEDG
|
|
|
TGCC
|
|
|
EES
|
|
|
Total
|
|
|
EEDG
|
|
|
TGCC
|
|
|
EES
|
|
|
Total
|
|
Current Assets
|
|
$
|
300,147
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
300,147
|
|
|
$
|
295,442
|
|
|
$
|
23,984
|
|
|
$
|
(84
|
)
|
|
$
|
319,342
|
|
Fixed Assets
|
|
|
3,329
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,329
|
|
|
|
5,046
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,046
|
|
Other Assets
|
|
|
9,897
|
|
|
|
4,194
|
|
|
|
—
|
|
|
|
14,091
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total Assets
|
|
$
|
313,373
|
|
|
$
|
4,194
|
|
|
$
|
—
|
|
|
$
|
317,567
|
|
|
$
|
300,488
|
|
|
$
|
23,984
|
|
|
$
|
(84
|
)
|
|
$
|
324,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
$
|
824,143
|
|
|
$
|
1,600
|
|
|
$
|
114
|
|
|
$
|
825,857
|
|
|
$
|
449,652
|
|
|
$
|
50,094
|
|
|
$
|
114
|
|
|
$
|
499,860
|
|
Long Term Liabilities
|
|
|
64,664
|
|
|
|
—
|
|
|
|
—
|
|
|
|
64,664
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Intercompany
|
|
|
(379,770
|
)
|
|
|
379,675
|
|
|
|
95
|
|
|
|
—
|
|
|
|
(89,710
|
)
|
|
|
89,200
|
|
|
|
510
|
|
|
|
—
|
|
Stockholders’ Equity
|
|
|
(195,664
|
)
|
|
|
(377,081
|
)
|
|
|
(209
|
)
|
|
|
(572,954
|
)
|
|
|
(59,455
|
)
|
|
|
(115,310
|
)
|
|
|
(708
|
)
|
|
|
(175,472
|
)
|
Total Liabilities and
Stockholder’s Equity
|
|
$
|
313,373
|
|
|
$
|
4,194
|
|
|
$
|
—
|
|
|
$
|
317,567
|
|
|
$
|
300,487
|
|
|
$
|
23,984
|
|
|
$
|
(84
|
)
|
|
$
|
324,388
|
|
|
|
For the Year Ended
December 31, 2013
|
|
For the Year Ended
December 31, 2012
|
|
|
EEDG
|
|
TGCC
|
|
EES
|
|
Total
|
|
EEDG
|
|
TGCC
|
|
EES
|
|
Total
|
Revenues
|
|
$
|
2,040
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,040
|
|
|
$
|
451,956
|
|
|
$
|
348
|
|
|
$
|
—
|
|
|
$
|
452,304
|
|
Costs of Revenues
|
|
|
(2,471
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,471
|
)
|
|
|
(423,718
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(423,718
|
)
|
Gross Profit (Loss)
|
|
|
(431
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(431
|
)
|
|
|
28,238
|
|
|
|
348
|
|
|
|
—
|
|
|
|
28,586
|
|
Operating Expenses
|
|
|
(1,397,824
|
)
|
|
|
(261,771
|
)
|
|
|
(11
|
)
|
|
|
(1,659,606
|
)
|
|
|
(682,237
|
)
|
|
|
(117,658
|
)
|
|
|
(198
|
)
|
|
|
(800,093
|
)
|
Other Expenses
|
|
|
(105,744
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(105,744
|
)
|
|
|
(12,619
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(12,619
|
)
|
Net Loss before
Non-controlling Interest
|
|
|
(1,503,999
|
)
|
|
|
(261,771
|
)
|
|
|
(11
|
)
|
|
|
(1,765,781
|
)
|
|
|
(666,618
|
)
|
|
|
(117,310
|
)
|
|
|
(198
|
)
|
|
|
(784,126
|
)
|
Non-controlling Interest
|
|
|
56,115
|
|
|
|
—
|
|
|
|
—
|
|
|
|
56,115
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Net Loss
|
|
$
|
(1,447,884
|
)
|
|
$
|
(261,771
|
)
|
|
$
|
(11
|
)
|
|
$
|
(1,709,666
|
)
|
|
$
|
(666,618
|
)
|
|
$
|
(117,310
|
)
|
|
$
|
(198
|
)
|
|
$
|
(784,126
|
)
|
NOTE 12–SUBSEQUENT EVENTS
During 2014, one of the Company’s creditors elected to
convert $15,224 of the outstanding balance into 23,917,392
shares of the Company’s common stock.