Green Endeavors Inc. (fka GRNE)

[benosufan]

Review of 10Q

A/S is 10 Billion which is why GRNE only has a small amount of derivative liability on the balance sheet.

So GRNE files a net profit of $189,000...but not because of increased revenues. Actually revenues are less than this time last fiscal year. The gain for the previous quarter was because of old debt that removed from the books.

Note 7 – Cancellation of Convertible Note Payable

On May 12, 2006, Green borrowed $171,000 from Xing Investment Corp with a convertible promissory note. The note had accrued interest of $34,200 as of June 2, 2014 for a total of principal and accrued interest of $205,200. Green has been advised by counsel that it is no longer obligated to pay the liability as a result of the passage of time pursuant to the statute of limitations. Therefore, Green recognized a $205,200 gain from the cancellation of the debt on June 2, 2014.

While it seems honorable that they are about breaking even, a closer look reveals why they have continued operations with small net profits. They are diluting using Preferred Series B shares which convert on a massive scale (1 B share converts into $5 worth of common stock). If you want to profit here, buy the preferred series B shares, not commons IMO.

Convertible Series B Preferred Stock
Each share of Green’s Convertible Series B Preferred Stock has one vote per share and is convertible into $5.00 worth of common stock. The number of common shares received is based on the average closing bid market price of Green's common stock for the five days before conversion notice date by the shareholder. Convertible Series B Preferred Stock shareholders, at the option of Green, can receive cash or common stock upon conversion.

During the six month period ended June 30, 2014, the Board of Directors approved the conversions of 33,672 shares of Convertible Series B Preferred Stock in to 28,842,370 shares of Common Stock of the Company. The shares were converted at prices ranging from $0.00340 to $0.00646 per share based on the conversion provisions for the Series B Preferred Stock designation.

During the six month period ended June 30, 2014, the Board of Directors approved the sale of 43,333 shares of Convertible Series B Preferred Stock to three investors for $75,000.

On March 28 2014, the Board of Directors approved the issuance of a total of 189,123 shares of the Company's Convertible Preferred Series B Stock in exchange for cancellation of the principal and accrued interest of the five, $100,000 each, 8% Series A Senior Subordinated Convertible Redeemable Debentures (the "Debentures"). The Debentures were held by two unrelated parties and amounted to $500,000 in principal and $161,929 of accrued interest for a total of $661,929. the Company recognized a gain of $6,994 on the transaction.

As of June 30, 2014 and December 31, 2013, Green had 760,488 and 561,704 shares of Convertible Series B Preferred stock issued and outstanding, respectively.