Green Endeavors Inc. (fka GRNE)

[aries4747]

Another surprising statement from GRNE Third Quarter results...

Mr. Surber continued, "If you read our Form 10Q's balance sheet carefully you should note, among other things, that the $2.2M liability for a convertible note is owed to our parent company Nexia Holdings. This is significant because no freely tradable shares will be able to hit the market under Rule 144 unless they are dribbled out (1% every 90 days which is an insignificant amount of shares in terms of dollar value) which management has no current intention of doing. Any payments on this liability have been in cash or restricted stock over the last 4 years. Theoretically, we could convert the entire debt to equity which would nearly resolve the working capital deficit and remove close to half of the liabilities on our balance sheet. My point is that the balance sheet is in pretty good shape when you take into consideration that our flagship salon was acquired at predecessor depreciated cost basis under GAAP because it was a related party transaction while the entire cost to purchase the salon was required to be recorded as a liability."