DALLAS--(BUSINESS WIRE)--Green Automotive Company Corporation (OTC:GACR) yesterday released its Financial Statements and Statement of Operations for the Company’s 1st Quarter ended March 31, 2011 together with its quarterly updated discussion of its operations.
According to information posted this morning on www.otcmarkets.com the Company reported a loss of $202,952 for the quarter ended March 31, 2011 compared to a loss last year of $883,831 for the quarter ended March 31, 2010, an improvement of $680,879 over 2010. The loss resulted in a reduction in the Company’s Stockholders’ Equity of $202,952 but the Company’s Total Assets increased by $225,468 to $1,523,354.
“Overall,” said Fred Luke, President of Green Automotive, “the reduction of our overhead and re-direction of resources to the continued homologation of the SUV, is in line with our revised budget and timeline for final testing and delivery to the market. And, as the Company has disclosed in our all its filings, the on-going homologation and creation of the necessary distribution infrastructure takes a sizeable investment, with virtually no off-setting income. However, due to our niche and choice to be an importer/distributer as opposed to a manufacturer, we are forecasting revenue to start very soon after the first new vehicles are imported, staged and processed and released to the Company’s independent retail dealership network for sale to U.S. consumers: which is just one of the reasons we proposed to purchase the assets of StarPoint USA Inc., last month.”
Mr. Luke went on to say that “recent criticism by a financial writer who represents to be closely following this newly developing Electric Vehicle industry, appears to me to be doing the subject matter and his readers a great disservice by not conducting any real due diligence, and therefore lacks the facts to substantiate his negative editorial comments. On the other hand, perhaps he did conduct the necessary investigative work but simply chose not to tell the whole story as it might undermine his agenda and, in turn, undermine his creditability. Aside from getting the Company’s name correct, and simply restating the Company’s recent announcements, it appears to me that very little effort was made to conduct proper due diligence before writing such an negative article.“
Mr. Luke went on to say, “The only thing I saw in this article that I can agree with is the fact that lately the Company has been the target of considerable short-selling, and when caught, those selling without having the shares to cover their prior sale usually find themselves chasing the price up. As for the rest of the article, at best it’s based upon incomplete information and, in some cases, patently false statements which simply should not have been made. This reporter's statement that he was ‘in the process of inquiring about this and several other issues, most of which I bring up in this article, but the company [Green Automotive Company] has yet to respond’, is comical. Green Automotive Company’s records don’t show any such attempted contact, either by telephone or email, and what does ‘in the process’ mean: did he attempt to contact the Company or not. Seems to me he should have tried to confirm his ‘facts’ before publishing conclusions based upon limited knowledge of the Company and its management. For that matter this reporter could be collaborating with some of the short-sellers. Why else publish something which is full of negative mis-statements and a painfully incomplete analysis of all of the ‘publicly-accessible news’ and other publicly-accessible facts, unless you really didn’t care about doing ‘a good job maintaining balance’. I’ll let the regulators the Company’s attorneys pursue this as we have other, more important things to deal with related to the timely launch of the company’s All-Electric SUV late this year”.
About Green Automotive Company: Green Automotive Company Corporation is U.S. public company involved in the import and distribution of Eco-friendly vehicles in the U.S. The Company has an exclusive importer/distributor agreement to market the All-Electric SUV and MPV All-Electric vehicles throughout the United States. The Company's shares are on the OTC Market Tier--OTC Pink Current under the symbol "GACR". Visit www.usaelectricauto.com or write to info@usaelectricauto.com.
Safe Harbor Statement - This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual or future results may differ materially from those anticipated depending on a variety of factors, including continued maintenance of favorable license arrangements, success of market research identifying new product opportunities, successful introduction of new products, continued product innovation, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Green Automotive Company Corporation incorporates by reference its disclosure and financial statements posted on www.otcmarkets.com, and does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.
| GREEN AUTOMOTIVE COMPANY CORPORATION | ||||||||||||||||
| (A Development Stage Company) | ||||||||||||||||
| Statements of Operations | ||||||||||||||||
| For the Three Months Ended March 31, 2011 and 2010 and for the Development | ||||||||||||||||
| Stage Period April 28, 2009 Through March 31, 2011 | ||||||||||||||||
| Development | ||||||||||||||||
| Stage Period | ||||||||||||||||
| April 28, 2009 | ||||||||||||||||
| Through | ||||||||||||||||
| March 31, |
March 31, |
|||||||||||||||
| 2011 | 2010 | 2011 | ||||||||||||||
| Revenues | $ | - | $ | - | $ | - | ||||||||||
| Cost of Goods Sold | - | - | - | |||||||||||||
| Gross Profit | - | - | - | |||||||||||||
| Operating Expenses | ||||||||||||||||
| Depreciation and amortization | 82,605 | 8,610 | 262,823 | |||||||||||||
| General and administrative | 112,847 | 871,798 | 2,009,549 | |||||||||||||
| 195,452 | 880,408 | 2,272,372 | ||||||||||||||
| (Loss) before other expenses | (195,452 | ) | (880,408 | ) | (2,272,372 | ) | ||||||||||
| Other (Expenses) | ||||||||||||||||
| (Loss) on disposal of vehicle | - | - | (13,871 | ) | ||||||||||||
| Interest expense | (7,500 | ) | (3,423 | ) | (19,003 | ) | ||||||||||
| (7,500 | ) | (3,423 | ) | (32,874 | ) | |||||||||||
| (Loss) before income taxes | (202,952 | ) | (883,831 | ) | (2,305,246 | ) | ||||||||||
| Income taxes | - | - | - | |||||||||||||
| Net (Loss) | $ | (202,952 | ) | $ | (883,831 | ) | $ | (2,305,246 | ) | |||||||
| (Loss) per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | |||||||
| Weighted average shares | 271,750,110 | 240,992,611 | 235,907,397 | |||||||||||||