Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Document and Entity Information | ' |
Entity Registrant Name | 'XTREME GREEN ELECTRIC VEHICLES INC. |
Document Type | '10-Q |
Document Period End Date | 31-Mar-14 |
Amendment Flag | 'false |
Entity Central Index Key | '0001392477 |
Current Fiscal Year End Date | '--12-31 |
Entity Common Stock, Shares Outstanding | 40,500,000 |
Entity Filer Category | 'Smaller Reporting Company |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Entity Well-known Seasoned Issuer | 'No |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Entity Public Float | $0 |
XTREME_GREEN_PRODUCTS_INC_Cond
XTREME GREEN PRODUCTS INC.- Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Current Assets: | ' | ' | ||
Cash | $307,861 | $261,436 | ||
Accounts receivable | 222,215 | [1] | 87,316 | [1] |
Inventory | 345,500 | 408,287 | ||
Other current assets | 227,325 | [2] | 122,423 | [2] |
Total current assets | 1,102,901 | 879,462 | ||
Property and equipment, net | 240,188 | 162,953 | ||
Other assets | 100,000 | 100,000 | ||
TOTAL ASSETS | 1,443,089 | 1,142,415 | ||
Current liabilities: | ' | ' | ||
Accounts payable and accrued expenses | 185,752 | 883,985 | ||
Accrued expenses- related parties | ' | 704,580 | ||
Accrued interest | ' | 115,520 | ||
Accrued interest-related parties | ' | 284,894 | ||
Convertible debt- related party, net of discount | ' | 3,513,500 | ||
Convertible debt- other, net of discount | ' | 71,303 | ||
Customer deposits | ' | 367,900 | ||
Current portion of long-term debt | 125,397 | 242,190 | ||
Stockholder loans | 2,096 | 374,587 | ||
Total current liabilities | 313,245 | 6,558,459 | ||
Deferred rent | 25,778 | 25,778 | ||
Note payable post petition creditor | 62,677 | ' | ||
Extended warranty reserve | 15,697 | 3,976 | ||
Total liabilities | 417,397 | 6,588,213 | ||
Stockholders' equity (deficit): | ' | ' | ||
Common stock | ' | [1] | 4,846 | [1] |
Common stock payable | 40,500 | ' | ||
Additional paid-in capital | 12,222,917 | 5,871,900 | ||
Accumulated deficit | -11,237,725 | -11,322,544 | ||
Total stockholders' equity (deficit) | 1,025,692 | -5,445,798 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $1,443,089 | $1,142,415 | ||
[1] | Net of allowance of $9,700 | |||
[2] | $0.001 par value, 100,000,000 shares authorized; 40,500,000 and 48,463,370 shares issued and outstanding |
Statement_of_Financial_Positio
Statement of Financial Position - Parenthetical (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position | ' | ' |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 40,500,000 | 48,463,370 |
Common Stock, Shares Outstanding | 40,500,000 | 48,463,370 |
XTREME_GREEN_PRODUCTS_INC_Cond1
XTREME GREEN PRODUCTS INC. Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Statement | ' | ' |
Sales, net | $342,731 | $31,709 |
Total revenue | 342,731 | 31,709 |
Cost of sales (exclusive of depreciation expense) | 355,412 | 5,167 |
Gross margin | -12,681 | 26,542 |
Costs and expenses: | ' | ' |
General and administrative | 387,496 | 138,703 |
Sales and marketing | 73,184 | ' |
Interest expense | 13,398 | 73,683 |
Total costs and expenses | 474,078 | 212,386 |
Net loss from operations | -486,759 | -185,844 |
Extraordinary costs and expenses: | ' | ' |
Gain realized from Chapter 11 Reorganization | 571,578 | ' |
Net income (loss) before provision for income taxes | 84,819 | -185,844 |
Provision for income taxes | ' | ' |
Net Loss | $84,819 | ($185,844) |
Per share information - basic and diluted: | ' | ' |
Loss per common share | $0 | $0 |
Weighted average common shares outstanding | 44,214,496 | 48,463,370 |
XTREME_GREEN_PRODUCTS_INC_Cons
XTREME GREEN PRODUCTS INC. Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net Loss | $84,819 | ($185,844) |
Adjustment to reconcile net income (loss) to net cash used in operating activities: | ' | ' |
Stock-based compensation | ' | 15,476 |
Depreciation | 15,523 | 14,982 |
Accretion of discount on convertible debts | ' | 2,773 |
Gain realized from Chapter 11 Reorganization, increase decrease | -571,578 | ' |
Changes in operating assets and liabilities: | ' | ' |
Increase in accounts receivable | -134,800 | ' |
Decrease in inventory | 61,542 | 4,905 |
(Increase) decrease in other current assets | -88,156 | 8,748 |
(Decrease) increase in accounts payable and accrued expenses | -185,842 | 131,489 |
Decrease in accrued expenses, related party | -50,279 | -894 |
Decrease in accrued interest, related party | -22,859 | ' |
Increase in warranty reserve | 7,297 | ' |
Increase in extended warranty | 11,722 | 2,500 |
Decrease in customer deposits | -38,975 | -17,999 |
Net Cash used in Operating Activities | -911,586 | -23,864 |
Cash Flows From Investing Activities | ' | ' |
Purchase of property and equipment | -92,752 | ' |
Net cash used in investing activities | -92,752 | ' |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock | 500,000 | ' |
Proceeds from long-term debt | 83,634 | 24,500 |
Proceeds from convertible debt, related party | 500,000 | ' |
Repayment of convertible debt | -15,371 | ' |
Repayment of long-term debt | ' | -10,633 |
Stockholders loans, net | -17,500 | 9,997 |
Net Cash provided by financing activities | 1,050,763 | 23,864 |
Net increase in cash | 46,425 | ' |
CASH, BEGINNING OF PERIOD | 261,436 | ' |
CASH, END OF PERIOD | 307,861 | ' |
Supplemental Cash Flow Information: | ' | ' |
Cash paid for interest | ' | ' |
Cash paid for income taxes | ' | ' |
Non Cash Investing and Financing Activities: | ' | ' |
Accounts payable and accrued expenses exchanged for stock | 515,391 | ' |
Accrued expenses - related party exchanged for stock | 654,301 | ' |
Accrued interest - exchanged for stock | 115,520 | ' |
Accrued interest - related party exchanged for stock | 262,035 | ' |
Convertible debt - related party exchanged for stock | 4,013,500 | ' |
Convertible debt - other exchanged for stock | 55,932 | ' |
Customer deposits exchanged for stock | 70,356 | ' |
Long-term debt exchanged for stock | 137,750 | ' |
Stockholder loans to be exchanged for stock | $354,991 | ' |
1_Basis_of_Presentation
(1) Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
(1) Basis of Presentation | ' |
(1) Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and Rule 8.03 of Regulation SX. They do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. | |
The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. For further information, refer to the consolidated financial statements of the Company as of and for the year ended December 31, 2013, on Form 10-K, including notes thereto. |
2_Chapter_11_Proceedings
(2) Chapter 11 Proceedings | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
(2) Chapter 11 Proceedings | ' |
(2) Chapter 11 Proceedings | |
On August 22, 2013 (the Petition Date), Xtreme Green Products, Inc. (the “Company”) filed a voluntary petition (the “Chapter 11 Case”) for relief under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Nevada (the “Bankruptcy Court”). The Chapter 11 Case was administered under Case No. BK-S-13-17266-MKN. | |
On January 29, 2014 (the “Confirmation Date”), the Bankruptcy court entered an Order Confirming the company’s First Amended Plan of reorganization (the “Plan”) under Chapter 11 of the Bankruptcy Code. The Bankruptcy Court ordered the Chapter 11 closed as of February 28, 2014. |
3_Earnings_Per_Share
(3) Earnings Per Share | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
(3) Earnings Per Share | ' |
(3) Earnings per Share | |
The Company calculates net income (loss) per share as required by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 260, "Earnings per Share." Basic earnings” (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. |
4_Basis_of_Reporting
(4) Basis of Reporting | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
(4) Basis of Reporting | ' |
(4) Basis of Reporting | |
The Company’s financial statements have been prepared in accordance with Financial Accounting Standards Board (FASB), Accounting standards codification (ASC) Topic 852, “Reorganizations”, which requires that financial statements for periods subsequent to the Chapter 11 bankruptcy proceedings distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the company’s business. Accordingly, certain income, expenses, realized gains and losses and provisions for losses that were realized or incurred in the Chapter 11 bankruptcy are recorded as reorganization items on our statement of operations. | |
On February 28, 2014, the effective date of the emergence from bankruptcy, we did not meet the requirements under ASC Topic 852 to adopt fresh start accounting. Fresh start accounting requires the debtor to use current fair values in its balance sheet for both assets and liabilities and to eliminate all prior earnings or deficits. The two requirements to fresh start accounting are: | |
· The organization value of the debtor’s assets immediately before the date of confirmation of the plan or reorganization is less than the total of all post-petition liabilities and allowed claims; and | |
· The holders of existing voting shares immediately before confirmation of the plan of reorganization receive less than 50% of the voting shares upon emergence. | |
These requirements are referred to as the “fresh start applicability test”. At February 28, 2014, our fresh start calculation indicated that we did not meet the requirements to adopt fresh start accounting because the reorganization value of the company’s assets exceeded the total of post-petition liabilities and allowed claims and the holders of existing voting shares immediately before confirmation of the plan of reorganization received more than 50% of the voting shares upon emergence. | |
The Company incurred net losses from inception through March 31, 2014; aggregating $11,237,725 and has working capital and stockholder earnings of $789,656 and $1,025,692 at March 31, 2014. | |
The Company’s ability to continue as a going concern is contingent upon its ability to secure additional financing, increase ownership equity and develop profitable operations. In addition, the Company’s ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrance into established markets and the competitive environment in which the Company operates. | |
The Company is actively pursuing financing for its operations and seeking additional private investments. In addition, the Company is seeking to expand its revenue base and product distribution. Failure to secure such financing or to raise additional equity capital and to expand its revenue base may result in the Company depleting its available funds and not being able pay its obligations. | |
The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern. |
5_Inventory
(5) Inventory | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
(5) Inventory | ' |
(5) Inventory | |
Inventory is principally determined by using the average cost method that approximates the First-In, First-Out (FIFO) method of accounting for inventory. Inventory consists of finished vehicles, vehicles in process, and parts. The Company’s management monitors the inventory for excess and obsolete items and makes necessary valuation adjustments when required. The Company incurred an expense against cost of sales of $18,695 as a result of inventory obsolescence. |
6_Other_Current_Assets
(6) Other Current Assets | 3 Months Ended | ||
Mar. 31, 2014 | |||
Notes | ' | ||
(6) Other Current Assets | ' | ||
(6) Other Current Assets | |||
31-Mar-14 | 31-Dec-13 | ||
Prepaid inventory | $ 98,135 | $41,461 | |
Prepaid insurance | 55,490 | 49,802 | |
Prepaid rent | 31,671 | - | |
Other prepaid expenses | 42,029 | 31,160 | |
TOTAL | $227,325 | $122,423 | |
7_Stock_Holder_Loans
(7) Stock Holder Loans | 3 Months Ended | |
Mar. 31, 2014 | ||
Notes | ' | |
(7) Stock Holder Loans | ' | |
(7) Stock Holder Loans | ||
Under the terms of the Plan, all stockholder loans and other unsecured debt obligations that were previously reported on the Company’s financial statements were converted into equity on the Confirmation Date. As a result, no such loans remained outstanding on March 31, 2014. | ||
The following table summarizes the components of liabilities subject to compromise. The Bankruptcy Court ordered the Chapter 11 closed as of February 28, 2014 and all liabilities subject to compromise were extinguished. | ||
Accounts payable & accrued liabilities | $ 817,319 | |
Accrued expenses - related party | 630,763 | |
Accrued interest – related party | 262,025 | |
Customer deposits | 211,116 | |
Convertible debt & shareholder loans | 4,222,553 | |
Stockholder loans | 354,991 | |
Total liabilities subject to compromise | $ 6,498,767 | |
Liabilities subject to compromise refers to prepetition obligations which were impacted by the Chapter 11 reorganization process. These amounts represent the debtors’ prepetition obligations that were resolved in connection with the Chapter 11 Bankruptcy Case. Substantially nearly all of the company’s debt has been classified as liabilities subject to compromise. | ||
8_Line_of_Credit
(8) Line of Credit | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
(8) Line of Credit | ' |
(8) Line of Credit | |
On April 21, 2012 the Company’s line of credit with a financial institution for $150,000 was converted to a term loan bearing interest at 6% per annum, maturing April 21, 2016. The line is secured by certain assets of a related party. The balance of the loan at March 31, 2014 was $84,670. |
9_Stock_Options
(9) Stock Options | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
(9) Stock Options | ' |
(9) Stock Options | |
The Company’s 2008 Incentive Stock Option Plan was terminated on February 28, 2014 under the terms of the chapter 11 Plan. All options outstanding there under the plan were terminated as of that date. |
10_Subsequent_Events
(10) Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
(10) Subsequent Events | ' |
(10) Subsequent Events | |
On April 14, 2014 a Director of the Company purchased 10,000 shares of the Company’s common stock at a price of $1.00 per share, paying $10,000. | |
On April 24, 2014 the Company sold 100,000 shares of its Common Stock to a private investor at a purchase price of $1.00 per share. A total of $100,000 was received on April 24, 2014. | |
On April 29, 2014 the Company sold 20,000 shares of its Common Stock to a private investor at a purchase price of $1.00 per share. A total of $20,000 was received on April 29, 2014. | |
On May 1, 2014, the Company changed its name from Xtreme Green Products, Inc. to Xtreme Green Electric Vehicles Inc (refer to Form 8-K filed on May 1, 2014 with the U S Securities and Exchange Commission. |
6_Other_Current_Assets_Schedul
(6) Other Current Assets: Schedule of Other Current Assets (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Tables/Schedules | ' | ||
Schedule of Other Current Assets | ' | ||
31-Mar-14 | 31-Dec-13 | ||
Prepaid inventory | $ 98,135 | $41,461 | |
Prepaid insurance | 55,490 | 49,802 | |
Prepaid rent | 31,671 | - | |
Other prepaid expenses | 42,029 | 31,160 | |
TOTAL | $227,325 | $122,423 | |
7_Stock_Holder_Loans_Liabiliti
(7) Stock Holder Loans: Liabilities Subject to Compromise Table Text Block (Tables) | 3 Months Ended | |
Mar. 31, 2014 | ||
Tables/Schedules | ' | |
Liabilities Subject to Compromise Table Text Block | ' | |
Accounts payable & accrued liabilities | $ 817,319 | |
Accrued expenses - related party | 630,763 | |
Accrued interest – related party | 262,025 | |
Customer deposits | 211,116 | |
Convertible debt & shareholder loans | 4,222,553 | |
Stockholder loans | 354,991 | |
Total liabilities subject to compromise | $ 6,498,767 |
4_Basis_of_Reporting_Details
(4) Basis of Reporting (Details) (USD $) | 82 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Details | ' | ' |
Net Loss | $11,237,725 | ' |
Other Additional Capital | 789,656 | ' |
Total stockholders' equity (deficit) | $1,025,692 | ($5,445,798) |
5_Inventory_Details
(5) Inventory (Details) (USD $) | Mar. 31, 2014 |
Details | ' |
Inventory Obsolescence | $18,695 |
6_Other_Current_Assets_Schedul1
(6) Other Current Assets: Schedule of Other Current Assets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Details | ' | ' |
Inventory, Gross | $98,135 | $41,461 |
Prepaid Insurance | 55,490 | 49,802 |
Prepaid Rent | 31,671 | ' |
Other Prepaid Expense, Current | $42,029 | $31,160 |
7_Stock_Holder_Loans_Liabiliti1
(7) Stock Holder Loans: Liabilities Subject to Compromise Table Text Block (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Accounts payable and accrued expenses | $185,752 | $883,985 |
Accrued expenses- related parties | ' | 704,580 |
Accrued interest-related parties | ' | 284,894 |
Customer deposits | ' | 367,900 |
Convertible debt- other, net of discount | ' | 71,303 |
Stockholder loans | 2,096 | 374,587 |
Extinguished | ' | ' |
Accounts payable and accrued expenses | 817,319 | ' |
Accrued expenses- related parties | 630,763 | ' |
Accrued interest-related parties | 262,025 | ' |
Customer deposits | 211,116 | ' |
Convertible debt- other, net of discount | 4,222,553 | ' |
Stockholder loans | 354,991 | ' |
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities | $6,498,767 | ' |
8_Line_of_Credit_Details
(8) Line of Credit (Details) (USD $) | Mar. 31, 2014 | Apr. 21, 2012 |
Details | ' | ' |
Long-term Line of Credit | ' | $150,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | ' | 6.00% |
Loans Payable, Noncurrent | $84,670 | ' |
10_Subsequent_Events_Details
(10) Subsequent Events (Details) (USD $) | Apr. 29, 2014 | Apr. 24, 2014 | Apr. 14, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
Details | ' | ' | ' | ' | ' | ||
Common Stock Shares Purchased | 20,000 | 100,000 | 10,000 | ' | ' | ||
Common Stock, Par Value | $1 | $1 | $1 | $0.00 | $0.00 | ||
Common stock | $20,000 | $100,000 | $10,000 | ' | [1] | $4,846 | [1] |
[1] | Net of allowance of $9,700 |