Xtreme Green Electric Vehicles (XGEV) 10-Q 14 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014
Document and Entity Information	'
Entity Registrant Name	'XTREME GREEN ELECTRIC VEHICLES INC.
Document Type	'10-Q
Document Period End Date	30-Sep-14
Amendment Flag	'false
Entity Central Index Key	'0001392477
Current Fiscal Year End Date	'--12-31
Entity Common Stock, Shares Outstanding	48,463,370
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	'Q3

XTREME_GREEN_ELECTRIC_VEHICLES

XTREME GREEN ELECTRIC VEHICLESINC.- Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2014		Dec. 31, 2013
Current Assets:	'		'
Cash	$94,488		$261,436
Accounts receivable	10,746	[1]	87,316	[1]
Inventory	557,943		408,287
Other current assets	149,433	[2]	122,423	[2]
Total current assets	812,610		879,462
Property and equipment, net of accumulated depreciation	360,819	[3]	162,953	[3]
Other assets	100,000		100,000
TOTAL ASSETS	1,273,429		1,142,415
Current liabilities:	'		'
Accounts payable and accrued expenses	192,863		883,985
Accrued expenses- related parties	'		704,580
Accrued interest	321		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	7,575		367,900
Short term notes	75,000		'
Current portion of long-term debt	22,391		242,190
Stockholder loans	50,000		374,587
Total current liabilities	348,150		6,558,459
Deferred rent	22,240		25,778
Note payable	148,174		'
Extended warranty reserve	23,144		3,976
Total liabilities	541,708		6,588,213
Stockholders' equity (deficit):	'		'
Common stock	'	[4]	4,846	[4]
Common stock payable	41,170		'
Additional paid-in capital	12,892,252		5,871,900
Accumulated (deficit)	-12,201,701		-11,322,544
Total stockholders' equity (deficit)	731,721		-5,445,798
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$1,273,429		$1,142,415
[1]	Net of allowance of $854
[2]	Note 7
[3]	net of accumulated depreciation of $196,919 and $127,542
[4]	$0.001 par value, 100,000,000 shares authorized; 41,170,000 and 48,463,370 shares issued and outstanding as of September 30, 2014 and December 31, 2013

Statement_of_Financial_Positio

Statement of Financial Position - Parenthetical (USD $)	Sep. 30, 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	41,170,000	48,463,370
Common Stock, Shares Outstanding	41,170,000	48,463,370

XTREME_GREEN_ELECTRIC_VEHICLES1

XTREME GREEN ELECTRIC VEHICLES INC. Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement	'	'	'	'
Sales, net	$256,717	'	$804,393	$31,709
Cost of sales	247,217	4,934	898,006	233
Gross margin (loss)	9,500	-4,934	-93,613	31,476
Costs and expenses:	'	'	'	'
General and administrative	284,380	95,708	1,043,727	272,091
Sales and marketing	56,909	29,818	218,932	31,318
Research and Development	19,437	'	19,437	'
Total costs and expenses	360,726	125,526	1,282,096	303,409
Net loss from operations	-351,226	-120,592	-1,375,709	-271,933
Other income (expense):	'	'	'	'
Gain from equipment sales	'	'	'	9,379
Interest expense	-832	-63,413	-16,217	-217,675
Fundraising expense	-16,588	'	-16,588	'
Total other income (expense)	-17,420	-63,413	-32,805	-208,296
Expenses and fees related to Chapter 11 filing:	'	'	'	'
Gain realized from Chapter 11 Reorganization	100	'	562,927	'
Professional fees	'	'	-33,565	'
Net loss before provision for income taxes	-368,546	-184,005	-879,152	-480,229
Provision for income taxes	'	'	'	'
Net Loss	($368,546)	($184,005)	($879,152)	($480,229)
Per share information - basic and diluted:	'	'	'	'
Loss per common share	$0.01	$0	$0.02	$0.01
Weighted average common shares outstanding	41,052,143	48,463,370	43,987,714	48,463,370

XTREME_GREEN_ELECTRIC_VEHICLES2

XTREME GREEN ELECTRIC VEHICLES, INC. - Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net Loss	($879,152)	($480,229)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Stock-based compensation	'	46,428
Depreciation	59,064	35,715
Accretion of discount on convertible debts	'	5,546
Gain on sale of property	'	-9,379
Gain realized from Chapter 11 Reorganization	-562,927	'
Changes in operating assets and liabilities:	'	'
Decrease in accounts receivable	76,573	'
(Increase) decrease in inventory	-150,899	4,904
(Increase) decrease in other current assets	-27,012	-295,103
(Increase) in other assets	'	-280,000
(Decrease) increase accounts payable and accrued expenses	219,835	162,985
(Decrease) in accrued expense - related party	-279	-71,790
(Decrease) in accrued interest - related party	-22,869	120,749
(Decrease)in warranty reserve	-13,707	'
Increase in extended warranty	19,139	2,500
Increase (Decrease) in customer deposits	-31,400	49,795
Net Cash used in Operating Activities	-1,313,605	-707,879
Cash Flows From Investing Activities:	'	'
Proceds from sale of property and equipment	'	35,658
Purchases of property and equipment	-256,929	'
Net Cash used in Investing Activities	-256,929	35,658
Cash Flows From Financing Activities:	'	'
Proceeds from issuance of common stock	1,170,000	'
Proceeds from long-term debt	191,457	'
Proceeds from convertible debt - related party	'	999,500
Repayment of convertible debt	-15,371	'
Repayment of long-term debt	'	-36,496
Bridge Loan- short term	75,000	'
Repayment of stockholders loans	-67,500	'
Proceeds from stockholder loans	50,000	14,539
Net Cash provided by Financing Activities	1,403,586	977,543
Net increase (decrease) in cash	-166,948	305,322
Cash - beginning of period	261,436	'
Cash - end of period	94,488	305,322
Supplemental Cash Flow Information	'	'
Cash paid for interest	16,217	'
Non-cash financing and investing 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	'
Costumer 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	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 2014
Notes	'
(2) Chapter 11 Proceedings	'
	(2)           Chapter 11 Proceedings
	On August 22, 2013 (the Petition Date), Xtreme Green Electric Vehicles, 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 11case closed as of February 28, 2014.

3_Earnings_Per_Share

(3) Earnings Per Share	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 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 September 30, 2014 aggregating $12,201,701 and has working capital and stockholder equity of $464,460 and $731,721 at September 30, 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_Going_Concern

(5) Going Concern	9 Months Ended
	Sep. 30, 2014
Notes	'
(5) Going Concern	'
	(5)           Going Concern
	The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has a net loss of $879,152 for the nine month period ended September 30, 2014 and accumulated deficit of $12,201,701 as of September 30, 2014, and it is expected that it will continue to have negative cash flows as the business plan is implemented.
	These conditions give rise to doubt about the company’s ability to continue as a going concern. These financial statements do not include adjustments relating to the recoverability and classification of reported assets amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to obtain additional financing or sale of its common stock as may be required and ultimately to attain profitability.

6_Inventory

(6) Inventory	9 Months Ended
	Sep. 30, 2014
Notes	'
(6) Inventory	'
	(6)           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.

7_Other_Current_Assets

(7) Other Current Assets	9 Months Ended
	Sep. 30, 2014
Notes	'
(7) Other Current Assets	'
	(7)           Other Current Assets
		30-Sep-14	31-Dec-13
	Prepaid Trade Shows	48,510	-
	Prepaid inventory	$                       4,725	$                41,461
	Prepaid insurance	79,546	49,802
	Prepaid rent	14,659	-
	Other prepaid expenses	1,993	31,160
	TOTAL	$                  149,433	$              122,423

8_Stock_Holder_Loans

(8) Stock Holder Loans	9 Months Ended
	Sep. 30, 2014
Notes	'
(8) Stock Holder Loans	'
	(8)           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. Since the confirmation, our principal stockholder advanced $50,000 to the Company.
	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 all of the company’s prepetition debt was classified as liabilities subject to compromise.

9_Line_of_Credit_and_Other_Not

(9) Line of Credit and Other Notes Payable	9 Months Ended
	Sep. 30, 2014
Notes	'
(9) Line of Credit and Other Notes Payable	'
	(9)           Line of Credit and Other Notes Payable
	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 was secured by certain assets of a related party.  The balance of the Company’s term loan in the amount of $81,670 was paid in full during the quarter ended June 30, 2014.
	On September 3, 2014 the Company borrowed $75,000 from a private party. The loan accrues interest at 6% per annum, payable on December 3, 2014. This obligation is guaranteed by the Georgiou Family Trust dated 6/22/2009 a shareholder of the Company.

10_Stock_Options

(10) Stock Options	9 Months Ended
	Sep. 30, 2014
Notes	'
(10) Stock Options	'
	(10)         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 the under the plan were terminated as of that date.

11_Subsequent_Events

(11) Subsequent Events	9 Months Ended
	Sep. 30, 2014
Notes	'
(11) Subsequent Events	'
	(11)        Subsequent Events
	On October 28, 2014 the Company sold 50,000 shares of its Common Stock to a private investor at a purchase price of $1.00 per share. A total of $50,000 was received on that date.
	On November 5, 2014 the Company sold 250,000 shares of its common Stock to a private investor at a purchase price of $1.00 per share. In accordance with a prior agreement with the investor to purchase an additional 250,000 shares of common stock for $250,000 on or before December 15, 2014, the Company issued warrants to purchase an additional 750,000 shares of common stock at a purchase price of $1.00 per share. These warrants expire March 31, 2017.
	On November 5, 2014 the Company repaid its principal stockholder for the $50,000 short term advance.

7_Other_Current_Assets_Schedul

(7) Other Current Assets: Schedule of Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Other Current Assets	'
		30-Sep-14	31-Dec-13
	Prepaid Trade Shows	48,510	-
	Prepaid inventory	$                       4,725	$                41,461
	Prepaid insurance	79,546	49,802
	Prepaid rent	14,659	-
	Other prepaid expenses	1,993	31,160
	TOTAL	$                  149,433	$              122,423

8_Stock_Holder_Loans_Schedule_

(8) Stock Holder Loans: Schedule of Debt (Tables)	9 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Debt	'
	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 $)	88 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Details	'	'
Net Loss	$12,201,701	'
Other Additional Capital	464,460	'
Total stockholders' equity (deficit)	$731,721	($5,445,798)

5_Going_Concern_Details

(5) Going Concern (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Details	'	'	'	'	'
Net Loss	$368,546	$184,005	$879,152	$480,229	'
Accumulated (deficit)	$12,201,701	'	$12,201,701	'	$11,322,544

7_Other_Current_Assets_Schedul1

(7) Other Current Assets: Schedule of Other Current Assets (Details) (USD $)	Sep. 30, 2014		Dec. 31, 2013
Details	'		'
Prepaid Expense, Current	$48,510		'
Inventory, Gross	4,725		41,461
Prepaid Insurance	79,546		49,802
Prepaid Rent	14,659		'
Other Prepaid Expense, Current	1,993		31,160
Other current assets	$149,433	[1]	$122,423	[1]
[1]	Note 7

8_Stock_Holder_Loans_Details

(8) Stock Holder Loans (Details) (USD $)	Sep. 30, 2014
Details	'
Customer Advances, Current	$50,000

8_Stock_Holder_Loans_Schedule_1

(8) Stock Holder Loans: Schedule of Debt (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Accounts payable and accrued expenses	$192,863	$883,985
Accrued expenses- related parties	'	704,580
Accrued interest-related parties	'	284,894
Customer deposits	7,575	367,900
Convertible debt- other, net of discount	'	71,303
Stockholder loans	50,000	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	'

9_Line_of_Credit_and_Other_Not1

(9) Line of Credit and Other Notes Payable (Details) (USD $)	Sep. 03, 2014	Jun. 30, 2014	Apr. 21, 2012
Details	'	'	'
Long-term Line of Credit	'	'	$150,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	6.00%	'	6.00%
Loans Payable, Noncurrent	'	81,670	'
Borrowed Funds	$75,000	'	'

11_Subsequent_Events_Details

(11) Subsequent Events (Details) (USD $)	Nov. 05, 2014	Oct. 28, 2014	Sep. 30, 2014		Dec. 31, 2013
Details	'	'	'		'
Common Stock Shares Purchased	250,000	50,000	'		'
Common Stock, Par Value	$1	$1	$0.00		$0.00
Common stock	$250,000	$50,000	'	[1]	$4,846	[1]
Repayment of stockholders loans	$50,000	'	($67,500)		'
[1]	$0.001 par value, 100,000,000 shares authorized; 41,170,000 and 48,463,370 shares issued and outstanding as of September 30, 2014 and December 31, 2013