Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 26-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | GREEN ENDEAVORS, INC. | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1487997 | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 246,568,747 | |
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 | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Incorporation, Date of Incorporation | 25-Apr-02 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
Current Assets: | ||||
Cash | $154,970 | $100,628 | ||
Certificate of deposit | 28,660 | |||
Accounts receivable | 12,096 | 15,764 | ||
Inventory | 142,756 | 152,758 | ||
Prepaid expenses | 27,340 | 22,800 | ||
Notes receivable - current | 1,034 | |||
Total current assets | 338,196 | 320,610 | ||
Property, plant, and equipment, net of accumulated depreciation of $759,975 and $727,328, respectively | 372,958 | 402,152 | ||
Other assets | 24,475 | 24,475 | ||
Total Assets | 735,629 | 747,237 | ||
Current Liabilities: | ||||
Accounts payable and accrued expenses | 397,201 | 336,569 | ||
Deferred revenue | 54,020 | 62,755 | ||
Deferred rent | 98,441 | 103,174 | ||
Due to related parties | 53,373 | 77,132 | ||
Derivative liability | 161,870 | 31,424 | ||
Current portion of notes payable | 216,194 | 181,762 | ||
Current portion of related party notes payable | 58,017 | 52,250 | ||
Current portion of capital leases payable | 22,626 | 21,701 | ||
Current portion of convertible notes payable, net of debt discount of $79,516 and $0, respectively | 53,484 | 110,000 | ||
Total current liabilities | 1,115,226 | 976,767 | ||
Long-Term Liabilities: | ||||
Notes payable related party | 19,315 | |||
Notes payable | 115,569 | 114,147 | ||
Capital lease obligations | 6,928 | 12,945 | ||
Convertible debentures related party, net of debt discount of $38,610 and $41,741, respectively | 2,174,981 | 2,171,850 | ||
Total long-term liabilities | 2,316,793 | 2,298,942 | ||
Total Liabilities | 3,432,019 | 3,275,709 | ||
Stockholders' Deficit: | ||||
Preferred stock | 10,742 | [1],[2],[3] | 10,760 | [1],[2],[3] |
Common stock, $0.0001 par value, 10,000,000,000 shares authorized; 246,568,747 and 195,414,505 shares issued and outstanding at March 31, 2015, and December 31, 2014, respectively | 24,656 | 19,541 | ||
Subscription Receivable | -198,000 | |||
Additional paid-in capital | 946,328 | 643,547 | ||
Accumulated deficit | -3,480,116 | -3,202,320 | ||
Total stockholders' deficit | -2,696,390 | -2,528,472 | ||
Total Liabilities and Stockholders' Deficit | 735,629 | 747,237 | ||
Convertible Supervoting Preferred Stock | ||||
Stockholders' Deficit: | ||||
Preferred stock | 10,000 | 10,000 | ||
Convertible Series B Preferred Stock | ||||
Stockholders' Deficit: | ||||
Preferred stock | 742 | 760 | ||
Undesignated Preferred Stock | ||||
Stockholders' Deficit: | ||||
Preferred stock | ||||
[1] | Convertible supervoting preferred stock, $0.001 par value, 10,000,000 shares authorized; 10,000,000 and 10,000,000 shares issued and outstanding at March 31, 2015 and December 31, 2014; no liquidation value | |||
[2] | Convertible preferred series B stock - $0.001 par value, 2,000,000 shares authorized, 742,383 and 760,488 shares issued and outstanding at March 31, 2015, and December 31, 2014, respectively | |||
[3] | Preferred, undesignated stock - $0.001 par value 3,000,000 shares authorized, no shares issued and outstanding at March 31, 2015, and December 31, 2014 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 10,000,000,000 | 10,000,000,000 |
Common Stock, Shares Issued | 246,568,747 | 195,414,505 |
Common Stock, Shares Outstanding | 246,568,747 | 195,414,505 |
Accumulated Depreciation on Property, plant, and equipment | $759,975 | $727,328 |
Preferred Stock, Par Value | $0.00 | |
Preferred Stock, Shares Authorized | 15,000,000 | |
Convertible Supervoting Preferred Stock | ||
Preferred Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Outstanding | 10,000,000 | 10,000,000 |
Preferred Stock, Liquidation Value | ||
Convertible Series B Preferred Stock | ||
Preferred Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 |
Preferred Stock, Shares Issued | 742,383 | 760,488 |
Preferred Stock, Shares Outstanding | 742,383 | 760,488 |
Undesignated Preferred Stock | ||
Preferred Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 3,000,000 | 3,000,000 |
Preferred Stock, Shares Issued | ||
Preferred Stock, Shares Outstanding | ||
Convertible Debenture - Related Party | ||
Debt discount, current | 38,610 | 41,741 |
Convertible Notes Payable | ||
Debt discount, current | 79,516 | 0 |
Convertible Notes Payable | Convertible Debenture - Related Party | ||
Debt discount, current | $38,610 | $41,741 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue: | ||
Services, net of discounts | $504,517 | $616,567 |
Product, net of discounts | 197,239 | 220,898 |
Total revenue | 701,756 | 837,465 |
Costs and expenses: | ||
Cost of services | 297,443 | 370,484 |
Cost of product | 110,285 | 128,803 |
Depreciation | 32,648 | 32,926 |
General and administrative | 464,493 | 355,262 |
Total costs and expenses | 904,869 | 887,475 |
Loss from operations | -203,113 | -50,010 |
Other income (expenses): | ||
Interest income | 1,109 | 207 |
Interest expense | -37,962 | -31,094 |
Interest expense, related parties | -45,739 | -49,765 |
Gain (loss) on derivative fair value adjustment | -30,380 | 7,766 |
Gain on settlement of debt | 39,195 | 6,994 |
Other expense | -906 | -1,256 |
Total other expenses | -74,683 | -67,148 |
Loss before income taxes | -277,796 | -117,158 |
Provision for income taxes | ||
Net loss | ($277,796) | ($117,158) |
Basic and Diluted: | ||
Basic loss per common share | $0 | $0 |
Weighted-average common shares outstanding | 226,463,991 | 173,177,202 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash Flows from Operating Activities: | ||
Net loss | ($277,796) | ($117,158) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 32,648 | 32,926 |
Debt discount amortization | 17,663 | 18,298 |
Stock based compensation | 74,073 | |
(Gain) on settlement of debt | -39,195 | -6,994 |
Gain on derivative liability fair value adjustment | 30,380 | -7,766 |
Initial derivative expense | 6,018 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,668 | 4,358 |
Notes Receivable | -1,034 | |
Certificate of deposit | 28,660 | |
Inventory | 10,002 | -8,693 |
Prepaid expenses | -4,540 | |
Other assets | -15,981 | |
Accounts payable and accrued expenses | 60,632 | 101,699 |
Due to related parties | -23,759 | 61,541 |
Deferred rent | -4,733 | -1,307 |
Deferred revenue | -8,735 | -8,484 |
Net cash provided by (used in) operating activities | -96,048 | 52,439 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant, and equipment | -3,454 | -19,473 |
Net cash used in investing activities | -3,454 | -19,473 |
Cash Flows from Financing Activities: | ||
Payments made on notes payable | -47,026 | -13,186 |
Payments made on convertible notes payable | ||
Payments made on related party notes payable | -38,395 | |
Payments made on related party convertible notes payable | ||
Payments made on capital lease obligations | -5,092 | -4,309 |
Proceeds from issuance of notes payable | 82,880 | 12,021 |
Proceeds from issuance of related party notes payable | 25,082 | |
Proceeds from issuance of convertible series B preferred stock | 98,000 | 40,000 |
Net cash provided by (used in) financing activities | 153,844 | -3,869 |
Increase in cash | 54,342 | 29,097 |
Cash at beginning of period | 100,628 | 105,984 |
Cash at end of period | 154,970 | 135,081 |
Supplemental cash flow information: | ||
Cash paid during the period for: Interest | 56,173 | 5,264 |
Non-cash investing and financing activities: | ||
Debt discount on derivative liability, convertible notes | 94,048 | |
Conversion of Series B preferred stock to common stock | 492 | 2,350 |
Return of Series B preferred stock | 14 | |
Exercised options for stock subscription | 198,000 | |
Issuance of Common stock for settlement of debt | $35,085 |
Note_1_Nature_of_Operations_an
Note 1 - Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Note 1 - Nature of Operations and Basis of Presentation | Note 1 – Nature of Operations and Basis of Presentation |
Business Description | |
Green Endeavors, Inc., (“Green”) owns and operates two hair salons carrying the Aveda product line through its wholly-owned subsidiaries Landis Salons, Inc. (“Landis”) and Landis Salons II, Inc. (“Landis II”) in Salt Lake City, Utah. Green also owns and operates Landis Experience Center LLC (“LEC”), an Aveda retail store in Salt Lake City, Utah. | |
Organization | |
Green Endeavors, Inc. was incorporated under the laws of the State of Delaware on April 25, 2002 as Jasper Holdings.com, Inc. During the year ended December 2004, Green changed its name to Net2Auction, Inc. In July of 2007, Green changed its name to Green Endeavors, Ltd. On August 23, 2010, Green changed its name to Green Endeavors, Inc. and moved the corporate domicile from Delaware to Utah. Green has four classes of stock as follows: common with 10,000,000,000 shares authorized; preferred with 3,000,000 shares authorized; convertible preferred with 2,000,000 shares authorized; and, convertible supervoting preferred with 10,000,000 shares authorized. Green is quoted on the “OTC Pink” marketplace segment under the symbol GRNE. | |
Green is a more than 50% controlled subsidiary of Sack Lunch Productions, Inc. (“SAKL”). Sack Lunch Productions, Inc. is listed at OTC Markets trading under the symbol SAKL and is not currently a reporting company. Previous to April 15, 2015, SAKL was known as Nexia Holdings, Inc. and was trading under its symbol NXHD. | |
Landis Salons, Inc., a Utah corporation, was organized on May 4, 2005 for the purpose of operating an Aveda Lifestyle Salon. Landis Salons, Inc. is a wholly-owned subsidiary of Green. | |
Landis Salons II, Inc., a Utah corporation was organized on March 17, 2010 as a wholly-owned subsidiary of Green for the purpose of opening a second Aveda Lifestyle Salon. | |
Landis Experience Center, LLC (“LEC”), a Utah limited liability company, was organized on January 23, 2012 as a wholly-owned subsidiary of Green for the purpose of operating an Aveda retail store in the City Creek Mall in Salt Lake City, Utah. | |
Basis of Presentation | |
The consolidated financial statements include the accounts of Green and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly-owned by Green. | |
These statements should be read in conjunction with the Company’s annual financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. In particular, the Company’s significant accounting policies were presented as Note 2 to the consolidated financial statements in that Annual Report. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying condensed consolidated financial statements for the three months ended March 31, 2015, are not necessarily indicative of the results that may be expected for the 12 months ending December 31, 2015. | |
Use of Estimates in the Preparation of the Financial Statements | |
The consolidated financial statements are prepared in conformity with U.S. GAAP, which requires the use of estimates, judgments and assumptions that affect the amounts of assets and liabilities at the reporting date and the amounts of revenue and expenses in the periods presented. We believe that the accounting estimates employed are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates actual results could differ from the original estimates, requiring adjustments to these balances in future periods. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended | |
Mar. 31, 2015 | ||
Notes | ||
Note 2 - Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies | |
Cash and Cash Equivalents | ||
Investments with original maturities of three months or less at the time of purchase are considered cash equivalents. As of March 31, 2015 and December 31, 2014, Green had no cash equivalents. | ||
Inventory | ||
Inventory consists of items held for resale and is carried at the lower of cost or market. Cost is determined using the first in, first out (“FIFO”) method. | ||
Property, Plant, and Equipment | ||
Property, plant, and equipment are stated at historical cost. Depreciation is generally provided over the estimated useful lives, using the straight-line method, as follows: | ||
Leasehold improvements | Shorter of the lease term or the estimated useful life | |
Computer equipment and related software | 3 years | |
Furniture and fixtures | 3-10 years | |
Equipment | 3-10 years | |
Vehicle | 7 years | |
Signage | 10 years | |
For the three month periods ended March 31, 2015 and 2014, Green recorded depreciation expense of $32,648 and $32,926, respectively. | ||
Long-Lived Assets | ||
We periodically review the carrying amount of our long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the carrying amount of the asset. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Fair value is generally determined based on discounted future cash flow. There were no impairments of long-lived assets during the three month periods ended March 31, 2015 and 2014. | ||
Fair Value Measurements | ||
The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: | ||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | ||
Level 2: Observable market-based inputs or inputs that are corroborated by market data. | ||
Level 3: Unobservable inputs that are not corroborated by market data. | ||
Revenue Recognition | ||
There are two primary two types of revenue for the Company: 1) providing hair salon services, and 2) selling hair salon products. Revenue is recognized at the time the service is performed or the product is delivered. All revenue sources are domestic. In some cases, such as the sale of gift cards, revenue is deferred until the gift card is redeemed. | ||
Deferred Revenue | ||
Deferred revenue arises when customers pay for products and/or services in advance of revenue recognition. Green’s deferred revenue consists solely of unearned revenue associated with the purchase of gift certificates for which revenue is recognized only when the service is performed or the product is delivered. As of March 31, 2015 and December 31, 2014, deferred revenue was $54,020 and $62,755, respectively. | ||
Advertising | ||
The Company expenses advertising production costs as they are incurred and advertising communication costs the first time the advertising takes place. For the three month period ended March 31, 2015 and 2014, advertising costs amounted to $25,108 and $19,472, respectively. | ||
Stock-Based Compensation | ||
Green recognizes the cost of employee services received in exchange for awards of equity instruments as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the fair value of the restricted stock award, option, or purchase right and is recognized as expense, less expected forfeitures, over the requisite service period, which typically equals the vesting period. Because the employee is expected to and has historically received shares of common stock on or about the date of the employee stock option grant date as part of the exercise process, the fair value of each stock issuance is determined using the fair value of Green’s common stock on the grant date. | ||
Income Taxes | ||
Deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Also, Green's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Green is 100% consolidated into its parent company, SAKL, and therefore does not file an income tax return. Its financial amounts are consolidated into the SAKL income tax returns. As of March 31, 2015 and December 31, 2014, a 100% valuation allowance has been placed against the deferred tax asset and therefore is not reflected on the balance sheets. | ||
Net Loss Per Share | ||
Net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the specified period. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares and potential common shares during the specified period. For the three months ended March 31, 2015, potential common shares are not included in the diluted net loss per share calculation as their effect would be anti-dilutive. Such potentially dilutive shares are excluded when the effect would be to reduce net loss per share. There were approximately 3,220,829,732 such potentially dilutive shares excluded as of March 31, 2015. | ||
Reclassification of Financial Statement Accounts | ||
Certain amounts in the December 31, 2014 financial statements have been reclassified to conform to the presentation in the March 31, 2015 financial statements. | ||
Recent Accounting Pronouncements | ||
Management believes the impact of recently issued standards and updates, which are not yet effective, will not have a material impact on Green’s consolidated financial position, results of operations or cash flows upon adoption. |
Note_3_Inventory
Note 3 - Inventory | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Note 3 - Inventory | Note 3 – Inventory |
Green’s inventory consists of items held for resale and product that is used in services by the Landis and Landis II salons, and all are considered finished goods. Inventory is carried at the lower of cost or market. As of March 31, 2015 and December 31, 2014, inventory amounted to $142,756 and $152,758, respectively. |
Note_4_Property_Plant_and_Equi
Note 4 - Property, Plant, and Equipment | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Notes | ||||
Note 4 - Property, Plant, and Equipment | Note 4 – Property, Plant, and Equipment | |||
The following is a summary of Green’s Property, plant, and equipment by major category as of March 31, 2015: | ||||
Cost | Accumulated Depreciation | Net | ||
Computer equipment and related software | $39,247 | $24,268 | $14,979 | |
Construction in process | 1,000 | - | 1,000 | |
Leasehold improvements | 630,834 | 428,806 | 202,028 | |
Furniture and fixtures | 27,201 | 22,923 | 4,278 | |
Leased equipment | 76,298 | 42,618 | 33,680 | |
Equipment | 285,006 | 194,943 | 90,063 | |
Vehicle | 48,193 | 34,424 | 13,769 | |
Signage | 25,154 | 11,993 | 13,161 | |
Total | $1,132,933 | $759,975 | $372,958 | |
The following is a summary of Green’s Property, plant, and equipment by major category as of December 31, 2014: | ||||
Cost | Accumulated Depreciation | Net | ||
Computer equipment and related software | $39,247 | $22,189 | $17,058 | |
Construction in process | 24,905 | - | 24,905 | |
Leasehold improvements | 625,004 | 410,010 | 214,994 | |
Furniture and fixtures | 27,201 | 22,117 | 5,084 | |
Leased equipment | 76,298 | 38,803 | 37,495 | |
Equipment | 263,478 | 190,114 | 73,364 | |
Vehicle | 48,193 | 32,703 | 15,490 | |
Signage | 25,154 | 11,392 | 13,762 | |
Total | $1,129,480 | $727,328 | $402,152 |
Note_5_Fair_Value_Measurements
Note 5 - Fair Value Measurements | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes | |||||
Note 5 - Fair Value Measurements | Note 5 – Fair Value Measurements | ||||
Our financial assets and (liabilities) carried at fair value measured on a recurring basis as of March 31, 2015 and December 31, 2014, consisted of the following: | |||||
Total fair | Quoted prices | Significant other | Significant | ||
value at | in active | observable | unobservable | ||
March 31, | markets | inputs | inputs | ||
Description | 2015 | (Level) | (Level 2) | (Level) | |
Derivative liability (1) | $161,870 | - | $161,870 | - | |
Total fair | Quoted prices | Significant other | Significant | ||
value at | in active | Observable | unobservable | ||
December 31, | markets | Inputs | inputs | ||
Description | 2014 | (Level) | (Level 2) | (Level) | |
Derivative liability (1) | $31,424 | - | $31,424 | - | |
(1) Derivative liability amounts are due to the embedded derivatives of certain convertible notes payable issued by the Company and are calculated using the Black Scholes pricing model (see Note 6 - Derivative liability) | |||||
Note_6_Derivative_Liability
Note 6 - Derivative Liability | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Note 6 - Derivative Liability | Note 6 – Derivative Liability |
As of March 31, 2015, the Company had a $161,870 derivative liability balance on the balance sheet, and for the three months ended March 31. 2015, the Company recorded a $30,380 loss from derivative liability fair value adjustment. The derivative liability activity comes from convertible notes payable as follows: | |
Eastshore Enterprises, Inc. | |
On August 17, 2012, Green issued a $35,000 Convertible Promissory Note to Eastshore Enterprises, Inc. (“Eastshore Note”) that matured August 17, 2014. The Eastshore Note bears interest at a rate of 8% per annum and can be convertible into Green’s common shares, at the holder’s option, at the conversion rate of 54% of the market price (a 46% discount) of the lowest trading price of Green’s common shares during the ten-day period ending one trading day prior to the date of the conversion. Green analyzed the conversion feature of the agreement for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the embedded conversion features should be classified as a derivative because the exercise price of these convertible notes are subject to “reset” provisions in the event the Company subsequently issues common stock, stock warrants, stock options or convertible debt with a stock price, exercise price or conversion price lower than conversion price of these notes. If these provisions are triggered, the conversion price of the note will be reduced. The Company has determined that the conversion feature is not considered to be solely indexed to the Company’s own stock and is therefore not afforded equity treatment. In accordance with AC 815, the Company has bifurcated the conversion feature of the note and recorded a derivative liability. | |
The embedded derivative for the Eastshore Note is carried on Green’s balance sheet at fair value. The derivative liability is marked-to-market each measurement period and any unrealized change in fair value is recorded as a component of the income statement and the associated fair value carrying amount on the balance sheet is adjusted by the change. Green fair values the embedded derivative using the Black-Scholes option pricing model. The fair value of the derivative at the inception date of the Eastshore Note was $63,636. Of the total, $35,000 was recorded as a debt discount, which is up to but not more than the net proceeds of the note. $28,636 was charged to operations as non-cash interest expense. The fair value of $63,636 was recorded as a derivative liability on the balance sheet. | |
The debt discount for the Eastshore Note is amortized over the life of the note (approximately two years). On March 31, 2015, Green marked-to-market the fair value of the derivative liabilities related to the Eastshore Note and determined an aggregate fair value of $46,705 and recorded a $15,281 loss from change in fair value of derivative for the three month period ended March 31, 2015. The fair value of the embedded derivative for the note was determined using the Black-Scholes option pricing model based on the following assumptions: (1) dividend yield of 0%, (2) expected volatility of 197.97%, (3) risk-free interest rate of 0.14%, (4) expected life of .50 years, and (5) estimated fair value of Green’s common stock of $0.0015 per share. | |
KBM Worldwide, Inc. | |
As discussed in Note 8 – “Debt”, on January 26, 2015, Green issued a $64,000 Convertible Promissory Note to KBM Worldwide, Inc. (“KBM Note”) that matures October 28, 2015. The KBM Note bears interest at a rate of 8% per annum and can be convertible into Green’s common shares, at the holder’s option, at the conversion rate of 58% of the market price (a 42% discount) of an average of the lowest trading price of Green’s common shares during the ten-day period ending one trading day prior to the date of the conversion. Green analyzed the conversion feature of the agreement for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the embedded conversion features should be classified as a derivative because the exercise price of these convertible notes are subject to “reset” provisions in the event the Company subsequently issues common stock, stock warrants, stock options or convertible debt with a stock price, exercise price or conversion price lower than conversion price of these notes. If these provisions are triggered, the conversion price of the note will be reduced. The Company has determined that the conversion feature is not considered to be solely indexed to the Company’s own stock and is therefore not afforded equity treatment. In accordance with AC 815, the Company has bifurcated the conversion feature of the note and recorded a derivative liability. | |
The embedded derivative for the KBM Note is carried on Green’s balance sheet at fair value. The derivative liability is marked-to-market each measurement period and any unrealized change in fair value is recorded as a component of the income statement and the associated fair value carrying amount on the balance sheet is adjusted by the change. Green fair values the embedded derivative using the Black-Scholes option pricing model. The fair value of the derivative at the inception date of the KBM Note was $60,048. Of the total, $60,048 was recorded as a debt discount, which is up to but not more than the net proceeds of the note. $0 was charged to operations as non-cash interest expense. The fair value of $60,048 was recorded as a derivative liability on the balance sheet. | |
The debt discount for the KBM Note is amortized over the life of the note (approximately nine months). On March 31, 2015, Green marked-to-market the fair value of the derivative liabilities related to the KBM Note and determined an aggregate fair value of $73,674 and recorded a $13,626 loss from change in fair value of derivative for the three month period ended March 31, 2015. The fair value of the embedded derivative for the note was determined using the Black-Scholes option pricing model based on the following assumptions: (1) dividend yield of 0%, (2) expected volatility of 187.19%, (3) risk-free interest rate of 0.13%, (4) expected life of ..58 years, and (5) estimated fair value of Green’s common stock of $0.0017 per share. | |
LG Capital Funding, LLC | |
As discussed in Note 8 – “Debt”, on March 25, 2015, Green issued a $34,000 Convertible Promissory Note to LG Capital Funding, LLC (“LGCF Note”) that matures March 25, 2016. The LGCF Note bears interest at a rate of 8% per annum and can be convertible into Green’s common shares, at the holder’s option, at the conversion rate of 58% of the market price (a 42% discount) of an average of the lowest trading price of Green’s common shares during the eighteen-day period ending on the date of the conversion. Green analyzed the conversion feature of the agreement for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the embedded conversion features should be classified as a derivative because the exercise price of these convertible notes are subject to “reset” provisions in the event the Company subsequently issues common stock, stock warrants, stock options or convertible debt with a stock price, exercise price or conversion price lower than conversion price of these notes. If these provisions are triggered, the conversion price of the note will be reduced. The Company has determined that the conversion feature is not considered to be solely indexed to the Company’s own stock and is therefore not afforded equity treatment. In accordance with AC 815, the Company has bifurcated the conversion feature of the note and recorded a derivative liability. | |
The embedded derivative for the LGCF Note is carried on Green’s balance sheet at fair value. The derivative liability is marked-to-market each measurement period and any unrealized change in fair value is recorded as a component of the income statement and the associated fair value carrying amount on the balance sheet is adjusted by the change. Green fair values the embedded derivative using the Black-Scholes option pricing model. The fair value of the derivative at the inception date of the LGCF Note was $40,018. Of the total, $34,000 was recorded as a debt discount, which is up to but not more than the net proceeds of the note. $6,018 was charged to operations as non-cash interest expense. The fair value of $40,018 was recorded as a derivative liability on the balance sheet. | |
The debt discount for the LGCF Note is amortized over the life of the note (approximately twelve months). On March 31, 2015, Green marked-to-market the fair value of the derivative liabilities related to the LGCF Note and determined an aggregate fair value of $41,491 and recorded a $1,473 loss from change in fair value of derivative for the three month period ended March 31, 2015. The fair value of the embedded derivative for the note was determined using the Black-Scholes option pricing model based on the following assumptions: (1) dividend yield of 0%, (2) expected volatility of 155.95%, (3) risk-free interest rate of 0.26%, (4) expected life of .1.00 year, and (5) estimated fair value of Green’s common stock of $0.0017 per share. |
Note_7_Related_Party_Transacti
Note 7 - Related Party Transactions | 3 Months Ended | ||
Mar. 31, 2015 | |||
Notes | |||
Note 7 - Related Party Transactions | Note 7 – Related Party Transactions | ||
On April 30, 2008, Green entered into a stock transfer agreement with its parent company SAKL and SAKL’s wholly-owned subsidiary DHI whereby they would each sell their holdings in Landis and Newby in exchange for an 8% Series A Senior Subordinated Convertible Debenture with a face amount of $3,000,000. Interest on the debenture commenced on December 30, 2008. DHI has the option, at any time, to convert all or any amount over $10,000 of principal face amount and accrued interest into shares of Common stock, $0.0001 par value per share, at a conversion price equal to 95% of the average closing bid price of the Common stock three days prior to the date notice is received by Green. Green determined that there is a beneficial conversion feature for the debt and recorded a debt discount of $150,000 on April 30, 2008, which is being amortized for 10 years to the maturity date of the debenture. In December 2009, SAKL converted $125,000 of the debenture into common stock of Green and during 2010 Green paid $15,200 of principal on the debenture. During 2010, SAKL sold $500,000 of its holdings of the debenture to unrelated parties for cash thus leaving the related and unrelated party portions of the debenture at $2,359,800 and $500,000, respectively for a total amount of $2,859,800. As of March 31, 2015 and December 31, 2014, the entire amount is considered long-term. | |||
The following table shows the related party debenture and the amortized debt discount amounts: | |||
March 31, | December 31, | ||
2015 | 2014 | ||
Convertible Debenture - Related Party | |||
Principal amount | $2,213,591 | $2,213,591 | |
Debt discount | -38,610 | -41,741 | |
Convertible debenture, net of debt discount | $2,174,981 | $2,171,850 | |
As of both March 31, 2015 and December 31, 2014, the principal balance of related party convertible debentures was $2,213,591 and the balance of accrued interest was $0. | |||
As of March 31, 2015 and December 31, 2014, amounts due to related parties are $53,373 and $77,132, respectively. The $53,373 consists of $5,024 of accrued interest for the notes payable to Richard Surber, and $48,349 from various amounts owed to SAKL and its subsidiaries. The $77,132 consists of $3,704 of accrued interest for the note payable to Richard Surber and $73,428 from various amounts owed to SAKL's subsidiaries. | |||
Richard Surber is also providing his personal guaranty for several lines of credit and credit cards that are being utilized by the Company and its operating subsidiaries. In addition to the above, Mr. Surber is a personal guarantor to notes payable by the Company with remaining principal balances of $103,789. Subsequent to March 31, 2015, Mr. Surber continues to provide his personal guaranty for several lines of credit, credit cards, and loans that are being utilized by the Company and its subsidiaries. The total amount of these credit obligations could exceed the amount of $300,000 from time to time. | |||
On March 24, 2015, Green Endeavors, Inc. and Landis Salons, Inc. (the "Company") issued a promissory note to Richard Surber, President, CEO and Director of Green, in the principal amount of $25,082 for funds loaned. The note bears interest at the rate of 18% per annum, has a maturity date of March 12, 2018, and requires monthly payments of $806. The Company shall be credited for satisfaction of the note for any payment that it makes of a loan that Mr. Surber is obligated to pay to Upstart Network, Inc., the reported source of the funds loan to the Company by Mr. Surber. |
Note_8_Debt
Note 8 - Debt | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes | |||||
Note 8 - Debt | Note 8 – Debt | ||||
During the three month period ending March 31, 2015, the Company has entered into four new loan agreements in the total amount of $199,962. | |||||
A summary of the new note payable as of March 31, 2015 and December 31, 2014 is as follows: | |||||
Interest | Maturity | March 31, | December 31, | ||
Creditor | Rate | Date | 2015 | 2014 | |
American Express Bank, FSB (1) | 11.13% | 2/3/17 | $78,352 | - | |
Total | 78,352 | - | |||
Less: Current portion | -40,503 | - | |||
Long-term portion | $37,849 | - | |||
A summary of the new convertible notes payable as of March 31, 2015 and December 31, 2014 is as follows: | |||||
Interest | Maturity | March 31, | December 31, | ||
Creditor | Rate | Date | 2015 | 2014 | |
KBM Worldwide, Inc. (2) | 8.00% | 10/28/15 | $64,000 | - | |
LG Capital Funding, LLC (3) | 8.00% | 3/25/16 | 34,000 | - | |
Debt discount - convertible notes, net | -79,516 | - | |||
Total, net | 18,484 | - | |||
Less: Current portion | -18,484 | - | |||
Long-term portion | - | - | |||
A summary of the new related party note payable as of March 31, 2015 and December 31, 2014 is as follows: | |||||
Interest | Maturity | March 31, | December 31, | ||
Creditor | Rate | Date | 2015 | 2014 | |
Richard D. Surber (related party) (4) | 18.00% | 3/12/18 | $25,082 | - | |
Total | 25,082 | - | |||
Less: Current portion | -5,767 | - | |||
Long-term portion | $19,315 | - | |||
(1) On February 3, 2015, the Landis Salons II, Inc. entered into a loan agreement with American Express Bank, FSB in the amount of $74,000. The note is a merchant account financing arrangement wherein Landis repays the loan at the rate of 30% of the American Express credit card sales receipts that are collected each month. The loan requires a prepaid interest charge that is 12% ($8,880) of the $74,000 loan amount. These financing costs are being amortized monthly to interest expense during the two year term of the loan. The total amount due at the inception date is $82,880. As of March 31, 2015, the loan balance was $78,352. Payments made during the three months ended March 31, 2015, amounted to $4,528. | |||||
(2) On January 26, 2015, pursuant to a Securities Purchase Agreement, Green issued a $64,000 Convertible Promissory Note (the "Note") to KBM Worldwide, Inc. (“KBM”) that matures October 28, 2015. The Note bears interest at a rate of 8% per annum and can be convertible into Green’s common shares, at the holder’s option, at the conversion rate of 58% of the market price (a 42% discount) of the average of the three lowest trading price of Green’s common shares during the ten-day period ending one trading day prior to the date of the conversion, subject to a limitation that KBM and its affiliates cannot at any time hold, as a result of conversion, more than 9.99% of the outstanding common stock of Green. Green analyzed the conversion feature of the agreement for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the embedded conversion features should be classified as a derivative because the exercise price of these convertible notes are subject to “reset” provisions in the event the Company subsequently issues common stock, stock warrants, stock options or convertible debt with a stock price, exercise price or conversion price lower than conversion price of these notes. If these provisions are triggered, the conversion price of the note will be reduced. The Company has determined that the conversion feature is not considered to be solely indexed to the Company’s own stock and is therefore not afforded equity treatment. In accordance with AC 815, the Company has bifurcated the conversion feature of the note and recorded a derivative liability. The embedded derivative for the KBM Note is carried on Green’s balance sheet at fair value. The derivative liability is marked-to-market each measurement period and any unrealized change in fair value is recorded as a component of the income statement and the associated fair value carrying amount on the balance sheet is adjusted by the change. Green fair values the embedded derivative using the Black-Scholes option pricing model. The fair value of the derivative at the inception date of the KBM note was $60,048, which was recorded on the balance sheet. $60,048 was recorded as a debt discount on the balance sheet and $0 was recorded as a credit to non-cash interest expense. As of March 31, 2015, the balance of the note was $64,000 and the balance of the debt discount was $46,073. No payments were made on the note during the three months ended March 31, 2015. | |||||
(3) On March 25, 2015, pursuant to a Securities Purchase Agreement, Green issued a $34,000 Convertible Promissory Note (the "Note") to LG Capital Funding, LLC (“LGCF") that matures March 25, 2016. The Note bears interest at a rate of 8% per annum and can be convertible into Green’s common shares, at the holder’s option, at the conversion rate of 58% (a 42% discount) of the average of the three lowest trading price of Green’s common shares during the eighteen-day period ending on the trading day of the conversion notice date, subject to a limitation that LGCF and its affiliates cannot at any time hold, as a result of conversion, more than 9.99% of the outstanding common stock of Green. Green analyzed the conversion feature of the agreement for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the embedded conversion features should be classified as a derivative because the exercise price of these convertible notes are subject to “reset” provisions in the event the Company subsequently issues common stock, stock warrants, stock options or convertible debt with a stock price, exercise price or conversion price lower than conversion price of these notes. If these provisions are triggered, the conversion price of the note will be reduced. The Company has determined that the conversion feature is not considered to be solely indexed to the Company’s own stock and is therefore not afforded equity treatment. In accordance with AC 815, the Company has bifurcated the conversion feature of the note and recorded a derivative liability. The embedded derivative for the LGCF Note is carried on Green’s balance sheet at fair value. The derivative liability is marked-to-market each measurement period and any unrealized change in fair value is recorded as a component of the income statement and the associated fair value carrying amount on the balance sheet is adjusted by the change. Green fair values the embedded derivative using the Black-Scholes option pricing model. The fair value of the derivative at the inception date of the LGCF note was $40,018, which was recorded on the balance sheet. $34,000was recorded as a debt discount on the balance sheet and $6,018 was recorded as non-cash interest expense. As of March 31, 2015, none of the note had been converted into shares of common stock. As of March 31, 2015, the balance of the note was $34,000and the balance of the debt discount was $33,443.No payments have been made on the note as of March 31, 2015. | |||||
The exercise price of these convertible notes are subject to “reset” provisions in the event the Company subsequently issues common stock, stock warrants, stock options or convertible debt with a stock price, exercise price or conversion price lower than conversion price of these notes. If these provisions are triggered, the conversion price of the note will be reduced. As a result, the Company has determined that the conversion feature is not considered to be solely indexed to the Company’s own stock and is therefore not afforded equity treatment. In accordance with AC 815, the Company has bifurcated the conversion feature of the note and recorded a derivative liability (see Note 6 - Derivative Liability). | |||||
(4) On March 24, 2015, Green Endeavors, Inc. and Landis Salons, Inc. (the "Company") issued a promissory note to Richard Surber, President, CEO and Director of Green, in the principal amount of $25,082 for funds loaned. The note bears interest at the rate of 18% per annum, has a maturity date of March 12, 2018, and requires monthly payments of $806. The Company shall be credited for satisfaction of the note for any payment that it makes of a loan that Mr. Surber is obligated to pay to Upstart Network, Inc., the reported source of the funds loan to the Company by Mr. Surber. As of March 31, 2015, the balance of the note was $25,082. No principal payments have been made on the note as of March 31, 2015. Mr. Surber is also providing his personal guaranty for several lines of credit and credit cards that are being utilized by the company and its operating subsidiaries. | |||||
As of March 31, 2015, Mr. Surber is a personal guarantor to various notes payable by the Company with remaining principal balances of $103,787. Subsequent to March 31, 2015, Mr. Surber continues to provide his personal guaranty for several lines of credit, credit cards, and loans that are being utilized by the Company and its subsidiaries. The total amount of these credit obligations could exceed the amount of $300,000 from time to time. |
Note_9_Settlement_of_Convertib
Note 9 - Settlement of Convertible Note Payable | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Note 9 - Settlement of Convertible Note Payable | Note 9 – Settlement of Convertible Note Payable |
On January 13, 2015, Green Endeavors entered into a Settlement Agreement and Release for the litigation between itself and Southridge Partners as described in Note 10 below. The settlement required that Southridge deliver to Green 14,205 shares of Green's series B preferred convertible stock and deliver, release, and mark satisfied in full the August 15, 2013, $75,000 promissory note that Green had issued to Southridge. In return, on January 14, 2015 Green issued to Southridge 10,230,000 shares of its common stock at a price of $0.0035 for a value of $35,805, resulting in a non-cash gain on settlement of debt of $39,195. |
Note_10_Stockholders_Deficit
Note 10 - Stockholders' Deficit | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Note 10 - Stockholders' Deficit | Note 10 – Stockholders’ Deficit |
Preferred Stock | |
Green is authorized to issue 15,000,000 shares of preferred stock (par value $.001 per share). Green’s preferred stock may be divided into such series as may be established by the Board of Directors. As of March 31, 2015, Green has designated 12,000,000 of the preferred stock into two series as follows: 2,000,000 shares of Convertible Series B Preferred and 10,000,000 shares of Convertible Supervoting Preferred. | |
The Preferred Stock is classified as equity as long as there are sufficient shares available to effect the conversion. In some instances certain contracts may pass the option to receive cash or common stock to the shareholder. In this case, it is assumed that a cash settlement will occur and balance sheet classification of the affected Preferred Stock and related preferred paid-in capital as a liability. | |
Convertible Supervoting Preferred Stock | |
Each share of the Convertible Supervoting Preferred Stock is convertible into 100 shares of Green’s Common stock and has the voting rights equal to 100 shares of common stock. | |
During the three month period ended March 31, 2015, there were no issuances or conversions of Convertible Supervoting Preferred shares. | |
As of March 31, 2015 and December 31, 2014, Green had 10,000,000 and 10,000,000 shares of Convertible Supervoting Preferred stock issued and outstanding, respectively. | |
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. | |
On January 13, 2015, Green Endeavors entered into a Settlement Agreement and Release for the litigation between itself and Southridge Partners as described in Note 9 above. The settlement required that Southridge deliver to Green 14,205 shares of Green's series B preferred convertible stock and deliver, release, and mark satisfied in full the August 15, 2013, $75,000 promissory note that Green had issued to Southridge. In return, on January 14, 2015 Green issued to Southridge 10,230,000 shares of its common stock at a price of $0.0035 for a value of $35,805, resulting in a non-cash gain on settlement of debt of $39,195. | |
On January 23, 2015, the Board of Directors approved the conversions of 3,900 shares of Series B Preferred shares into 4,924,242 shares of Common Stock. The shares were converted at prices per share of approximately $0.00396 based on the conversion provisions for the Convertible Series B Preferred Stock designation. | |
As of March 31, 2015 and December 31, 2014, Green had 742,383 and 760,488 shares of Convertible Series B Preferred stock issued and outstanding, respectively. | |
Common Stock | |
Green is authorized to issue 10,000,000,000 shares of common stock (par value $0.0001 per share). | |
As of March 31, 2015 and December 31, 2014, Green had 246,568,747 and 195,414,505 shares of common stock issued and outstanding, respectively. This 51,154,242 increase of common shares is due to the conversion of 3,900 shares of Convertible Series B Preferred stock into 4,924,242 shares of Common Stock mentioned above; the partial conversion of the $75,000 promissory note to 10,230,000 shares mentioned above; and the exercising of 36,000,000 options issued (see Note 11 – Stock Based Compensation). |
Note_11_Stockbased_Compensatio
Note 11 - Stock-based Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Note 11 - Stock-based Compensation | Note 11 – Stock-Based Compensation |
On December 2, 2011, the Board of Directors approved a stock-based compensation program entitled The 2011 Benefit Plan of Green Endeavors, Inc. (the “Plan”) wherein common stock options are granted to employees. A total of 1,500,000 shares of the Green’s common stock (par value $0.0001) are authorized to be issued or granted to employees (“Employees”) under the Plan. Employees include actual employees or certain non-employee, consultants and advisors of Green, its subsidiaries, and parent company. The Plan is designed to attract and retain employees. | |
On January 21, 2015, the Board of Directors approved a stock-based compensation plan entitled The 2015 Benefit Plan of Green Endeavors Inc. (the “2015 Plan”) wherein common stock options are granted to employees of the Company. A total of 80,000,000 shares of the Company’s common stock (par value $0.0001) are authorized to be issued or granted to employees under the 2015 Plan. Employees as designated by the 2015 Plan include actual employees and others, consultants and advisors to the Company, its subsidiaries and the parent company. The 2015 Plan is designed to attract and retain employees. | |
As of March 31, 2015, the Company has granted 36,000,000 stock options to three employees for services provided to the Company. The stock based-compensation expense of $74,073 was accounted for under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant. The weighted average components used for the calculation of the fair value for the options granted were approximately between: $0.0015 - $0.0027 exercise price, one year term, 162.49% – 164.25% volatility, and 0.17% – 0.26% risk free rates. | |
Under the 2015 Plan, the Company has granted stock options to three employees during the three months ended March 31, 2015 at option prices ranging from $0.0045 to $0.006 per share for an aggregate of 36,000,000 shares. Each of the three employees exercised the options on the same day they were granted by each issuing a promissory notes to the Company in the aggregate amount of $198,000 appearing on the balance sheet as subscription receivable. The promissory notes mature in 12 months from their issuance date and the Company is entitled to 4% interest per annum. The accrued interest receivable is included in notes receivable – current. For the three months ended March 31, 2015, there were no expired or cancelled grants. As of March 31, 2015, there were 44,000,000 and 470,000 shares available for future stock-based compensation grants between the 2015 plan and the 2011 plan, respectively. |
Note_12_Litigation
Note 12 - Litigation | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Note 12 - Litigation | Note 12 – Litigation |
Southridge Partners II, LP, v. Green Endeavors, Inc. This action was filed on or about August 13, 2014 in the State Courts of Connecticut and was subsequently removed to the United States District Court, District of Connecticut, Case No. 3:13-cv-01358 (SRU). Suit was filed based upon the breach in the payment of promissory note in the face amount of $75,000 and the refusal by Green Endeavors to allow Southridge Partners to convert shares of preferred stock. Green Endeavors filed a counterclaim and an answer denying the claims to damages alleged by Southridge and seeking to recover damages resulting from Southridge’s Breach of Contract, Breach of the Implied Covenant of Good Faith and Fair Dealing and Negligent Misrepresentation-Fraud in the Inducement. On January 13, 2015, the parties entered into a Settlement Agreement and Release whereby they have settled the litigation (see Note 9 – “Settlement of Convertible Debt” for details of the agreement) As of March 31, 2015, the $75,000 amount owed to Southridge has been removed from the balance sheet per the settlement agreement. |
Note_13_Concentration_of_Risk
Note 13 - Concentration of Risk | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Note 13 - Concentration of Risk | Note 13 – Concentration of Risk |
Supplier Concentrations | |
The Company purchases most of its salon inventory that is used for service and product sales from Aveda . Aveda product purchases for the three months ended March 31, 2015 and for the year ended December 31, 2014 accounted for approximately 99% and 99%, respectively, of salon products purchased. | |
Market or Geographic Area Concentrations | |
100% of the Company's sales are in the salon services and products market and are concentrated in the Salt Lake City, Utah geographic area. |
Note_14_Going_Concern
Note 14 - Going Concern | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Note 14 - Going Concern | Note 14 – Going Concern |
Generally accepted accounting principles in the United States of America contemplate the continuation of Green as a going concern. As of and for the three months ended March 31, 2015, Green had negative working capital of $777,030 and a net loss of $277,796 respectively, which raises substantial doubt about Green’s ability to continue as a going concern. Green’s ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to successfully fulfill its business plan. Management plans to attempt to raise additional funds to finance the operating and capital requirements of Green through a combination of equity and debt financings. While Green is making its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be sufficient for operations. |
Note_15_Subsequent_Events
Note 15 - Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Note 15 - Subsequent Events | Note 15 – Subsequent Events |
In accordance with ASC 855-10 Company management reviewed all material events through the date of this report and there are no additional material subsequent events to report. |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |
Mar. 31, 2015 | ||
Policies | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Investments with original maturities of three months or less at the time of purchase are considered cash equivalents. As of March 31, 2015 and December 31, 2014, Green had no cash equivalents. | ||
Inventory | Inventory | |
Inventory consists of items held for resale and is carried at the lower of cost or market. Cost is determined using the first in, first out (“FIFO”) method. | ||
Property, Plant, and Equipment | Property, Plant, and Equipment | |
Property, plant, and equipment are stated at historical cost. Depreciation is generally provided over the estimated useful lives, using the straight-line method, as follows: | ||
Leasehold improvements | Shorter of the lease term or the estimated useful life | |
Computer equipment and related software | 3 years | |
Furniture and fixtures | 3-10 years | |
Equipment | 3-10 years | |
Vehicle | 7 years | |
Signage | 10 years | |
For the three month periods ended March 31, 2015 and 2014, Green recorded depreciation expense of $32,648 and $32,926, respectively. | ||
Long-Lived Assets | Long-Lived Assets | |
We periodically review the carrying amount of our long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the carrying amount of the asset. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Fair value is generally determined based on discounted future cash flow. There were no impairments of long-lived assets during the three month periods ended March 31, 2015 and 2014. | ||
Fair Value Measurements | Fair Value Measurements | |
The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: | ||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | ||
Level 2: Observable market-based inputs or inputs that are corroborated by market data. | ||
Level 3: Unobservable inputs that are not corroborated by market data. | ||
Revenue Recognition | Revenue Recognition | |
There are two primary two types of revenue for the Company: 1) providing hair salon services, and 2) selling hair salon products. Revenue is recognized at the time the service is performed or the product is delivered. All revenue sources are domestic. In some cases, such as the sale of gift cards, revenue is deferred until the gift card is redeemed. | ||
Deferred Revenue | Deferred Revenue | |
Deferred revenue arises when customers pay for products and/or services in advance of revenue recognition. Green’s deferred revenue consists solely of unearned revenue associated with the purchase of gift certificates for which revenue is recognized only when the service is performed or the product is delivered. As of March 31, 2015 and December 31, 2014, deferred revenue was $54,020 and $62,755, respectively. | ||
Advertising | Advertising | |
The Company expenses advertising production costs as they are incurred and advertising communication costs the first time the advertising takes place. For the three month period ended March 31, 2015 and 2014, advertising costs amounted to $25,108 and $19,472, respectively. | ||
Stock-Based Compensation | Stock-Based Compensation | |
Green recognizes the cost of employee services received in exchange for awards of equity instruments as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the fair value of the restricted stock award, option, or purchase right and is recognized as expense, less expected forfeitures, over the requisite service period, which typically equals the vesting period. Because the employee is expected to and has historically received shares of common stock on or about the date of the employee stock option grant date as part of the exercise process, the fair value of each stock issuance is determined using the fair value of Green’s common stock on the grant date. | ||
Income Taxes | Income Taxes | |
Deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Also, Green's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Green is 100% consolidated into its parent company, SAKL, and therefore does not file an income tax return. Its financial amounts are consolidated into the SAKL income tax returns. As of March 31, 2015 and December 31, 2014, a 100% valuation allowance has been placed against the deferred tax asset and therefore is not reflected on the balance sheets. | ||
Net Loss Per Share | Net Loss Per Share | |
Net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the specified period. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares and potential common shares during the specified period. For the three months ended March 31, 2015, potential common shares are not included in the diluted net loss per share calculation as their effect would be anti-dilutive. Such potentially dilutive shares are excluded when the effect would be to reduce net loss per share. There were approximately 3,220,829,732 such potentially dilutive shares excluded as of March 31, 2015. | ||
Reclassification of Financial Statement Accounts | Reclassification of Financial Statement Accounts | |
Certain amounts in the December 31, 2014 financial statements have been reclassified to conform to the presentation in the March 31, 2015 financial statements. | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
Management believes the impact of recently issued standards and updates, which are not yet effective, will not have a material impact on Green’s consolidated financial position, results of operations or cash flows upon adoption. |
Note_4_Property_Plant_and_Equi1
Note 4 - Property, Plant, and Equipment: Schedule of Property, Plant and Equipment (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Tables/Schedules | ||||
Schedule of Property, Plant and Equipment | The following is a summary of Green’s Property, plant, and equipment by major category as of March 31, 2015: | |||
Cost | Accumulated Depreciation | Net | ||
Computer equipment and related software | $39,247 | $24,268 | $14,979 | |
Construction in process | 1,000 | - | 1,000 | |
Leasehold improvements | 630,834 | 428,806 | 202,028 | |
Furniture and fixtures | 27,201 | 22,923 | 4,278 | |
Leased equipment | 76,298 | 42,618 | 33,680 | |
Equipment | 285,006 | 194,943 | 90,063 | |
Vehicle | 48,193 | 34,424 | 13,769 | |
Signage | 25,154 | 11,993 | 13,161 | |
Total | $1,132,933 | $759,975 | $372,958 | |
The following is a summary of Green’s Property, plant, and equipment by major category as of December 31, 2014: | ||||
Cost | Accumulated Depreciation | Net | ||
Computer equipment and related software | $39,247 | $22,189 | $17,058 | |
Construction in process | 24,905 | - | 24,905 | |
Leasehold improvements | 625,004 | 410,010 | 214,994 | |
Furniture and fixtures | 27,201 | 22,117 | 5,084 | |
Leased equipment | 76,298 | 38,803 | 37,495 | |
Equipment | 263,478 | 190,114 | 73,364 | |
Vehicle | 48,193 | 32,703 | 15,490 | |
Signage | 25,154 | 11,392 | 13,762 | |
Total | $1,129,480 | $727,328 | $402,152 |
Note_5_Fair_Value_Measurements1
Note 5 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Tables/Schedules | |||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Our financial assets and (liabilities) carried at fair value measured on a recurring basis as of March 31, 2015 and December 31, 2014, consisted of the following: | ||||
Total fair | Quoted prices | Significant other | Significant | ||
value at | in active | observable | unobservable | ||
March 31, | markets | inputs | inputs | ||
Description | 2015 | (Level) | (Level 2) | (Level) | |
Derivative liability (1) | $161,870 | - | $161,870 | - | |
Total fair | Quoted prices | Significant other | Significant | ||
value at | in active | Observable | unobservable | ||
December 31, | markets | Inputs | inputs | ||
Description | 2014 | (Level) | (Level 2) | (Level) | |
Derivative liability (1) | $31,424 | - | $31,424 | - | |
(1) Derivative liability amounts are due to the embedded derivatives of certain convertible notes payable issued by the Company and are calculated using the Black Scholes pricing model (see Note 6 - Derivative liability) |
Note_7_Related_Party_Transacti1
Note 7 - Related Party Transactions: Schedule of Related Partiy Debentures (Tables) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Tables/Schedules | |||
Schedule of Related Partiy Debentures | The following table shows the related party debenture and the amortized debt discount amounts: | ||
March 31, | December 31, | ||
2015 | 2014 | ||
Convertible Debenture - Related Party | |||
Principal amount | $2,213,591 | $2,213,591 | |
Debt discount | -38,610 | -41,741 | |
Convertible debenture, net of debt discount | $2,174,981 | $2,171,850 |
Note_8_Debt_Schedule_of_Notes_
Note 8 - Debt: Schedule of Notes Payable (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Tables/Schedules | |||||
Schedule of Notes Payable | A summary of the new note payable as of March 31, 2015 and December 31, 2014 is as follows: | ||||
Interest | Maturity | March 31, | December 31, | ||
Creditor | Rate | Date | 2015 | 2014 | |
American Express Bank, FSB (1) | 11.13% | 2/3/17 | $78,352 | - | |
Total | 78,352 | - | |||
Less: Current portion | -40,503 | - | |||
Long-term portion | $37,849 | - | |||
A summary of the new convertible notes payable as of March 31, 2015 and December 31, 2014 is as follows: | |||||
Interest | Maturity | March 31, | December 31, | ||
Creditor | Rate | Date | 2015 | 2014 | |
KBM Worldwide, Inc. (2) | 8.00% | 10/28/15 | $64,000 | - | |
LG Capital Funding, LLC (3) | 8.00% | 3/25/16 | 34,000 | - | |
Debt discount - convertible notes, net | -79,516 | - | |||
Total, net | 18,484 | - | |||
Less: Current portion | -18,484 | - | |||
Long-term portion | - | - | |||
A summary of the new related party note payable as of March 31, 2015 and December 31, 2014 is as follows: | |||||
Interest | Maturity | March 31, | December 31, | ||
Creditor | Rate | Date | 2015 | 2014 | |
Richard D. Surber (related party) (4) | 18.00% | 3/12/18 | $25,082 | - | |
Total | 25,082 | - | |||
Less: Current portion | -5,767 | - | |||
Long-term portion | $19,315 | - |
Note_1_Nature_of_Operations_an1
Note 1 - Nature of Operations and Basis of Presentation (Details) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Entity Incorporation, Date of Incorporation | 25-Apr-02 | |
Common Stock, Shares Authorized | 10,000,000,000 | 10,000,000,000 |
Preferred Stock, Shares Authorized | 15,000,000 | |
Landis Salons Inc | ||
Entity Incorporation, Date of Incorporation | 4-May-05 | |
Landis Salons II Inc | ||
Entity Incorporation, Date of Incorporation | 17-Mar-10 | |
Landis Experience Center LLC | ||
Entity Incorporation, Date of Incorporation | 23-Jan-12 | |
Nexia Holdings, Inc. | ||
Ownership percentage of controlling interest | 50.00% | |
OTC PINK MARKETPLACE | ||
Trading Symbol | GRNE | |
Undesignated Preferred Stock | ||
Preferred Stock, Shares Authorized | 3,000,000 | |
Convertible Series B Preferred Stock | ||
Preferred Stock, Shares Authorized | 2,000,000 | |
Convertible Supervoting Preferred Stock | ||
Preferred Stock, Shares Authorized | 10,000,000 |
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Details | ||
Cash Equivalents | $0 | $0 |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies: Property, Plant, and Equipment (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Depreciation | $32,648 | $32,926 |
Leasehold Improvements | ||
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the lease term or the estimated useful life | |
Computer Equipment | ||
Estimated Useful Life | 3 years | |
Furniture and Fixtures | Minimum | ||
Estimated Useful Life | 3 years | |
Furniture and Fixtures | Maximum | ||
Estimated Useful Life | 10 years | |
Equipment | Minimum | ||
Estimated Useful Life | 3 years | |
Equipment | Maximum | ||
Estimated Useful Life | 10 years | |
Vehicles | ||
Estimated Useful Life | 7 years | |
Signage | ||
Estimated Useful Life | 10 years |
Note_2_Summary_of_Significant_4
Note 2 - Summary of Significant Accounting Policies: Long-Lived Assets (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Details | ||
Impairment of Long-Lived Assets | $0 | $0 |
Note_2_Summary_of_Significant_5
Note 2 - Summary of Significant Accounting Policies: Deferred Revenue (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Details | ||
Deferred revenue | $54,020 | $62,755 |
Note_2_Summary_of_Significant_6
Note 2 - Summary of Significant Accounting Policies: Advertising (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Details | ||
Advertising Costs | $25,108 | $19,472 |
Note_2_Summary_of_Significant_7
Note 2 - Summary of Significant Accounting Policies: Net Loss Per Share (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Details | |
Antidilutive Securities, Excluded from Earnings Per Share | 3,220,829,732 |
Note_3_Inventory_Details
Note 3 - Inventory (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Details | ||
Inventory | $142,756 | $152,758 |
Note_4_Property_Plant_and_Equi2
Note 4 - Property, Plant, and Equipment: Schedule of Property, Plant and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Cost | $1,132,933 | $1,129,480 |
Accumulated Depreciation | 759,975 | 727,328 |
Net | 372,958 | 402,152 |
Computer Equipment | ||
Cost | 39,247 | 39,247 |
Accumulated Depreciation | 24,268 | 22,189 |
Net | 14,979 | 17,058 |
Construction In Process | ||
Cost | 1,000 | 24,905 |
Accumulated Depreciation | 0 | 0 |
Net | 1,000 | 24,905 |
Leasehold Improvements | ||
Cost | 630,834 | 625,004 |
Accumulated Depreciation | 428,806 | 410,010 |
Net | 202,028 | 214,994 |
Furniture and Fixtures | ||
Cost | 27,201 | 27,201 |
Accumulated Depreciation | 22,923 | 22,117 |
Net | 4,278 | 5,084 |
Leased Equipment | ||
Cost | 76,298 | 76,298 |
Accumulated Depreciation | 42,618 | 38,803 |
Net | 33,680 | 37,495 |
Equipment | ||
Cost | 285,006 | 263,478 |
Accumulated Depreciation | 194,943 | 190,114 |
Net | 90,063 | 73,364 |
Vehicles | ||
Cost | 48,193 | 48,193 |
Accumulated Depreciation | 34,424 | 32,703 |
Net | 13,769 | 15,490 |
Signage | ||
Cost | 25,154 | 25,154 |
Accumulated Depreciation | 11,993 | 11,392 |
Net | $13,161 | $13,762 |
Note_5_Fair_Value_Measurements2
Note 5 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative liability | $161,870 | $31,424 | $31,424 |
Fair Value, Inputs, Level 1 | |||
Derivative liability | 0 | 0 | |
Fair Value, Inputs, Level 2 | |||
Derivative liability | 161,870 | 31,424 | |
Fair Value, Inputs, Level 3 | |||
Derivative liability | $0 | $0 |
Note_6_Derivative_Liability_De
Note 6 - Derivative Liability (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 17, 2012 | Jan. 26, 2015 | Mar. 25, 2015 | |
Derivative liability | $161,870 | $31,424 | $31,424 | |||||
Gain (loss) on derivative fair value adjustment | -30,380 | 7,766 | ||||||
Debt Discount | 94,048 | |||||||
Interest expense | 37,962 | 31,094 | ||||||
Convertible Debt Securities | ||||||||
Debt Discount | -79,516 | 0 | ||||||
Eastshore Note | ||||||||
Derivative liability | 63,636 | |||||||
Gain (loss) on derivative fair value adjustment | -15,281 | |||||||
Fair Value Measurements, Valuation Techniques | Black-Scholes option pricing model | |||||||
Fair Value of Derivative Liability | 46,705 | 63,636 | ||||||
Debt Discount | 35,000 | |||||||
Interest Expense, Debt | 28,636 | |||||||
Dividend yield | 0.00% | |||||||
Expected volatility | 197.97% | |||||||
Risk-free interest rate | 0.14% | |||||||
Expected life | 6 months | |||||||
Estimated fair value of Green's common stock | $0.00 | |||||||
Eastshore Note | Convertible Debt Securities | ||||||||
Debt Instrument, Face Amount | 35,000 | |||||||
Maturity Date of Promissory Note | 17-Aug-14 | |||||||
Stated Interest Rate, Percentage | 8.00% | |||||||
KBM Worldwide Note | ||||||||
Gain (loss) on derivative fair value adjustment | -13,626 | |||||||
Fair Value Measurements, Valuation Techniques | Black-Scholes option pricing model | |||||||
Fair Value of Derivative Liability | 73,674 | 60,048 | ||||||
Debt Discount | 46,073 | 60,048 | ||||||
Dividend yield | 0.00% | |||||||
Expected volatility | 187.19% | |||||||
Risk-free interest rate | 0.13% | |||||||
Expected life | 6 months 29 days | |||||||
Estimated fair value of Green's common stock | $0.00 | |||||||
Interest expense | 0 | |||||||
KBM Worldwide Note | Convertible Debt Securities | ||||||||
Debt Instrument, Face Amount | 64,000 | |||||||
Maturity Date of Promissory Note | 28-Oct-15 | |||||||
Stated Interest Rate, Percentage | 8.00% | |||||||
Convertible Promissory Note, Terms of Conversion | convertible into Green’s common shares, at the holder’s option, at the conversion rate of 58% of the market price (a 42% discount) of an average of the lowest trading price of Green’s common shares during the ten-day period ending one trading day prior to the date of the conversion | |||||||
LG Capital Funding Note | ||||||||
Gain (loss) on derivative fair value adjustment | -1,473 | |||||||
Fair Value of Derivative Liability | 41,491 | 40,018 | ||||||
Debt Discount | 34,000 | |||||||
Dividend yield | 0.00% | |||||||
Expected volatility | 155.95% | |||||||
Risk-free interest rate | 0.26% | |||||||
Expected life | 1 year | |||||||
Estimated fair value of Green's common stock | $0.00 | |||||||
Interest expense | -6,018 | |||||||
LG Capital Funding Note | Convertible Debt Securities | ||||||||
Debt Instrument, Face Amount | 34,000 | |||||||
Maturity Date of Promissory Note | 25-Mar-16 | |||||||
Stated Interest Rate, Percentage | 8.00% | |||||||
Debt Discount | $33,443 | $34,000 | ||||||
Convertible Promissory Note, Terms of Conversion | convertible into Green's common shares, at the holder's option, at the conversion rate of 58% of the market price (a 42% discount) of an average of the lowest trading price of Green's common shares during the eighteen-day period ending on the date of the conversion. |
Note_7_Related_Party_Transacti2
Note 7 - Related Party Transactions (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2014 | Mar. 24, 2015 | Apr. 30, 2008 | |
Debt Discount | $94,048 | |||||
Notes payable related party | 19,315 | |||||
Notes payable | 115,569 | 114,147 | ||||
Interest Payable, Current | 0 | |||||
Due to related parties | 53,373 | 77,132 | ||||
Sack Lunch Productions, Inc. | ||||||
Due to related parties | 48,349 | 73,428 | ||||
Richard Surber | ||||||
Stated Interest Rate, Percentage | 18.00% | 18.00% | ||||
Debt Instrument, Face Amount | 25,082 | |||||
Notes payable | 19,315 | 0 | ||||
Line of Credit, Current | 103,787 | |||||
Maturity Date of Promissory Note | 12-Mar-18 | |||||
Debt Instrument, Frequency of Periodic Payment | Monthly | |||||
Principal Payments on Note, Amount | 806 | |||||
Richard Surber | Interest | ||||||
Due to related parties | 5,024 | 3,704 | ||||
Nexia Holdings, Inc. | ||||||
Line of Credit, Current | 103,789 | |||||
Stock Transfer Agreement | ||||||
Stated Interest Rate, Percentage | 8.00% | |||||
Debt Instrument, Face Amount | 3,000,000 | |||||
Convertible Promissory Note, Terms of Conversion | DHI has the option, at any time, to convert all or any amount over $10,000 of principal face amount and accrued interest into shares of Common stock, $0.0001 par value per share, at a conversion price equal to 95% of the average closing bid price of the Common stock three days prior to the date notice is received by Green. | |||||
Debt Discount | 150,000 | |||||
Debt Discount Amortization Period | 10 years | |||||
Debt Conversion, Original Debt, Amount | 125,000 | |||||
Repayments of Debt | 15,200 | |||||
Debt instrument, holdings sold to unrelated parties for cash | 500,000 | |||||
Notes payable related party | 2,359,800 | |||||
Notes payable | 500,000 | |||||
Principal Amount | $2,859,800 |
Note_7_Related_Party_Transacti3
Note 7 - Related Party Transactions: Schedule of Related Partiy Debentures (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Convertible debentures, net of debt discount | $2,174,981 | $2,171,850 |
Convertible Debenture - Related Party | ||
Principal Amount | 2,213,591 | 2,213,591 |
Debt discount | ($38,610) | ($41,741) |
Note_8_Debt_Details
Note 8 - Debt (Details) (USD $) | 3 Months Ended | ||||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 24, 2015 | Dec. 31, 2014 | Jan. 26, 2015 | Mar. 25, 2015 | Feb. 03, 2015 | |
Outstanding Loans | $199,962 | ||||||
Payments made on notes payable | 47,026 | 13,186 | |||||
Debt Discount | 94,048 | ||||||
Interest expense | 37,962 | 31,094 | |||||
Richard Surber | |||||||
Debt Instrument, Face Amount | 25,082 | ||||||
Maturity Date of Promissory Note | 12-Mar-18 | ||||||
Stated Interest Rate, Percentage | 18.00% | 18.00% | |||||
Debt Instrument, Frequency of Periodic Payment | Monthly | ||||||
Principal Payments on Note, Amount | 806 | ||||||
Line of Credit, Current | 103,787 | ||||||
Convertible Debt Securities | |||||||
Debt Discount | -79,516 | 0 | |||||
KBM Worldwide Note | |||||||
Principal Amount | 64,000 | ||||||
Fair Value of Derivative Liability | 73,674 | 60,048 | |||||
Debt Discount | 46,073 | 60,048 | |||||
Interest expense | 0 | ||||||
KBM Worldwide Note | Convertible Debt Securities | |||||||
Debt Instrument, Face Amount | 64,000 | ||||||
Maturity Date of Promissory Note | 28-Oct-15 | ||||||
Stated Interest Rate, Percentage | 8.00% | ||||||
Convertible Promissory Note, Terms of Conversion | convertible into Green’s common shares, at the holder’s option, at the conversion rate of 58% of the market price (a 42% discount) of an average of the lowest trading price of Green’s common shares during the ten-day period ending one trading day prior to the date of the conversion | ||||||
LG Capital Funding Note | |||||||
Fair Value of Derivative Liability | 41,491 | 40,018 | |||||
Debt Discount | 34,000 | ||||||
Interest expense | -6,018 | ||||||
LG Capital Funding Note | Convertible Debt Securities | |||||||
Debt Instrument, Face Amount | 34,000 | ||||||
Principal Amount | 34,000 | ||||||
Maturity Date of Promissory Note | 25-Mar-16 | ||||||
Stated Interest Rate, Percentage | 8.00% | ||||||
Convertible Promissory Note, Terms of Conversion | convertible into Green's common shares, at the holder's option, at the conversion rate of 58% of the market price (a 42% discount) of an average of the lowest trading price of Green's common shares during the eighteen-day period ending on the date of the conversion. | ||||||
Debt Discount | 33,443 | 34,000 | |||||
American Express Bank, FSB | |||||||
Debt Instrument, Face Amount | 74,000 | ||||||
Debt Instrument, Interest Rate Terms | 30% of the American Express credit card sales receipts that are collected each month. | ||||||
Principal Amount | 78,352 | 82,880 | |||||
Payments made on notes payable | 4,528 | ||||||
Maturity Date of Promissory Note | 3-Feb-17 | ||||||
Stated Interest Rate, Percentage | 11.13% | ||||||
American Express Bank, FSB | Subsequent Event | |||||||
Debt Instrument, Fee Amount | $8,880 |
Note_8_Debt_Schedule_of_Notes_1
Note 8 - Debt: Schedule of Notes Payable (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 24, 2015 | Dec. 31, 2014 | |
Current portion of notes payable | $216,194 | $181,762 | |
Long-term portion | 115,569 | 114,147 | |
Debt Discount | 94,048 | ||
Current portion of convertible notes payable | 53,484 | 110,000 | |
Richard Surber | |||
Stated Interest Rate, Percentage | 18.00% | 18.00% | |
Maturity Date of Promissory Note | 12-Mar-18 | ||
Notes Payable | 25,082 | 0 | |
Current portion of notes payable | 5,767 | 0 | |
Long-term portion | 19,315 | 0 | |
Convertible Debt Securities | |||
Debt Discount | -79,516 | 0 | |
American Express Bank, FSB | |||
Stated Interest Rate, Percentage | 11.13% | ||
Maturity Date of Promissory Note | 3-Feb-17 | ||
Notes Payable | 78,352 | 0 | |
Current portion of notes payable | 40,503 | 0 | |
Long-term portion | 37,849 | 0 | |
KBM Worldwide, Inc. | |||
Stated Interest Rate, Percentage | 8.00% | ||
Maturity Date of Promissory Note | 28-Oct-15 | ||
Notes Payable | 64,000 | 0 | |
LG Capital Funding, LLC | |||
Stated Interest Rate, Percentage | 8.00% | ||
Maturity Date of Promissory Note | 25-Mar-16 | ||
Notes Payable | 34,000 | 0 | |
KBM Worldwide, Inc. and LG Capital Funding, LLC | |||
Convertible Notes Payable | 18,484 | 0 | |
Current portion of convertible notes payable | 18,484 | 0 | |
Long-term portion | $0 | $0 |
Note_9_Settlement_of_Convertib1
Note 9 - Settlement of Convertible Note Payable (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 14, 2015 | |
Conversion of Series B preferred stock to common stock | 492 | 2,350 | |
Gain on settlement of debt | $39,195 | $6,994 | |
Common Stock | |||
Conversion Price of Convertible Stock, Per Share | $0.00 | ||
Southridge Partners II, LP | Convertible Series B Preferred Stock | |||
Conversion of Stock, Shares Converted | 14,205 | ||
Debt Conversion, Original Debt, Amount | 75,000 | ||
Southridge Partners II, LP | Common Stock | |||
Debt Conversion, Original Debt, Amount | $35,805 | ||
Conversion of Series B preferred stock to common stock | 10,230,000 |
Note_10_Stockholders_Deficit_D
Note 10 - Stockholders' Deficit (Details) (USD $) | 3 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Jan. 23, 2015 | Jan. 14, 2015 | |
Preferred Stock, Shares Authorized | 15,000,000 | ||||
Preferred Stock, Par Value | $0.00 | ||||
Conversion of Series B preferred stock to common stock | 492 | 2,350 | |||
Gain on settlement of debt | $39,195 | $6,994 | |||
Common Stock, Shares Authorized | 10,000,000,000 | 10,000,000,000 | |||
Common Stock, Par Value | $0.00 | $0.00 | |||
Common Stock, Shares Outstanding | 246,568,747 | 195,414,505 | |||
Change in Shares Issued and Outstanding | 51,154,242 | ||||
Convertible Series B Preferred Stock | |||||
Preferred Stock, Shares Authorized | 2,000,000 | ||||
Preferred Stock, Shares Outstanding | 742,383 | 760,488 | |||
Convertible Preferred Stock, Terms of Conversion | 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. | ||||
Convertible Series B Preferred Stock | Investor | |||||
Conversion of Stock, Shares Converted | 3,900 | ||||
Conversion Price of Convertible Stock, Per Share | $0.00 | ||||
Convertible Series B Preferred Stock | Southridge Partners II, LP | |||||
Conversion of Stock, Shares Converted | 14,205 | ||||
Debt Conversion, Original Debt, Amount | 75,000 | ||||
Convertible Supervoting Preferred Stock | |||||
Preferred Stock, Shares Authorized | 10,000,000 | ||||
Convertible Preferred Stock, Shares Issued upon Conversion | 100 | ||||
Preferred Stock, Shares Outstanding | 10,000,000 | 10,000,000 | |||
Common Stock | |||||
Estimated fair value of Green's common stock | $0.00 | ||||
Conversion Price of Convertible Stock, Per Share | $0.00 | ||||
Common Stock | Investor | |||||
Reduction of convertible debt due to conversions | 4,924,242 | ||||
Common Stock | Southridge Partners II, LP | |||||
Debt Conversion, Original Debt, Amount | $35,805 | ||||
Conversion of Series B preferred stock to common stock | 10,230,000 |
Note_11_Stockbased_Compensatio1
Note 11 - Stock-based Compensation (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Stock based compensation | $74,073 |
2011 Benefit Plan of Green Endeavors, Inc. | Common Stock | |
Number of Shares Authorized | 1,500,000 |
Number of Shares Available for Grant | 470,000 |
2015 Benefit Plan of Green Endeavors, Inc. | |
Stock Options Granted | 36,000,000 |
Options, Fair Value Assumptions, Method Used | Black-Scholes valuation model |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year |
Options, Expected Volatility Rate, Minimum | 162.49% |
Options, Expected Volatility Rate, Maximum | 164.25% |
Options, Risk Free Interest Rate, Minimum | 0.17% |
Options, Risk Free Interest Rate, Maximum | 0.26% |
Debt Instrument, Face Amount | $198,000 |
Stated Interest Rate, Percentage | 4.00% |
2015 Benefit Plan of Green Endeavors, Inc. | Minimum | |
Options, Fair Value Assumptions, Exercise Price | $0.00 |
Exercise Price of Options Granted in Period | $0.00 |
2015 Benefit Plan of Green Endeavors, Inc. | Maximum | |
Options, Fair Value Assumptions, Exercise Price | $0.00 |
Exercise Price of Options Granted in Period | $0.01 |
2015 Benefit Plan of Green Endeavors, Inc. | Common Stock | |
Number of Shares Authorized | 80,000,000 |
Number of Shares Available for Grant | 44,000,000 |
Note_12_Litigation_Details
Note 12 - Litigation (Details) (Pending Litigation, Southridge Partners II, LP, USD $) | Mar. 31, 2015 |
Pending Litigation | Southridge Partners II, LP | |
Debt Instrument, Face Amount | $75,000 |
Note_13_Concentration_of_Risk_
Note 13 - Concentration of Risk (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Geographic Concentration Risk | ||
Concentration Risk, Percentage | 100.00% | |
Supplier Concentration Risk | ||
Concentration Risk, Percentage | 99.00% | 99.00% |
Note_14_Going_Concern_Details
Note 14 - Going Concern (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Details | ||
Working Capital | ($777,030) | |
Net loss | ($277,796) | ($117,158) |