Green Endeavors (GRNE) 10-Q 20 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 17, 2017
Details
Registrant Name	GREEN ENDEAVORS, INC.
Registrant CIK	1,487,997
SEC Form	10-Q
Period End date	Sep. 30, 2017
Fiscal Year End	--12-31
Trading Symbol	grne
Tax Identification Number (TIN)	273,270,121
Number of common stock shares outstanding		5,587,658
Filer Category	Smaller Reporting Company
Current with reporting	Yes
Voluntary filer	No
Well-known Seasoned Issuer	No
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Contained File Information, File Number	000-54018
Entity Incorporation, State Country Name	Utah
Entity Address, Address Line One	59 W 100 S, 2nd Floor
Entity Address, City or Town	Salt Lake City
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84,101

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current Assets:
Cash	$ 248,391	$ 347,284
Accounts receivable, net	13,056	15,397
Inventory	138,803	152,790
Prepaid expenses	0	124,167
Notes receivable, related party	401,478	248,778
Total current assets	801,728	888,416
Property, and equipment, net of accumulated depreciation of $1,048,004 and $969,934, respectively	193,909	269,831
Other assets	21,405	21,405
Total Assets	1,017,042	1,179,652
Current Liabilities:
Accounts payable and accrued expenses	438,884	363,075
Deferred revenue	71,495	86,223
Deferred rent	67,953	74,636
Due to related parties	706,155	632,802
Derivative liability	98,166	108,297
Current portion of notes payable, net of discount of $18,641 and $20,291, respectively	331,224	434,695
Current portion of notes payable, related party	61,559	61,559
Convertible note payable	35,000	35,000
Total current liabilities	1,810,436	1,796,287
Long-Term Liabilities:
Notes payable, net of current portion	39,197	50,397
Total long-term liabilities	39,197	50,397
Total Liabilities	1,849,633	1,846,684
Commitments and contingent liabilities	0	0
Stockholders' Deficit:
Common stock, $0.0001 par value, 2,000,000,000 shares authorized; 5,127,408 shares issued and outstanding at September 30, 2017, and December 31, 2016.	511	511
Subscription receivable	(38,400)	(38,400)
Additional paid-in capital	3,745,245	3,745,224
Accumulated deficit	(4,550,882)	(4,385,323)
Total stockholders' deficit	(832,591)	(667,032)
Total Liabilities and Stockholders' Deficit	1,017,042	1,179,652
Convertible Supervoting Preferred Stock
Stockholders' Deficit:
Preferred stock	10,000	10,000
Convertible Series B Preferred Stock
Stockholders' Deficit:
Preferred stock	935	956
Undesignated Preferred Stock
Stockholders' Deficit:
Preferred stock	$ 0	$ 0

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets - Parenthetical - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 1,048,004	$ 969,934
Convertible Notes Payable, Current, Debt discount	$ 18,641	$ 20,291
Preferred Stock, Par or Stated Value Per Share	$ 0.001
Preferred Stock, Shares Authorized	15,000,000
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	2,000,000,000	2,000,000,000
Common Stock, Shares, Issued	5,127,408	5,127,408
Common Stock, Shares, Outstanding	5,127,408	5,127,408
Convertible Supervoting Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
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
Convertible Series B Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	2,000,000	2,000,000
Preferred Stock, Shares Issued	934,947	956,447
Preferred Stock, Shares Outstanding	934,947	956,447
Undesignated Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	3,000,000	3,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue
Services, net of discounts	$ 661,131	$ 659,357	$ 2,022,866	$ 1,931,140
Product, net of discounts	184,893	173,150	550,807	557,622
Total revenue	846,024	832,507	2,573,673	2,488,762
Costs and expenses
Cost of services	358,911	339,114	1,121,107	1,090,196
Cost of product	104,235	95,884	314,405	308,780
Depreciation	23,775	29,003	78,067	82,773
General and administrative	348,480	380,748	1,202,320	1,029,226
Total costs and expenses	835,401	844,749	2,715,899	2,510,975
Income (Loss) from operations	10,623	(12,242)	(142,226)	(22,213)
Other Income (Expense)
Interest income	171	1,561	3,386	1,562
Interest expense	(22,677)	(26,611)	(56,836)	(110,426)
Interest income (expense), related parties (net)	6,720	(46,806)	19,942	(116,039)
Gain (loss) on derivative fair value adjustment	(33,576)	(67,170)	10,131	605
Loss on stock subscription receivable	0	0	0	(39,839)
Other income	25	0	37	12,265
Total other income (expense)	(49,337)	(139,026)	(23,340)	(251,872)
Loss before income taxes	(38,714)	(151,268)	(165,566)	(274,085)
Income taxes	0		0	0
Net loss	$ (38,714)	$ (151,268)	$ (165,566)	$ (274,085)
Loss per common share basic and diluted	$ (0.01)	$ (0.17)	$ (0.03)	$ (0.34)
Weighted-average shares used to compute earnings per share basic and diluted	5,127,408	886,917	5,127,408	809,268

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows from Operating Activities:
Net loss	$ (165,566)	$ (274,085)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	78,067	82,773
Amortization of debt issuance costs	28,147	81,370
Loss on stock subscription receivable	0	39,839
Gain on derivative liability fair value adjustment	(10,131)	(605)
Changes in operating assets and liabilities:
Accounts receivable	2,341	4,416
Inventory	13,987	(13,506)
Prepaid expenses	124,167	0
Other assets	(25,693)	0
Accounts payable and accrued expenses	75,814	(175,030)
Due to (from) related parties	73,353	247,376
Deferred rent	(6,683)	(8,527)
Deferred revenue	(14,728)	(16,137)
Net cash provided by (used in) operating activities	173,075	(32,116)
Cash Flows from Investing Activities:
Purchases of property and equipment	(2,144)	(90,530)
Payments on related party note receivable	(165,000)	(310,000)
Proceeds from related party note receivable	37,993	245,708
Net cash used in investing activities	(129,151)	(154,822)
Cash Flows from Financing Activities:
Payments made on notes payable	(398,877)	(339,896)
Payments made on convertible debt	0	(30,050)
Payments made on related party notes payable	0	(18,213)
Payments made on capital lease obligations	0	(10,038)
Proceeds from issuance of notes payable	256,060	526,495
Net cash provided by (used in) financing activities	(142,817)	128,298
Decrease in cash	(98,893)	(58,640)
Cash at beginning of period	347,284	150,459
Cash at end of period	248,391	91,819
Supplemental cash flow information:
Cash paid during the period for: Income Taxes	0	0
Cash paid during the period for: Interest	76,517	41,979
Non-cash investing and financing activities:
Non-cash debt discounts	26,180	0
Conversion of debt to common stock	0	2,384,931
Refinancing of debt	121,940	0
Return and cancellation of Preferred B shares	$ 21	$ 0

Note 1 - Basis of Financial Sta

Note 1 - Basis of Financial Statement Presentation	9 Months Ended
	Sep. 30, 2017
Notes
Note 1 - Basis of Financial Statement Presentation	Note 1 – Basis of Financial Statement Presentation Basis of Presentation The consolidated financial statements include the accounts of Green Endeavors, Inc. and its subsidiaries (“Green”, or “the Company”) after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly-owned by Green Endeavors, Inc. 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, 2016. 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 and nine months ended September 30, 2017, are not necessarily indicative of the results that may be expected for the 12 months ending December 31, 2017.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Notes
Note 2 - Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies 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. Cash and Cash Equivalents Investments with original maturities of three months or less at the time of purchase are considered cash equivalents. As of September 30, 2017 and December 31, 2016, 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. Management has determined that no reserve is required at September 30, 2017. Property and Equipment Property 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 3years Furniture and fixtures 3-10years Equipment 3-10years Vehicle 7years Signage 10years The following is a summary of Green’s property and equipment by major category as of September 30, 2017: Accumulated Cost Depreciation Net Computer equipment and related software $ 46,546 $ 41,977 $ 4,569 Leasehold improvements 732,693 574,967 157,726 Furniture and fixtures 27,201 26,311 890 Leased equipment 76,298 75,804 494 Equipment 285,828 262,731 23,097 Vehicle 48,193 48,193 - Signage 25,154 18,021 7,133 $ 1,241,913 $ 1,048,004 $ 193,909 The following is a summary of Green’s property and equipment by major category as of December 31, 2016: Accumulated Cost Depreciation Net Computer equipment and related software $ 44,401 $ 36,333 $ 8,068 Leasehold improvements 732,690 530,039 202,651 Furniture and fixtures 27,201 25,650 1,551 Leased equipment 76,298 69,321 6,977 Equipment 285,828 245,906 39,922 Vehicle 48,193 46,472 1,721 Signage 25,154 16,213 8,941 $ 1,239,765 $ 969,934 $ 269,831 During the nine months ended September 30, 2017 and 2016, Green recorded depreciation expense of $78,067 and $82,773, respectively. Derivative Liability The Company has convertible notes that could be considered derivatives or contain embedded features subject to derivative accounting. We have estimated the fair value of these embedded derivatives for convertible debentures using a multinomial lattice model. 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: Basic and Diluted Income (Loss) Per Common 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 nine months ended September 30, 2017, there were 1,017,195,275 potential common shares 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. Deferred Revenue Deferred revenue arises when customers pay for products and/or services in advance of receiving the product or service. 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 September 30, 2017 and December 31, 2016, deferred revenue was $71,495 and $86,223, 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 nine month period ended September 30, 2017 and 2016, advertising costs amounted to $71,235 and $69,639, respectively. 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, Sack lunch Productions, Inc. (“SAKL” or “the Parent Company”), and therefore does not file an income tax return. Its financial amounts are consolidated into the SAKL income tax returns. As of September 30, 2017 and December 31, 2016, a 100% valuation allowance has been placed against the deferred tax asset and therefore is not reflected on the balance sheets. 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 - Going Concern

Note 3 - Going Concern	9 Months Ended
	Sep. 30, 2017
Notes
Note 3 - Going Concern	Note 3 – 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 nine months ended September 30, 2017, Green had negative working capital of $1,008,708 and a net loss of $165,566, 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 4 - Inventory

Note 4 - Inventory	9 Months Ended
	Sep. 30, 2017
Notes
Note 4 - Inventory	Note 4 – 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 September 30, 2017 and December 31, 2016, inventory amounted to $138,803 and $152,790, respectively.

Note 5 - Derivative Liability

Note 5 - Derivative Liability	9 Months Ended
	Sep. 30, 2017
Notes
Note 5 - Derivative Liability	Note 5 – Derivative Liability The Company has convertible notes that could be considered derivatives or contain embedded features subject to derivative accounting. We have estimated the fair value of these embedded derivatives for convertible debentures using a multinomial lattice model. As of September 30, 2017 and December 31, 2016, the Company has a $98,166 and $108,297 derivative liability respectively, related to convertible notes payable. For the nine months ended September 30, 2017 and 2016 the Company recorded a gain (loss) of $10,131 and $605 from derivative liability fair value adjustments, respectively.

Note 6 - Fair Value Measurement

Note 6 - Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Notes
Note 6 - Fair Value Measurements	Note 6 – Fair Value Measurement Our financial assets and (liabilities) carried at fair value measured on a recurring basis as of September 30, 2017 and December 31, 2016, consisted of the following: Total fair Quoted prices Significant other Significant value at in active Observable unobservable September 30, markets Inputs inputs Description 2017 (Level 1) (Level 2) (Level 3) Derivative liability (1) $98,166 $ - $98,166 $ - Total fair Quoted prices Significant other Significant value at in active observable unobservable December 31, markets inputs inputs Description 2016 (Level 1) (Level 2) (Level 3) Derivative liability (1) $108,297 $ - $108,297 $ - (1) a multinomial lattice model

Note 7 - Related Party Transact

Note 7 - Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Notes
Note 7 - Related Party Transactions	Note 7 – Related Party Transactions As of September 30, 2017 and December 31, 2016, amounts due from related parties were $401,478 and $248,778, respectively. The balances represent notes and interest receivable from SAKL, the parent, and Lantern Fest Productions, Inc., an SAKL subsidiary. The SAKL note accrues interest at 18% per annum and matured on April 30, 2017. The Lantern Fest Productions note accrues interest at the rate of 20% per annum and matured and matures on May 31, 2018. As of September 30, 2017 and December 31, 2016, amounts due to related parties were $767,714 and $694,361, respectively. The balances, represent advances from SAKL and SAKL subsidiaries, and certain notes payable to SAKL, Richard Surber and a company affiliated with Richard Surber. These notes have maturity dates from April 2015 to November 2017. Richard Surber, a related party, is 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 approximately $4,000. Subsequent to September 30, 2017, 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 8 - Debt

Note 8 - Debt	9 Months Ended
	Sep. 30, 2017
Notes
Note 8 - Debt	Note 8 – Debt On July 27, 2017, the Company entered into a loan agreement with a bank in the amount of $378,000. The note is a merchant account financing arrangement with 365 day term wherein Landis repays the loan at the rate of 75% of the American Express credit card sales receipts that are collected each month. In addition to the merchant account receivables, collateral for the loan includes all receivables, financial instruments, equipment assets, inventories, intangibles, deposits, and other assets as applicable. The loan requires a prepaid interest charge that is 6% ($22,680) of the $378,000 loan amount. These financing costs are being amortized monthly to interest expense during the one year term of the loan. The total amount due at the inception date was $400,680. $121,940 of the proceeds of this loan were used to extinguish a note payable to the same lender that this note replaced.

Note 9 - Equity

Note 9 - Equity	9 Months Ended
	Sep. 30, 2017
Notes
Note 9 - Equity	Note 9 – Equity Preferred Stock Green is authorized to issue 15,000,000 shares of preferred stock (par value $0.001 per share). Green’s preferred stock may be divided into such series as may be established by the Board of Directors. As of September 30, 2017, 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 Super voting 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 Super voting Preferred Stock Each share of the Convertible Super voting Preferred Stock is convertible into 100 shares of Green’s Common stock and has the voting rights equal to 100 shares of common stock. As of September 30, 2017 and December 31, 2016, Green had 10,000,000 shares of Convertible Super voting Preferred stock issued and outstanding. Convertible Series B Preferred Stock Each share of Green’s Convertible Series B Preferred Stock (Series B) 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. As of September 30, 2017 and December 31, 2016, Green had 934,947 and 956,447 shares of Series B issued and outstanding respectively. During the nine months ended September 30, 2017 the company received and cancelled 21,500 shares of Series B Preferred Stock. Common Stock Green is authorized to issue 2,000,000,000 shares of common stock (par value $0.0001 per share). As of September 30, 2017 and December 31, 2016, Green had 5,127,408 shares of common stock issued and outstanding.

Note 10 - Litigation

Note 10 - Litigation	9 Months Ended
	Sep. 30, 2017
Notes
Note 10 - Litigation	TCA Global Credit Master Fund, L.P. vs Sack Lunch Productions, Green Endeavors, Inc., Landis Salons, Inc., Landis Salons II, Inc., Diversified Managements Services, Inc., Wasatch Capital Corporation, Downtown Development Corporation, WG Productions Company, Landis Experience Center, LLC, Redline Entertainment, Inc., Springbok Holdings, LLC, Color Me Rad, LLC, The Dirty Dash, LLC, Springbok Franchising LLC, and Springbok Management, LLC, Case CACE-17-011661 Division 12, in the Circuit Court of the 17th Judicial Circuit In and For Broward County, Florida. The suit seeks recovery for payments that were due in accordance with the terms and provisions of the Senior Secured Credit Facility Agreement effective between the parties as of October 31, 2015. On October 18, 2017 TCA and the Company entered into a settlement agreement to resolve the suit and dismiss the litigation. Additionally, in connection with the agreement, the maturity date of the note was extended to March 31, 2018.

Note 11 - Concentration of Risk

Note 11 - Concentration of Risk	9 Months Ended
	Sep. 30, 2017
Notes
Note 11 - Concentration of Risk	Note 11 – 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 nine months ended September 30, 2017 and 2016 accounted for approximately 99% 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 12 - Subsequent Events

Note 12 - Subsequent Events	9 Months Ended
	Sep. 30, 2017
Notes
Note 12 - Subsequent Events	Note 12 – Subsequent Events In accordance with ASC 855-10 Company management reviewed all material events through the date of this report. On October 11, 2017, the Company entered into a loan agreement with a bank in the amount of $102,000. The note is a financing arrangement with no stipulated interest rate. The implicit rate is 18%. Landis Salons Inc. will repay the loan with 6 monthly payments of $10,333.34 followed by 6 monthly payments of $9,333. On November 1, 2017 the Board of Directors approved the conversion of 2,000 shares of Series B Preferred Stock into 42,373 shares of common stock by Logan C. Fast a director of the Company. The shares were converted at $0.236 based on the conversion provisions of the Series B Preferred Stock. On November 1, 2017 the Board of Directors approved the conversion of 6,100 shares of Series B Preferred Stock into 129,238 shares of common stock by an unrelated third party. The shares were converted at $0.236 based on the conversion provisions of the Series B Preferred Stock. On November 1, 2017 the Board of Directors approved the conversion of 12,101 shares of Series B Preferred Stock into 256,380 shares of common stock by Richard Surber President and a director of the Company. The shares were converted at $0.236 based on the conversion provisions of the Series B Preferred Stock. On November 9, 2017 Logan C. Fast tendered his resignation an officer and director of the Corporation and its subsidiaries. The resignation was effective immediately. A report of this action has been filed as a Form 8-K on November 11, 2017, which includes a copy of his letter of resignation. Mr. Fast reported that he had no disagreement with the Corporation or its management.

Note 2 - Summary of Significa18

Note 2 - Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and December 31, 2016, 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. Management has determined that no reserve is required at September 30, 2017.
Property, Plant, and Equipment	Property and Equipment Property 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 3years Furniture and fixtures 3-10years Equipment 3-10years Vehicle 7years Signage 10years The following is a summary of Green’s property and equipment by major category as of September 30, 2017: Accumulated Cost Depreciation Net Computer equipment and related software $ 46,546 $ 41,977 $ 4,569 Leasehold improvements 732,693 574,967 157,726 Furniture and fixtures 27,201 26,311 890 Leased equipment 76,298 75,804 494 Equipment 285,828 262,731 23,097 Vehicle 48,193 48,193 - Signage 25,154 18,021 7,133 $ 1,241,913 $ 1,048,004 $ 193,909 The following is a summary of Green’s property and equipment by major category as of December 31, 2016: Accumulated Cost Depreciation Net Computer equipment and related software $ 44,401 $ 36,333 $ 8,068 Leasehold improvements 732,690 530,039 202,651 Furniture and fixtures 27,201 25,650 1,551 Leased equipment 76,298 69,321 6,977 Equipment 285,828 245,906 39,922 Vehicle 48,193 46,472 1,721 Signage 25,154 16,213 8,941 $ 1,239,765 $ 969,934 $ 269,831 During the nine months ended September 30, 2017 and 2016, Green recorded depreciation expense of $78,067 and $82,773, respectively.
Derivative Liability	Derivative Liability The Company has convertible notes that could be considered derivatives or contain embedded features subject to derivative accounting. We have estimated the fair value of these embedded derivatives for convertible debentures using a multinomial lattice model.
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:
Net Loss Per Share	Basic and Diluted Income (Loss) Per Common 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 nine months ended September 30, 2017, there were 1,017,195,275 potential common shares 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.
Deferred Revenue	Deferred Revenue Deferred revenue arises when customers pay for products and/or services in advance of receiving the product or service. 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 September 30, 2017 and December 31, 2016, deferred revenue was $71,495 and $86,223, 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 nine month period ended September 30, 2017 and 2016, advertising costs amounted to $71,235 and $69,639, respectively.
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, Sack lunch Productions, Inc. (“SAKL” or “the Parent Company”), and therefore does not file an income tax return. Its financial amounts are consolidated into the SAKL income tax returns. As of September 30, 2017 and December 31, 2016, a 100% valuation allowance has been placed against the deferred tax asset and therefore is not reflected on the balance sheets.
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 2 - Summary of Significa19

Note 2 - Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Property, Plant and Equipment	The following is a summary of Green’s property and equipment by major category as of September 30, 2017: Accumulated Cost Depreciation Net Computer equipment and related software $ 46,546 $ 41,977 $ 4,569 Leasehold improvements 732,693 574,967 157,726 Furniture and fixtures 27,201 26,311 890 Leased equipment 76,298 75,804 494 Equipment 285,828 262,731 23,097 Vehicle 48,193 48,193 - Signage 25,154 18,021 7,133 $ 1,241,913 $ 1,048,004 $ 193,909 The following is a summary of Green’s property and equipment by major category as of December 31, 2016: Accumulated Cost Depreciation Net Computer equipment and related software $ 44,401 $ 36,333 $ 8,068 Leasehold improvements 732,690 530,039 202,651 Furniture and fixtures 27,201 25,650 1,551 Leased equipment 76,298 69,321 6,977 Equipment 285,828 245,906 39,922 Vehicle 48,193 46,472 1,721 Signage 25,154 16,213 8,941 $ 1,239,765 $ 969,934 $ 269,831

Note 6 - Fair Value Measureme20

Note 6 - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and December 31, 2016, consisted of the following: Total fair Quoted prices Significant other Significant value at in active Observable unobservable September 30, markets Inputs inputs Description 2017 (Level 1) (Level 2) (Level 3) Derivative liability (1) $98,166 $ - $98,166 $ - Total fair Quoted prices Significant other Significant value at in active observable unobservable December 31, markets inputs inputs Description 2016 (Level 1) (Level 2) (Level 3) Derivative liability (1) $108,297 $ - $108,297 $ -

Note 2 - Summary of Significa21

Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Details
Cash Equivalents, at Carrying Value	$ 0	$ 0

Note 2 - Summary of Significa22

Note 2 - Summary of Significant Accounting Policies: Property, Plant, and Equipment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Depreciation	$ 23,775	$ 29,003	$ 78,067	$ 82,773
Leasehold Improvements
Property, Plant and Equipment, Estimated Useful Lives			Shorter of the lease term or the estimated useful life
Computer Equipment and Related Software
Property, Plant and Equipment, Useful Life			3 years
Furniture and Fixtures | Minimum
Property, Plant and Equipment, Useful Life			3 years
Furniture and Fixtures | Maximum
Property, Plant and Equipment, Useful Life			10 years
Equipment | Minimum
Property, Plant and Equipment, Useful Life			3 years
Equipment | Maximum
Property, Plant and Equipment, Useful Life			10 years
Vehicles
Property, Plant and Equipment, Useful Life			7 years
Signage
Property, Plant and Equipment, Useful Life			10 years

Note 2 - Summary of Significa23

Note 2 - Summary of Significant Accounting Policies: Property, Plant, and Equipment: Schedule of Property, Plant and Equipment (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment, Gross	$ 1,241,913	$ 1,239,765
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	1,048,004	969,934
Net	193,909	269,831
Computer Equipment and Related Software
Property, Plant and Equipment, Gross	46,546	44,401
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	41,977	36,333
Net	4,569	8,068
Leasehold Improvements
Property, Plant and Equipment, Gross	732,693	732,690
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	574,967	530,039
Net	157,726	202,651
Furniture and Fixtures
Property, Plant and Equipment, Gross	27,201	27,201
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	26,311	25,650
Net	890	1,551
Leased Equipment
Property, Plant and Equipment, Gross	76,298	76,298
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	75,804	69,321
Net	494	6,977
Equipment
Property, Plant and Equipment, Gross	285,828	285,828
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	262,731	245,906
Net	23,097	39,922
Vehicles
Property, Plant and Equipment, Gross	48,193	48,193
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	48,193	46,472
Net	0	1,721
Signage
Property, Plant and Equipment, Gross	25,154	25,154
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	18,021	16,213
Net	$ 7,133	$ 8,941

Note 2 - Summary of Significa24

Note 2 - Summary of Significant Accounting Policies: Net Loss Per Share (Details)	9 Months Ended
	Sep. 30, 2017shares
Details
Antidilutive Securities, Excluded from Earnings Per Share	1,017,195,275

Note 2 - Summary of Significa25

Note 2 - Summary of Significant Accounting Policies: Deferred Revenue (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Details
Deferred revenue	$ 71,495	$ 86,223

Note 2 - Summary of Significa26

Note 2 - Summary of Significant Accounting Policies: Advertising (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Details
Advertising Costs	$ 71,235	$ 69,639

Note 3 - Going Concern (Details

Note 3 - Going Concern (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Details
Working Capital	$ (1,008,708)		$ (1,008,708)
Net loss	$ 38,714	$ 151,268	$ 165,566	$ 274,085

Note 4 - Inventory (Details)

Note 4 - Inventory (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Details
Inventory	$ 138,803	$ 152,790

Note 5 - Derivative Liability (

Note 5 - Derivative Liability (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Details
Fair Value Measurements, Valuation Techniques			a multinomial lattice model
Derivative liability	$ 98,166		$ 98,166		$ 108,297
Gain (loss) on derivative fair value adjustment	$ (33,576)	$ (67,170)	$ 10,131	$ 605

Note 6 - Fair Value Measureme30

Note 6 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Derivative liability	$ 98,166	$ 108,297
Fair Value, Inputs, Level 1
Derivative liability	0	0
Fair Value, Inputs, Level 2
Derivative liability	98,166	108,297
Fair Value, Inputs, Level 3
Derivative liability	$ 0	$ 0

Note 7 - Related Party Transa31

Note 7 - Related Party Transactions (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Notes receivable, related party	$ 401,478	$ 248,778
Due to related parties	706,155	632,802
SAKL
Notes receivable, related party	401,478	248,778
Due to related parties	$ 767,714	$ 694,361
SAKL | Note receivable
Debt Instrument, Interest Rate, Stated Percentage	18.00%
Debt Instrument, Maturity Date	Apr. 30, 2017
The Lantern Fest Productions, Inc | Note receivable
Debt Instrument, Interest Rate, Stated Percentage	20.00%
Debt Instrument, Maturity Date	May 31, 2018
Chief Executive Officer
Line of Credit, Current	$ 4,000
Line of Credit Facility, Description	The total amount of these credit obligations could exceed the amount of $300,000 from time to time.

Note 8 - Debt (Details)

Note 8 - Debt (Details)	Sep. 30, 2017USD ($)
Details
Debt Instrument, Face Amount	$ 378,000
Debt Instrument, Interest Rate, Effective Percentage	6.00%
Debt Instrument, Unamortized Discount	$ 22,680
Long-term Debt, Gross	$ 400,680

Note 9 - Equity (Details)

Note 9 - Equity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Preferred Stock, Shares Authorized	15,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001
Common Stock, Shares Authorized	2,000,000,000	2,000,000,000
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares, Outstanding	5,127,408	5,127,408
Convertible Series B Preferred Stock
Preferred Stock, Shares Authorized	2,000,000
Preferred Stock, Shares Issued	934,947	956,447
Preferred Stock, Shares Outstanding	934,947	956,447
Convertible Preferred Stock, Terms of Conversion	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.
Preferred stock cancelled	21,500
Convertible Supervoting Preferred Stock
Preferred Stock, Shares Authorized	10,000,000
Convertible Preferred Stock, Shares Issued upon Conversion	100
Preferred Stock, Shares Issued	10,000,000
Preferred Stock, Shares Outstanding	10,000,000

Note 11 - Concentration of Ri34

Note 11 - Concentration of Risk (Details)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Geographic Concentration Risk
Concentration Risk, Percentage	100.00%
Supplier Concentration Risk
Concentration Risk, Percentage	99.00%	99.00%

Note 12 - Subsequent Events (De

Note 12 - Subsequent Events (Details) - USD ($)	Nov. 01, 2017	Oct. 11, 2017	Nov. 02, 2017	Sep. 30, 2017
Debt Instrument, Face Amount				$ 378,000
Debt Instrument, Interest Rate, Effective Percentage				6.00%
Subsequent Event
Debt Instrument, Face Amount		$ 102,000
Debt Instrument, Interest Rate, Effective Percentage		18.00%
Subsequent Event | Convertible Series B Preferred Stock | A director
Conversion of Stock, Shares Converted	2,000
Debt Instrument, Convertible, Conversion Price			$ 0.236
Subsequent Event | Convertible Series B Preferred Stock | An unrelated third party
Conversion of Stock, Shares Converted	6,100
Debt Instrument, Convertible, Conversion Price			0.236
Subsequent Event | Convertible Series B Preferred Stock | Chief Executive Officer
Conversion of Stock, Shares Converted	12,101
Debt Instrument, Convertible, Conversion Price			$ 0.236
Subsequent Event | Common Stock | A director
Debt Conversion, Converted Instrument, Shares Issued	42,373
Subsequent Event | Common Stock | An unrelated third party
Debt Conversion, Converted Instrument, Shares Issued	129,238
Subsequent Event | Common Stock | Chief Executive Officer
Debt Conversion, Converted Instrument, Shares Issued	256,380
Subsequent Event | Series 1
Debt Instrument, Periodic Payment		$ 10,333.34
Subsequent Event | Series 2
Debt Instrument, Periodic Payment		$ 9,333