11 GOOD ENERGY INC

CIK:0001408597|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (USD $)	3 Months Ended		9 Months Ended		64 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012
Income Statement [Abstract]
Sales	$ 55,314	$ 71,853	$ 171,862	$ 169,366	$ 879,627
Cost of sales	55,870	129,523	318,109	398,031	1,756,363
Gross loss	(556)	(57,670)	(146,247)	(228,665)	(876,736)
OPERATING EXPENSES:
General, selling and administrative expenses	312,891	377,921	2,055,531	3,962,031	17,634,554
Research and development		19,708		143,421	1,334,070
Impairment of goodwill					639,504
Depreciation and amortization	21,180	27,047	107,386	85,418	454,832
Total operating expenses	334,071	424,676	2,162,917	4,190,870	20,062,960
LOSS FROM OPERATIONS	(334,627)	(482,346)	(2,309,164)	(4,419,535)	(20,939,696)
Other income/(expense):
Interest income					55,384
Interest expense	(23,438)	(345,758)	(250,709)	(354,484)	(4,577,901)
Realized (loss) gain on sale of securities				(213,083)	(84,277)
Gain on sale of property, plant and equipment			25,748		25,100
Total other (expense)	(23,438)	(345,758)	(224,961)	(567,567)	(4,581,694)
Loss before provision for income taxes	(358,065)	(828,104)	(2,534,125)	(4,987,102)	(25,521,390)
Provision for income taxes
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	(358,065)	(828,104)	(2,534,125)	(4,987,102)	(25,521,390)
Net loss per common share basic and fully diluted	$ (0.02)	$ (0.04)	$ (0.13)	$ (0.25)	$ (1.49)
Weighted average number of shares outstanding basic and fully diluted	18,496,735	19,901,238	19,418,493	19,878,656	17,107,133
Comprehensive loss:
Net loss	(358,065)	(828,104)	(2,534,125)	(4,987,102)	(25,521,390)
Unrealized (loss) gain on securities available for sale	(530)	(260)	(680)	197,901	(89,440)
Comprehensive loss	$ (358,595)	$ (828,364)	$ (2,534,805)	$ (4,789,201)	$ (25,610,830)

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended		64 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012
Statement of Cash Flows [Abstract]
Net loss	$ (2,534,125)	$ (4,987,102)	$ (25,521,390)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of intangible assets	303,498	285,342	1,222,729
Amortization of debt discount	175,139	168,154	3,785,687
Equity compensation of services by a related party			2,024,840
Equity compensation of services to consultant	30,000		89,000
Reserve for due from shareholder	108,519		108,519
Fair value of warrants issued in conjunction with related party debt	557,270	171,185	696,415
Fair value of stock options and warrants issued for services	696,117	1,944,511	2,509,312
Expenses paid by related party on behalf of the Company in exchange for notes payable	34,000		34,000
Impairment of goodwill			639,504
Gain on sale of property and equipment	(25,748)		(25,100)
Realized loss on sale of securities available for sale		213,083	84,277
Changes in operating assets and liabilities:
Inventory	15,124	196,226	(282,062)
Accounts receivable	19,363	26,633	(24,543)
Other current assets	18,107	4,584	150,439
Accounts payable and accrued liabilities	336,855	583,758	1,739,809
Net cash used in operating activities	(265,881)	(1,393,626)	(12,768,564)
Cash flows from investing activities:
Acquisition, net of cash acquired			(588,952)
Proceeds from sale of property and equipment	40,755		63,455
Purchase of property, plant and equipment			(3,039,723)
Payment of investment in KAI Bioenergy		(312,000)
Payments for acquisition of patent		(36,307)	(79,874)
Proceeds from sale of securities available for sale		560,768	1,108,515
Purchase of securities available for sale			(1,282,492)
Net cash provided by (used in) investing activities	40,755	212,461	(3,819,071)
Cash flows from financing activities:
Proceeds from sale of shares to founders			2,070
Due from shareholder/related party		(55,000)	(895,663)
(Repayment of) proceeds from related party advance	12,229	139,580	67,427
Proceeds from common stock subscription and sale of common stock	106,000	245,000	10,854,069
Proceeds from issuance of convertible notes	100,000	550,000	8,689,323
Proceeds from related party note payable		286,000	331,000
Purchase of treasury stock			(647,500)
Payments of related party note payable			(12,771)
Payments of notes payable			(84,322)
Payments of convertible notes			(1,710,000)
Net cash provided by financing activities	218,229	1,165,580	16,593,633
Net increase (decrease) in cash and cash equivalents	(6,897)	(15,585)	5,998
Cash and cash equivalents at beginning of period	12,895	29,879
Cash and cash equivalents at end of period	5,998	14,294	5,998
Income taxes paid
Interest paid
Common stock issued to acquire 11 Good's Energy, LTD			429
Common stock issuable for payment of accounts payable	49,767		49,767
Common stock issued in exchange for convertible note and accrued interest			20,970
Common stock subscribed for conversion of convertible notes			6,498,709
Treasury stock received in exchange for related party note receivable and accrued interest			787,144
Beneficial conversion feature and value of warrants in conjunction with debt	$ 175,139		$ 3,785,687

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash	$ 5,998	$ 12,895
Inventory	308,298	323,422
Accounts receivable, net	24,543	43,906
Available for sale securities	260	940
Other current assets	7,571	25,678
Total current assets	346,670	406,841
Property, plant and equipment, net	1,908,835	2,167,434
Other assets:
Patents	19,968	79,874
Deposits	2,163	2,163
Total other assets	22,131	82,037
Total assets	2,277,636	2,656,312
Current liabilities:
Accounts payable and accrued liabilities	1,650,010	1,362,922
Advances, related party	99,656	67,427
Notes payable, related party	320,000	306,000
Convertible notes payable, net of deferred debt discount of $0 and $75,139,respectively	650,000	474,861
Total current liabilities	2,719,666	2,211,210
Commitments and contingencies
Stockholders' equity:
Series A Preferred stock, $0.0001 par value; 11,000,000 shares authorized, issued and outstanding at September 30, 2012 and December 31, 2011	1,100	1,100
Common stock, $0.0001 par value; 65,000,000 shares authorized; 20,993,562 and 20,856,562 shares issued as of September 30, 2012 and December 31, 2011, respectively; 18,038,240 and 19,901,240 shares outstanding as of September 30, 2012 and December 31, 2011, respectively	2,100	2,086
Additional paid in capital	26,613,533	24,853,960
Common stock subscription	49,767	270,000
Due from shareholder		(108,519)
Deficit accumulated during development stage	(25,521,390)	(22,987,265)
Accumulated other comprehensive loss	(89,440)	(88,760)
Treasury stock, 2,955,322 and 955,322 shares as of September 30, 2012 and December 31, 2011	(1,497,700)	(1,497,500)
Total stockholders' (deficit) equity	(442,030)	445,102
Total liabilities and stockholders' (deficit) equity	$ 2,277,636	$ 2,656,312