Attached files

file filename
EX-10.31 - EXHIBIT 10.31 - GREEN EQUITY HOLDINGS, INC.exhibit1031.htm
EX-10.26 - EXHIBIT 10.26 - GREEN EQUITY HOLDINGS, INC.exhibit1026.htm
EX-10.24 - EXHIBIT 10.24 - GREEN EQUITY HOLDINGS, INC.exhibit1024.htm
EX-10.33 - EXHIBIT 10.33 - GREEN EQUITY HOLDINGS, INC.exhibit1033.htm
EX-10.30 - EXHIBIT 10.30 - GREEN EQUITY HOLDINGS, INC.exhibit1030.htm
EX-10.28 - EXHIBIT 10.28 - GREEN EQUITY HOLDINGS, INC.exhibit1028.htm
EX-10.36 - EXHIBIT 10.36 - GREEN EQUITY HOLDINGS, INC.exhibit1036.htm
EX-10.35 - EXHIBIT 10.35 - GREEN EQUITY HOLDINGS, INC.exhibit1035.htm
EX-10.32 - EXHIBIT 10.32 - GREEN EQUITY HOLDINGS, INC.exhibit1032.htm
EX-10.25 - EXHIBIT 10.25 - GREEN EQUITY HOLDINGS, INC.exhibit1025.htm
EX-10.29 - EXHIBIT 10.29 - GREEN EQUITY HOLDINGS, INC.exhibit1029.htm
EX-10.27 - EXHIBIT 10.27 - GREEN EQUITY HOLDINGS, INC.exhibit1027.htm
EX-10.34 - EXHIBIT 10.34 - GREEN EQUITY HOLDINGS, INC.exhibit1034.htm
EX-31 - EXHIBIT 31 - GREEN EQUITY HOLDINGS, INC.exhibit31.htm
EX-32 - EXHIBIT 32 - GREEN EQUITY HOLDINGS, INC.exhibit32.htm
EX-10.40 - EXHIBIT 10.40 - GREEN EQUITY HOLDINGS, INC.exhibit1040.htm
EX-10.41 - EXHIBIT 10.41 - GREEN EQUITY HOLDINGS, INC.exhibit1041.htm
EX-10.39 - EXHIBIT 10.39 - GREEN EQUITY HOLDINGS, INC.exhibit1039.htm
EX-10.37 - EXHIBIT 10.37 - GREEN EQUITY HOLDINGS, INC.exhibit1037.htm
EX-10.38 - EXHIBIT 10.38 - GREEN EQUITY HOLDINGS, INC.exhibit1038.htm
EX-10.42 - EXHIBIT 10.42 - GREEN EQUITY HOLDINGS, INC.exhibit1042.htm


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q



 

(MARK ONE)

 

x     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2010


o     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

 

For the transition period from ______ to _______

 

Commission File Number 0-52396

 

Green Equity Holdings, Inc.

(Exact name of registrant as specified in its charter)




Nevada

20-2889663

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)


1015 W. Newport Center Drive, Suite 105 Deerfield Beach, FL 33442

(Address of principal executive offices)


(954)573-1709

Registrant's telephone number


(Former name, former address and former fiscal year, if changed since last report)


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    x    No   o


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (of for such shorter period that the registrant was required to submit and post such files). Yes   x    No o


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. 

 

Large accelerated filer   o Accelerated filer   o Non-accelerated filer   o     Small reporting company   x


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes   o No   x


As of September 30, 2010, there were 58,497,960 shares of the registrant's common stock outstanding.

 

 

 

 

                

             

 

[greenequityholdings10q001.jpg]

GREEN EQUITY HOLDINGS, INC.

INDEX

 

 

PART I – FINANCIAL INFORMATION

 

F-1


Item 1.  Condensed Financial Statements

F-1


Condensed Balance Sheets at September 30, 2010 (unaudited) and March 31, 2010

F-1


Unaudited Condensed Statements of Operations for the six months ended September 30, 2010 and September 30, 2009

F-2


Unaudited Condensed Statements of Cash Flows for the six months ended September 30, 2010 and September 30, 2009

F-3


Unaudited Notes to Condensed Financial Statements

F-4


Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

3


Item 3.  Controls and Procedures

5

PART II – OTHER INFORMATION

 

6


Item 1.  Risk Factors

6


Item 2. Other Information

6


Item 3. Exhibits

6

 

 

 

2

                

             

 

PART I

FINANCIAL INFORMATION

 

ITEM 1.  CONDENSED FINANCIAL STATEMENTS.

 


 

GREEN EQUITY HOLDINGS, INC.

CONDENSED BALANCE SHEETS  

 

 

September 30,

 

 

March 31,

 

 

 

2010

 

 

2010

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Cash and Cash Equivalents

 

            $

                209

 

$

 

Accounts receivable

 

 

                  481

 

 

 

Notes receivable-related party

 

 

              1,245

 

 

            1,245

 

Prepaid expenses

 

 

              5,000

 

 

            5,000

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

             6,935

 

 

             6,245

 

 

 

 

 

 

 

 

Property & Equipment, net

 

 

             62,982

 

 

          90,860

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

            $

            69,917

 

          97,105

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

         474,423

 

 $

        683,696

 

Notes payable - related party

 

 

         391,106

 

 

       391,106

 

Notes Payable Other

 

 

         257,349

 

 

       210,941

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

       1,122,878

 

 

      1,285,743

 

 

 

 

 

 

 

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 50,000,000 shares authorized; none issued and outstanding

 

 

                  -

 

 

                    -

 

Common stock, $0.0001 par value, 500,000,000 shares authorized; 58,497,960 and 27,483,210 shares issued and outstanding at September 30, 2010; and March 31, 2010, respectively

 

 

         56,675

 

 

27,483

 

Additional paid-in capital

 

 

     8,545,572

 

 

     8,334,664

 

Accumulated deficit

 

 

     (9,655,208)

 

 

(9,550,785)

 

 

 

 

 

 

 

 

TOTAL STOCKHOLDERS' EQUITY (DEFICIT)

 

 

     (1,052,961)

 

 

(1,188,638)

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

$

          69,917

 

 $

           97,105

 

 

 

See accompanying notes to the condensed unaudited financial statements.



 

F-1

                

             

GREEN EQUITY HOLDINGS, INC.                          

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)                       

 

 

For the Three Months Ended

 

 

For the Six Months Ended 

 

 

September 30,

 

 

September 30, 

 

 

2010

 

 

2009

 

 

2010

 

 

2009

REVENUES

 

$

-

 

 

$

-

 

 

$

            -

 

 

$

            -

Cost of sales

 

 

-

 

 

 

 -

 

 

 

           -

 

 

 

            -

GROSS MARGIN

 

 

-

 

 

 

-

 

 

       

          -

 

 

 

            -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

37,413

 

 

 

36,623

 

 

 

66,523

 

 

 

72,679

Depreciation and amortization

 

 

13,073

 

 

 

13,073

 

 

 

28,049

 

 

 

26,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

 

50,486

 

 

 

49,696

 

 

 

94,572

 

 

 

98,825

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS FROM OPERATIONS

 

 

(50,486

)

 

 

(49,696

)

 

 

(94,572

)

 

 

(98,825)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 5,160

 

 

 

19,556

 

 

 

10,320

 

 

 

             19,556

Other income

 

 

-

 

 

 

-

 

 

 

  469

 

 

 

              2,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL OTHER EXPENSES

 

 

(5,160

)

 

 

(19,556

)

 

 

(9,851

)

 

(17,056)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

$

(55,646

)

 

$

(69,252

)

 

$

(104,423

)

 

$

(115,881)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANIDING-BASIC AND DILUTED

 

 

   55,967,960

 

 

 

23,533,100

 

 

 

     54,662,437

 

 

 

22,807,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS PER COMMON SHARES-BASIC AND DILUTED

 

$

(0.001

)

 

$

(0.003

)

 

$

(0.002

)

 

$

(0.005)

 

See accompanying notes to the condensed unaudited financial statements.

 

 

 

F-2

                

             

GREEN EQUITY HOLDINGS, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

For the Six Months Ended

 

 

September 30,

 

 

2010

 

 

2009

CASH FLOW FROM OPERATING ACTIVITIES:

 

 

 

 

 

Net loss

 

$

(104,423)

 

 

$

(115,881)

Adjustment to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

        28,049

 

 

 

       26,146

       Common stock issued for services                                    

 

 

                                                      -

 

 

 

-

Changes in assets and liabilities:

 

 

 

 

 

 

 

       Accounts receivable

 

 

      (481)

 

 

 

        (2,500)

       Accounts payable and accrued expenses

 

 

                                           (11,050)

 

 

 

                                        10,612

 

 

 

 

 

 

 

 

       Sales tax payable

 

 

                                                 ( 38)

 

 

 

-

 

 

 

 

 

 

 

 

    Net Cash Used in Operating Activities

 

 

(77,623)

 

 

 

(62,067)

CASH FLOW FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

  Equipment

 

$

(171)

 

 

$

-

 

 

 

                              

 

 

 

 

Net Cash Used in Investing Activities

 

$

                              (171)

 

 

 

  -

 

 

 

 

 

 

 

 

CASH FLOW FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

  Repayment of notes payable Other

 

 

 (10,000)

 

 

 

63,254

  Proceeds from notes payable Other

 

 

                                               1,500

 

 

 

 

  Proceeds from notes payable FCI Corp

 

 

30,253

 

 

 

-

  Proceeds from sale of common stock

 

 

55,100

 

 

 

100

         Paid-in-Capital

 

 

 -

 

 

 

-

 

 

 

 

 

 

 

 

     Net Cash Used from Financing Activities                                                          

 

 

                  76,853

 

 

 

63,354

 

 

 

 

 

 

 

 

Net Increase in Cash Flow

 

                 

209

 

 

 

1,287

Cash and cash equivalents at beginning of period

 

 

            -

 

 

 

              192

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

        209

 

 

$

1,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes payable to Empire, LP in exchange to GEO Command

 

 

 

 

 

 

 

accounts payable

 

$

                  208,500

 

 

$

                 -

Conversion of note payable - related party to equity

 

$

                  4,000

 

 

$

                 -

Common stock issued upon conversion of Notes payable to

 

 

 

 

 

 

 

Empire LP

 

$

                125,000

 

 

$

           -

Common stock issued upon conversion of notes payable to

OTC Capital Partners, LLC

 

$

                60,000

 

 

$

           -


 

See accompanying notes to the condensed unaudited financial statements.

 

 

 

F-3

                

             

GREEN EQUITY HOLDINGS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

For the Six Months Ended September 30, 2010

 

NOTE 1 ORGANIZATION AND DESCRIPTION OF BUSINESS


CX2 Technologies, Inc. (the Company" or "CX2") was incorporated on May 21, 2002 as Brook-view Institute, Inc., under the laws of the State of Nevada.  On November 16, 2005, the Company changed its name to CX2 Technologies, Inc.  On December 6, 2005, the Company filed articles of correction to change the name to CX2 Technologies, Inc.  On May 10, 2006, the Company commenced its business operations in the State of Florida.  Effective August 16 th, 2010, the Company changed its name to Green Equity Holdings, Inc. (the Name Change).

 

On June 30, 2010, Lester Hahn, sole director, President and CEO of CX2 Technologies, Inc. (the Company) resigned from all positions held with the Company including resignation as a member of the Board service.  There was no disagreement as defined in 17 CFR 240.3b-7- between the Registrant and Mr. Hahns resignation from the Board of Directors.  

Also effective June 30, 2010, the Company appointed Raimundo Dias as sole Director, President and CEO to replace Mr. Hahn.  Mr. Dias will serve as a director until his successor has been elected at the next annual meeting of the Registrant's shareholders or until his earlier resignation, removal, or death.

Concurrently with the Name Change, the Company changed its focus to become a holdings company that invests primarily in high growth businesses offering novel solutions to global energy, resources and environmental challenges. Pursuant to the new strategy, the company entered into a letter of intent, effective September 2010, to enter into a joint venture with Strategic Energy Supplies Corporation (SESC) to build and operate not less than three (3) grease trap plants within the next twelve months.

 

Prior to the name change, the company was engaged in the development, operation and management of 220 MHz digital wireless data communications services.  As disclosed in the Company's Form 10-K for the fiscal year ended March 31, 2010, "the Company utilized intellectual property licensed from Biz-com pursuant to an agreement with Biz-com. Biz-com subsequently forfeited their IP to Stillwater Asset Backed Funds. Thus, CX2 no longer believes it has any right to use this IP, and management was seeking to negotiate a license with Stillwater Asset Backed Funds to enable the Company to continue to have access to this IP.  There can be no assurance that the Company will be successful in obtaining such a license.  CX2 management and consultants attempted to, but were not successful in reconciling with the representatives of Stillwater Asset Backed Funds for the rights to use this intellectual property underlying the technology which was ultimately forfeited by Biz-com.

 

The Company is not currently seeking to acquire 220 MHz licenses and related equipment from other third parties.

 

NOTE 2 INTERIM FINANCIAL STATEMENTS


The accompanying unaudited condensed financial statements of Green Equity Holdings, Inc. (the "Company") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC). Certain information and footnote disclosures, normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such SEC rules and regulations. Nevertheless, the Company believes that the disclosures are adequate to make the information presented not misleading. These interim condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's March 31, 2010 Annual Report as filed on Form 10K. In the opinion of management, all adjustments, including normal recurring adjustments necessary to present fairly the financial position of the Company with respect to the interim financial statements and the results of its operations for the interim period ended September 30, 2010, have been included. The results of operations for interim periods are not necessarily indicative of the results for a full year.


NOTE 3 GOING CONCERN


The accompanying condensed financial statements have been prepared assuming that the Company will continue as a going concern.  The Company had a net loss of $104,423 and a negative cash flow from operations of $77,623 during the six months ended September 30, 2010, along with a working capital deficiency of $1,115,943 and a stockholder's deficiency of $1,052,961.  These conditions raised substantial doubt about the Company's ability to continue as a going concern.   The Company had recurring losses from its operations that began in 2002 and the annual revenues were not sufficient enough to cover the Company's incurred expenses and its obligations as they became due.  

  

 

 

F-4

                

             

GREEN EQUITY HOLDINGS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

For the Six Months Ended September 30, 2010

 

NOTE 4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


The following summarizes significant accounting policies to assist the reader in understanding and evaluating the condensed financial statements.  These policies are in conformity with accounting principles generally accepted in the United States of America and have been applied consistently in all material respects.


Basis of Accounting


The condensed financial statements are prepared using the accrual basis of accounting where revenues and expenses are recognized in the period in which they were incurred. 


Revenue Recognition

 

The Company followed the provisions of Topic ASC 605 Revenue Recognition in Financial Statements, formerly Staff Accounting Bulletin (SAB) No. 104 Revenue Recognition.  Revenue from users of network services were recognized at the time the services were provided.  For example, revenue from the sale of radios and other related equipment were recognized at the date of delivery to the customer and when collection was reasonably assured.  Revenues from consulting services were recognized at the time services were provided.


Estimates


The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.


Fair Value of Financial Instruments


ASC topic 825, Disclosures about Fair Value of Financial Instruments, requires disclosures of information regarding the fair value of certain financial instruments for which it is practicable to estimate the value.  For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying values of the Company's financial instruments which consist of accounts receivable, notes receivable, accounts payable, and notes payable approximate fair values due to the short-term maturities of such instruments.


Net Loss Per Share


The Company computed basic and diluted loss per share amounts for September 30, 2010 pursuant to the ASC topic 260, Earnings per Share.  Basic EPS is calculated as net income or loss attributable to common stockholders divided by the weighted average number of common shares outstanding during the period.  Diluted EPS is calculated using the "if converted" method for common stock equivalents.  As of September 30, 2010 there were no common stock equivalents outstanding.

 

 

 

F-5

                

             

GREEN EQUITY HOLDINGS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

For the Six Months Ended September 30, 2010


Recent Accounting Pronouncements


Recent accounting pronouncements that the Company has adopted or that will be required to adopt in the future are summarized below.


Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles


In August 2010, the FASB issued Accounting Standard Updates No. 2010-21 (ASU No. 2010-21) Accounting for Technical Amendments to Various SEC Rules and Schedules and No. 2010-22 (ASU No. 2010-22) Accounting for Various Topics - Technical Corrections to SEC Paragraphs.  ASU No 2010-21 amends various SEC paragraphs pursuant to the issuance of Release no. 33-9026: Technical Amendments to Rules, Forms, Schedules and Codification of Financial Reporting Policies.  ASU No. 2010-22 amends various SEC paragraphs based on external comments received and the issuance of SAB 112, which amends or rescinds portions of certain SAB topics.  Both ASU No. 2010-21 and ASU No. 2010-22 are effective upon issuance.  The amendments in ASU No. 2010-21 and No. 2010-22 will not have a material impact on the Company's financial statements.


A variety of proposed or otherwise potential accounting standards are currently under study by standard-setting organizations and various regulatory agencies. Because of the tentative and preliminary nature of these proposed standards, management has not determined whether implementation of such proposed standards would be material to the Company's financial statements.

 

 

F-6

                

             

GREEN EQUITY HOLDINGS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

For the Six Months Ended September 30, 2010

 

NOTE 5 NOTES PAYABLE


Debt due as of September 30, 2010 consists of the following: 

 

Unsecured note payable to Biz.com.  This note is interest bearing and has no payment terms.

 

$     

             391,106  

Notes payable to Empire, LP This note is non-interest bearing and due on demand.

      188,185

Notes payable OTC Capital Partners, LLC  is unsecured, non-interest bearing and due on demand.






       37,411  

Notes payable FCI Corp. This note is non-interest bearing and due on demand.






       30,253  

Notes payable other is unsecured, non-interest bearing and due on demand.                                          

        1,500

 

648,455

Less current portion of long term notes payable

 

 

(648,455)

 

 

 

 

Total

 

$

-

 

 

 

            Effective September 21, 2010, the Company entered into a debt-conversion agreement with Empire LP, an accredited investment firm.  The Company and Empire LP negotiated the assignment of GEO Commands accounts payable balance in

            the amount of $208,500; and the notes payable balance in the amount of $104,685 for value to Empire LP in lieu of an undisclosed amount in consideration for a Consulting fee paid to GEO Command in the amount of $20,935.


Effective September 21, 2010, the Company entered into a debt-conversion agreement with OTC Capital Partners, LLC an accredited investment firm.  The Company and OTC Capital Partners, LLC negotiated the assignment and discount of Michael Rands notes payable balance in the amount of $97,419 for value to OTC Capital Partners, LLC.  OTC Capital Partners, LLC agreed to purchase them in three tranches:  On June 15, 2010 debt in the amount of $26,334 converted into 9,100,000 shares issued between September 13 and October 19, 2010; on August 15, 2010 debt in the amount of $31,333; and on October 15, 2010 debt in the amount of $31,333 will also be converted into an undisclosed amount of Company shares.


NOTE 6 STOCKHOLDERS' EQUITY


Common Stock


As of July 1, 2010, the Company has increased its authorization to issue common stock in the amount of 500,000,000 shares; having a par value of $.0001 per share.  There were 58,497,960 and 27,483,210 shares issued and outstanding as of September 30, 2010, and March 31, 2010, respectively.  


Preferred Stock


As of July 1, 2010, the Company has increased its authorization to issue preferred shares Series A and B in the amount 50,000,000 shares; having a par value $0.0001.  None are issued and outstanding.

           

            Private Placement of Common Stock

           

As of September 30, 2010, there were no private placements for common stocks being offered through private placement memorandums.

 

 

 

F-7

                

             

 

GREEN EQUITY HOLDINGS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

 For the Six Months Ended September 30, 2010


NOTE 7 COMMITMENTS AND CONTINGENCIES


Operating Lease Obligations


In April, 2006, the Company entered into a 60-month operating lease for office space in Boynton Beach, Florida beginning June 1, 2006 for $4,459 per month, exclusive of recurring utility expenses.  The Company vacated this office space in February 2008 and the landlord obtained a $226,562 default judgment which has been accrued in these financial statements.


NOTE 8 RELATED PARTY TRANSACTIONS


The Company was party to a number of agreements with Biz-com USA, Inc. ("Biz-com") a former major stockholder of the Company.  The Company had non-exclusive access to 500 million minutes of airtime in the 220 MHz frequency band as a result of its Airtime Agreement with Biz-com which was entered into in March 2006.  In addition, the Company had another non-exclusive license agreement (the License Agreement) with Biz-com which provided for rights to use certain wireless digital data intellectual property, including rights to further develop the existing technology or new technology, which new development would be owned by the Company.  The Company also had certain ancillary obligations to Biz-com including lease hold payments on behalf of Biz-com so long the License Agreement was in full force and effect.  In 2008, Biz-com ceased operations and lost ownership of its FCC licenses thereby breaching its obligations under the License Agreement.  Accordingly, the Company believes that all agreements with and obligations to Biz-com related to the License are null and void and that the Company is released from any obligation to Biz-com or any successor-in-interest.


NOTE 9 SUBSEQUENT EVENTS

   

Effective October 8, 2010, the Company entered into a definitive agreement with Evolution Fuels, Inc. to be a 50% member in their fully owned bio diesel plant in Durant, Oklahoma for $125,000.  According to the letter of intent, the Company has invested $25,000 thus far with the balance to be paid upon closing.  The Company also agreed to assist in financing capital improvements to the Durant Plant totaling $1,375,000 beginning January 2011.

 

Effective November 3, 2010, the Company entered into a commitment with LAIC Venture Capital to provide funding in the amount of $6,600,000 for financing the acquisition of Strategic Energy Supplies Corporation in exchange for 35% of the equity interest in Strategic Energy Supplies Corporation.  The Company will retain a 45% equity interest in Strategic Energy Supplies Corporation.  According to the due diligence agreement, the fee of $20,000 commencing their commitment has been paid in advance.  Cost to raise the $6,600,000 is estimated to be $600,000.

 

Finally, effective November 1, 2010, by resolution of the board, the Company authorized the cancellation and return to treasury of 4,525,750 shares of common stock stating that said shareholders had no legal interest in said stock.

 

 

 

F-8

                

             

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.


The following is a general discussion and analysis of our financial condition and results of operations for the six month ended September 30, 2010 that could have a significant effect on reporting financial statements.in the future.


Caution Regarding Forward-Looking Information


All statements contained in this Form 10-Q, other than statements of historical facts, that address future activities, events or developments are forward-looking statements, including, but not limited to, statements containing the words "believe," "expect," "anticipate," "intends," "estimate," "forecast," "project," and similar expressions.  All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.  These statements are based on certain assumptions and analyses made by us in light of our experience and our assessment of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate under the circumstances.  However, whether actual results will conform to the expectations and predictions of management is subject to a number of risks and uncertainties described under "Risk Factors" in Item 1A of Part II below and in the "Risk Factors" section of our Form 10-K for the fiscal year ended March 31, 2010 that may cause actual results to differ materially.


Consequently, all of the forward-looking statements made in this Form 10-Q are qualified by these cautionary statements and there can be no assurance that the actual results anticipated by management will be realized or, even if substantially realized, that they will have the expected consequences to or effects on our business operations.  Readers are cautioned not to place undue reliance on such forward-looking statements as they speak only of the Company's views as of the date the statement was made.  The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Overview


Effective August 16, 2010, the Company changed its name to Green Equity Holdings, Inc. (the Name Change). Concurrently with the Name Change, the Company changed its focus to become a holdings company that invests primarily in high growth businesses offering novel solutions to global energy, natural resources, and environmental challenges.  Pursuant to the new strategy, the company entered into a letter of intent, effective September 2010, to enter into a joint venture with Strategic Energy Supplies Corporation (SESC) to build and operate not less than three (3) grease trap plants within the next twelve months.  The Company is also actively seeking other potential partners or acquisition candidates in the alternative energy business.

 

Previously, the Company was engaged in the development and sale of its CX2 branded 220 MHz digital wireless data communications technology and related services for use by various commercial and industrial application providers and the Homeland Security and Public Safety sector.   


However, due to technological advancements and price competition from cellular telephone and wireless communication services made demand for the lower frequency band transmitter virtually obsolete. Therefore, the Companys management agreed to discontinue manufacturing and marketing the 220 MHz public-safety, emergency, and disaster relief devices.

 

Effective June 28, 2010, the intellectual property CX2 technology, Inc. which had the rights to resell licensed airtime supplied by EPS Wireless Services transmitted from the Sears Tower in Chicago, IL, were forfeited to Stillwater Funding who caused an action and the court granted a writ for garnishment of wages which lead to the discontinued development and marketing of the 220 MHz systems that use EPS Airtime. 


Effective September 21, 2010, the Company entered into a debt-conversion agreement with Empire LP, an accredited investment firm.  The Company and Empire LP negotiated the assignment of GEO Commands accounts payable balance in the amount of $208,500; and notes payable balance in the amount of $104,685 for value to Empire LP in lieu of an undisclosed amount in consideration for a consulting fee paid to GEO Command in the amount of $20,935.  There has been no paid-in-capital, nor gain or loss recognized by the Company in association with the assignment.


Effective September 21, 2010, the Company entered into a debt-conversion agreement with OTC Capital Partners, LLC an accredited investment firm.  The Company and OTC Capital Partners, LLC negotiated the assignment and discount of Michael Rands notes payable balance in the amount of $97,419 for value to OTC Capital Partners, LLC.  OTC Capital Partners, LLC agreed to purchase the in three tranches:  On June 15, 2010 debt in the amount of $26,334 converted into 9,100,000 shares issued between September 13 and October 19, 2010; on August 15, 2010 debt in the amount of $31,333; and on October 15, 2010 debt in the amount of $31,333 will also be converted into an undisclosed amount of Company shares.    

 

 

 

3

                

             

 

Effective September 22, 2010, the Company secured a temporary injunction to prevent the trading of 1,565,000 additional shares of its common stock issued in order to satisfy notes payable owed to a related party.  This discrepancy was uncovered during our March 31, 2010 annual audit prior to finalizing the purchase agreement for said notes by a third party.


We currently have a working capital shortage and must continue to seek and secure significant capital from outside funding sources as our cash flow from operations is insufficient to sustain operations.  No assurances can be given that we will be successful in obtaining such needed capital.  Our inability to promptly secure needed capital will materially adversely affect the Company and its operations, as we believe our current cash position and anticipated receipt of revenues will enable us to sustain current operations for up to approximately one month from the date of this filing.


Results of Operations


Six months ended September 30, 2010 compared to the six months ended September 30, 2009

 

Revenues:   Revenues from operations for the six months ended September 30, 2010 of $469 reflected a decrease of $2,131 from the six months ended September 30, 2009 revenues of $2,500, as the Company discontinued selling equipment and providing consulting services primarily for base stations.  We had minimal revenues in both quarters as we had largely ceased marketing our products and services.

 

Operating Expenses:  Operating expenses reflected a decrease of $12,140 when comparing $93,422 for the six months ended September 30, 2010, with $98,825 for the six months ended September 30, 2009, as a result of a decrease in marketing and investor relations costs.

 

Net Loss:   The Company's net loss was approximately$103,273 for the six months ended September 30, 2010, as compared to a net loss of approximately $115,881 for the six months ended September 30, 2009.

 

Liquidity and Capital Resources


Our condensed financial statements appearing elsewhere in this report have been prepared on a going concern basis that contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.  Management realizes that we must generate capital and revenue resources to enable us to achieve profitable operations.  To the extent that we are unable to obtain additional working capital from operations and/ or other sources as required or otherwise desired, our condensed financial statements will be materially affected and we may be forced to curtail our operations.


We were in a working capital shortage at the fiscal year end of March 31, 2010 and at September 30, 2010, and cash flow from operations is insufficient to sustain our operations as of the date of this filing.   As of the date of this filing, the Company still requires additional financing to sustain operations until a new source of potential revenue can be located.  No assurances are given that we will be successful in obtaining additional needed capital.  Our inability to secure such additional capital will materially adversely affect the Company and its operations.  We believe our current cash position after funding and anticipated receipt of revenues will enable us to sustain current operations for up to approximately one month.

 

At September 30, 2010, we had stockholders' deficit of $1,232,810 total assets of $69,917 and total current liabilities of $1,302,727.  For the six months ended September 30, 2010, we have recognized net loss of $103,273 and for the six months ended September 30, 2010 we used cash for operations in the amount of $76,454.  Our operations and acquisitions have been funded by accredited investors and by loans from our management.  These funds have been used for current working capital covering costs for general and administrative expenses, and corporate legal fees.  


In the event we are unable to raise additional sufficient capital within the near future, such event will significantly restrict and possibly cause us to cease our operations and new objectives which could have a substantially adverse effect on the Company and its shareholders.


Critical Accounting Policies and Estimates


Note 4 of the Notes to the Condensed financial statements, includes a summary of the significant accounting policies and methods used in the preparation of our Condensed financial statements.  We considered the following accounting policies and methods most relevant to our financial position and results of operations either because of the significance of the financial statement item or because they require the exercise of significant judgment or the use of estimates.  In addition, Financial Reporting Release No. 61 requires all companies to include a discussion to address, among other things, liquidity, off-balance sheet arrangements, contractual obligations and commercial commitments.

 

 

 

4

                

             

ITEM 3.  CONTROLS AND PROCEDURES.


Evaluation of Disclosure Controls and Procedures


We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Securities Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our chief executive and financial officer, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as ours are designed to do, and management necessarily was required to apply its judgment in evaluating the cost- benefit relationship of possible controls and procedures.


As of June 30, 2010, an evaluation was performed under the supervision and with the participation of our management, including our chief executive and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation, our chief executive and principal financial officer concluded that our disclosure controls and procedures were effective.


Changes in Internal Control over Financial Reporting


There have been no changes in the Company's internal controls and policies regarding the financial statement reporting process since the Company's last quarterly report to this quarterly report that would inhibit a reasonable persons ability to make an informed decision about investing into the shares of the Company.  


Limitations on the Effectiveness of Controls

 

A control system, no matter how well conceived and operated can only provide reasonable assurance that the objectives of the control system are met.  Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.  The Company's disclosure controls and procedures are designed to provide reasonable assurance of achieving these objectives.  The Company's chief executive officer and principal financial officer concluded that the Company's disclosure controls and procedures are effective at that reasonable level of assurance.

 

 

 

5

                

             

 

PART II

OTHER INFORMATION

 

ITEM 1.  RISK FACTORS.


There have been no material changes to the risk factors discussed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2010.


ITEM 2.  OTHER INFORMATION.


During the quarter ended September 31, 2009, the Company entered into a promissory note in favor of Fusion Capital Investment Corporation in the principal amount of $26,063.  These proceeds were used by the Company for working capital.  The notes are due on demand and do not bear interest.


ITEM 3.  EXHIBITS AND REPORTS ON FORM 8-K.

 

(a)

Exhibits:

 

10.24

Convertible Promissory Note dated December 23, 2009 issued by CX2 Technologies, Inc. in favor of Michael Rand in the principal amount of $1,345.92.

 


 

10.25

Convertible Promissory Note dated November 30, 2009 issued by CX2 Technologies, Inc. in favor of Michael Rand in the principal amount of $1,365.

 


 

10.26

Convertible Promissory Note dated May 23, 2009 issued by CX2 Technologies, Inc. in favor of Michael Rand in the principal amount of $40,500.

 


 

10.27

Convertible Promissory Note dated November 30, 2009 issued by CX2 Technologies, Inc. in favor of GEO Command, Inc. in the principal amount of $6,569.06

 

10.28

Convertible Promissory Note dated August 8, 2009 issued by CX2 Technologies, Inc. in favor of Michael Rand in the principal amount of $100.

   

10.29

Convertible Promissory Note dated July 17, 2008 issued by CX2 Technologies, Inc. in favor of Michael Rand in the principal amount $23,050.

 


 

10.30

Convertible Promissory Note dated February 27, 2009 issued by CX2 Technologies, Inc. in favor of Michael Rand in the principal amount of $18,450.

 


 

10.31

Convertible Promissory Note dated October 30, 2009 issued by CX2 Technologies, Inc. in favor of Michael Rand in the principal amount of $2,600.

 


 

10.32

Convertible Promissory Note dated August 6, 2009 issued by CX2 Technologies, Inc. in favor of GEO Command, Inc. in the principal amount of $8,500.

   

10.33

Convertible Promissory Note dated February 8, 2008 issued by CX2 Technologies, Inc. in favor of Michael Rand in the principal amount of $10,000.

 

 

10.34

Convertible Promissory Note dated November 25, 2009 issued by CX2 Technologies, Inc. in favor of GEO Command, Inc. in the principal amount of $1,784.80.

   

10.35

Convertible Promissory Note dated June 23, 2009 issued by CX2 Technologies, Inc. in favor of GEO Command Inc. in the principal amount of $5,787,66.

   

10.36

Convertible Promissory Note dated June 30, 2009 issued by CX2 Technologies, Inc. in favor of GEO Command Inc. in the principal amount of $8,000.

   

10.37

Convertible Promissory Note dated August 27, 2009 issued by CX2 Technologies, Inc. in favor of Michael Rand in the principal amount of $2,400.

   

10.38

Convertible Promissory Note dated August 6, 2009 issued by CX2 Technologies, Inc. in favor of GEO Command, Inc. in the principal amount $8,500.

 

 

10.39

Convertible Promissory Note dated September 30, 2009 issued by CX2 Technologies, Inc. in favor of GEO Command, Inc. in the principal amount of $1,365.95.

 


 

10.40

Convertible Promissory Note dated March 31, 2009 issued by CX2 Technologies, Inc. in favor of GEO Command, Inc. in the principal amount of $18,961.

 


 

10.41

Convertible Promissory Note dated June 5, 2009 issued by CX2 Technologies, Inc. in favor of GEO Command, Inc. in the principal amount of $14,113.

   

10.42

Convertible Promissory Note dated July 31, 2009 issued by CX2 Technologies, Inc. in favor of GEO Command, Inc. in the principal amount of $37,200.

 

 

31

Rule 13a-14(a)/15d-14(a) Certification of Principal Executive and Principal Financial Officer

 


 

32

Section 1350 Certification

 


 




(b)

Reports on Form 8-K:

 

5.02           

On June 30, 2010, Lester Hahn, sole director, President and CEO of CX2 Technologies, Inc. (the Company ), resigned from all positions held with the Company, including resigning from Board service.  There were no disagreements as defined 17 CFR 240.3b-7, between the Registrant and Mr. Hahn s resignation from the Board.


Also effective, June 30, 2010, the Company appointed Raimundo Dias as sole Director, President and CEO to replace Mr. Hahn.   Mr. Dias will serve as a director until his successor has been elected at the next annual meeting of the Registrant s shareholders or until his earlier resignation, removal, or death, and Mr. Dias has not been appointed to any committees of the Board as the Board does not presently have any committees.


Raimundo Dias, age 39, has over 16 years of experience in the financial markets.  He is also the President of Fusion Capital Investments Corporation, a private company specializing in business development and in 1993 an Associate s Degree in Business Management from a prestigious Catholic University where he has also elected to the board; Organization of Latin American Studies (OLAS).


Mr. Dias does not have any employment agreement or other compensatory agreement in place with the Company, and is not presently being compensated for his service as an officer and director of the Company.


5.07          

On August 14, 2010, holder of the majority of the voting power of the outstanding stock of CX2 Technologies, Inc. (the Company ) voted in favor of changing the Company s name to Green Equity Holdings, Inc. (the Name Change ).  The name change has been made affective on or about August 16, 2010.

                                                                                

  

 

6

                

             


SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Date:  November 22, 2010                                                                                                                                                                               

Green Equity Holdings, Inc.

 

(Registrant)

 

By:  /s/ Raimundo Dias

 

Raimundo Dias, Chief Executive Officer, Principal Executive,

 

Financial and Accounting Officer


 

 

7