Green Parts International, Inc. - FORM 10-Q/A

Attached files

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EX-32.1 - EX-32.1 - Green Parts International, Inc.	ex-32_1.htm
EX-31.1 - EX-31.1 - Green Parts International, Inc.	ex-31_1.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number 814-00175

GREENPARTS INTERNATIONAL, INC.

(Exact name of Registrant as specified in its charter)

Nevada	20-5535892
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

844 Regina Dr.
Atlanta, GA	303018
(Address of principal executive offices)	(Zip Code)

(404) 589-8000

(Registrant's telephone number, including area code)

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

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 (or for such shorter period that the registrant was required to submit and post such files).

Yes

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 definition of "large accelerated filer, "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Accelerated filer ☐

Non-accelerated filer ☐

Smaller reporting company ☑

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

Yes

As of April 24, 2015 the registrant had 133,176,655 shares of common stock outstanding.

Green Parts International, Inc.

INDEX TO FORM 10-Q

PART I.	FINANCIAL INFORMATION	Page

Item 1.	Consolidated Financial Statements:

	Consolidated Balance Sheets at March 31, 2015 (unaudited), and December 31, 2014 (unaudited)	3

	Consolidated Statements of Operations for the Three Months Ended March 31, 2015 (unaudited), and March 31, 2014 (unaudited)	4

	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2015 (unaudited) and March 31, 2014 (unaudited)	5

	Notes to Consolidated Financial Statements	7

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	21

Item 4.	Controls and Procedures	21

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	21

Item 1A.	Risk Factors	21

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22

Item 6.	Exhibits	22

SIGNATURES		23


GREENPARTS INTERNATIONAL. INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
	3/31/2015			12/31/2014

Assets
Current assets
Cash	$	281,842		$	24,545
Accounts receivable , net		372,841			395,598
Inventory, net		3,529,806			3,638,976
Note Receivable - Current portion		60,000			60,000
Deferred Finance Cost - current portion		48,660			48,660
Deposits		277,773			137,773
Other current assets		116,361			162,498
Total Current Assets		4,687,283			4,468,050
Property, plant and equipment, net		2,432,013			2,475,528
Goodwill		600,371			600,371
Note receivable - net of currrent portion		85,000			100,000
Deferred Finance Cost - net of current portion		171,952			341,911
Total Assets	$	7,976,619		$	7,985,860

Liabilities and Equity(Deficit)

Current liabilities
Accounts payable and accrued expenses	$	972,977		$	546,557
Environmental liabilities		100,000			100,000
Taxes Payable		224,888			224,888
Notes payable - current portion		3,656,874			3,707,943
Derivative liability		189,208			246,910
Total Current Liabilities		5,143,947			4,826,298
Notes Payable - net of current portion		68,965			42,429
Notes Payable - related parties		2,430,651			2,239,669
Total Liabilities		7,643,563			7,108,396
Commitments and Contingencies (Note 9)
Greenparts International. Inc. ("GNPT") shareholders' equity
Preferred Stock 100,000,000 authorized at $.001 par value shares issued and outstanding 3,000,000 and 3,000,000 at March 31, 2015 and December 31, 2014		3,000			3,000
Common Stock 400,000,000 authorized at $0.001 par value; shares issued and outstanding 112,442,509 and 73,357,364 at March 31, 2015 and December 31, 2014		112,443			73,357
Additional paid-in capital		3,419,565			3,375,310
Retained earnings		(3,201,952	)		(2,574,203	)
Total equity		333,056			877,464
Total liabilities and equity(Deficit)	$	7,976,619		$	7,985,860

"The accompanying notes are an integral part of these consolidated financial statements."


GREENPARTS INTERNATIONAL. INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
	For the Three Months Ended
	3/31/2015			3/31/2014

Sales	$	1,989,184		$	3,063,987

Cost of Sales		1,778,117			2,373,279

Gross profit		211,067			690,708

Operating expenses		619,580			565,930

Net income from operations		(408,513	)		124,778

Other income(expense)
Gain(loss) on Derivative contract		11,385			(114,743	)
Interest expense		(229,388	)		(117,936	)
Total Other Income (Expense)		(218,003	)		(232,679	)

Income from continuing operations
before income taxes		(626,516	)		(107,901	)

Income taxes		(1,233	)		(16,562	)

Net income	$	(627,749	)	$	(124,463	)

Basic and Diluted income per share
Basic income per share		(0.0062	)		(0.0019	)
Diluted income per share		(0.0050	)		(0.0019	)

Weighted average number of shares
Outstanding basic		100,976,627			64,618,604
Outstanding diluted		126,371,707			64,618,604

"The accompanying notes are an integral part of these consolidated financial statements."


GREENPARTS INTERNATIONAL. INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

	For the Three Months Ended
	3/31/2015			3/31/2014
Cash flows from operating activities
Net income (loss) from continuing operations	$	(627,749	)	$	(124,463	)
Adjustments to reconcile net loss to net cash
used by operating activities:
Depreciation		43,515			43,400
Accretion of debt discount		17,254			54,256
(Gain) loss on Derivative		(11,385	)		114,743

(Increase) decrease in accounts receivable		22,757			29,566
(Increase) decrease in inventory		109,170			(35,456	)
(Increase) decrease in other assets		(93,863	)		(101,724	)
Increase (decrease) in accounts payable		426,420			(29,217	)
Increase (decrease) in net income tax payable		0			20
Net cash used in operating activities		(113,881	)		(48,875	)
Cash flows from investing activities
None		0			0
Net cash provided(used) by investing activities		0			0
Cash flows from financing activities
Payments on notes payable		(105,666	)		(203,183	)
Payments on long term lease obligations		(8,156	)		(40,684	)
Payments received on note receivable		15,000			15,000
Net Proceeds from borrowings		470,000			398,500
Net cash provided(used) by financing activities		371,178			169,633
Net increase(decrease) in cash		257,297			120,758

Cash, beginning of period		24,545			57,004

Cash, end of period	$	281,842		$	177,762

"The accompanying notes are an integral part of these consolidated financial statements."


GREENPARTS INTERNATIONAL. INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(CONTINUED)
(unaudited)

	For the Three Months Ended
	3/31/2015			3/31/2014


Supplemental disclosure of cash flow information

Interest paid		$	212,134		$	117,936
Income taxes paid		$	1,233		$	16,562

Supplemental disclosure of
non-cash activities

Debt repayment though stock issuance		$	46,317		$	0
Common stock issued for services		$	0		$	0

"The accompanying notes are an integral part of these consolidated financial statements."

GREENPARTS INTERNATIONAL, INC.

NOTES TO FINANCIAL STATEMENTS

AS OF MARCH 31, 2015 AND 2014

Note 1 - Company Background

The consolidated financial statements include Greenparts International, Inc.("GNPT"), Greenparts, Inc., and Metal Max Recycling, LLC, and are referred collectively herein as "the Company". The Company's principal activities include processing of salvage vehicles and trucks and other scrap material for the purpose of recycling of metals, selling used parts and rebuilding of vehicles for resale. The Company's facilities are primarily based in the vicinity of Atlanta, Georgia.

The Company has acquired various acquisitions in an effort to capitalize on the growing need of recycling and turning these materials into multiple revenue streams and expanded distribution.

Note 2 - Summary of Significant Accounting Policies

This summary of significant account policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and the notes are the representation of the Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to U.S. generally accepted accounting principles ("US GAAP") and have been consistently applied in the preparation of the financial statements.

Basis of Presentation

The Consolidated Financial Statements include the accounts of the Company and its majority-owned and wholly-owned subsidiaries. All significant intercompany account balances, transactions, profits and losses have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, 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

For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable, the carrying amounts approximate fair value due to their short maturities.

Revenue Recognition

The majority of the Company's revenue is derived from the sale of recycled OEM products and aftermarket products. Revenue is recognized when the products are shipped, title and risk of loss transfer to the buyer, and collectability is reasonably assured, subject to an allowance for estimated returns, discounts and allowances that management estimates based upon historical information. Retail revenues are recognized when customers pay for parts, and wholesale product revenues are recognized when customer weight certificates are received following shipments. Historically, there have been very few sales returns and adjustments that impact the ultimate collection of revenues; therefore, no material provisions have been made when the sale is recognized.

Cash and Cash Equivalents

Cash comprise cash in hand and cash held on demand with banks. The Company considers all highly liquid investments with original maturities of 90 days or less to be cash equivalents. Cash equivalents are carried at cost, which approximates market value. Cash and cash equivalents comprise of the non-interest bearing checking accounts in US Dollars.

Note 2 - Summary of Significant Accounting Policies (Continued)

Accounts Receivables, Net

Accounts receivable represent amounts due from customers on product and other sales. These accounts receivable, which are reduced by an allowance for doubtful accounts, are recorded at the invoiced amount and do not bear interest. The Company evaluates the collectability of its accounts receivable based on a combination of factors, including whether sales were made pursuant to letters of credit. In cases where management is aware of

circumstances that may impair a specific customer's ability to meet its financial obligations, management records a specific allowance against amounts due, and reduces the net recognized receivable to the amount the Company believes will be collected. For all other customers, the Company maintains an allowance that considers the total receivables outstanding, historical collection rates and economic trends. Accounts are written off when all efforts to collect have been exhausted.

Inventory

A salvage vehicle product is a recycled vehicle part suitable for sale as a replacement part. A core is a recycled mechanical part that is not suitable for sale as a replacement part without further remanufacturing work. Salvage inventory and cores are recorded at the lower of cost or market using weighted average method. Cost is established based upon the price the Company pays for a vehicle. Scrap inventory is inventory that is considered for the purpose of recycling by mills that process metals. For all inventory, carrying value is reduced regularly to reflect the age of the inventory and current anticipated demand. If actual demand differs from management estimates, additional reductions to inventory carrying value would be necessary in the period such determination is made.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized. As property and equipment are sold or retired, the applicable cost and accumulated depreciation are removed from the accounts and any resulting gain or loss thereon is recognized as operating expenses.

Depreciation is calculated using the straight-line method over the estimated useful lives or, in the case of leasehold improvements, the term of the related lease, including renewal periods, if shorter. Estimated useful lives are as follows:

Buildings	40 years
Equipment	5-15 years

The Company reviews property, plant and equipment and all amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Recoverability is based on estimated undiscounted cash flows. Measurement of the impairment loss, if any, is based on the difference between the carrying value and fair value.

Impairment of Long-Lived Assets and Amortizable Intangible Assets

The Company follows ASC 360-10, "Property, Plant, and Equipment," which established a "primary asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.

Note -2- Summary of Significant Accounting Policies (Continued)

Intangible Assets - Goodwill

The excess of the purchase price over net tangible and identifiable intangible assets of business acquired is carried as Goodwill on the balance sheet. Goodwill is not amortized, but instead is assessed for impairment at least annually and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of goodwill may be impaired.

Measurement of the impairment loss, if any, is based on the difference between the carrying value and fair value of reporting unit. The goodwill impairment test follows a two-step process. In the first step, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of goodwill, an impairment loss will be recognized in an amount equal to that excess. There were no material impairments to the carrying value of long-lived assets and intangible assets subject to amortization during the years ended December 31, 2014, and 2013.

Business segments

ASC 280, "Segment Reporting" requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. The Company determined it has two operating segments as of March 31, 2015 and 2014.

Acquisitions

The Company recognizes the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at the acquisition date, measured at their fair values as of that date. Contingent purchase consideration is recorded at fair value at the date of acquisition. Any excess purchase price over the fair value of the net assets acquired is recorded as goodwill. Within one year from the date of acquisition, the Company may update the value allocated to the assets acquired and liabilities assumed and the resulting goodwill balances as a result of information received regarding the valuation of such assets and liabilities that was not available at the time of purchase. Measuring assets and liabilities at fair value requires the Company to determine the price that would be paid by a third party market participant based on the highest and best use of the assets or interests acquired. Acquisition costs are expensed as incurred.

Environmental Liabilities

The Company estimates future costs for known environmental remediation requirements and accrues for them on an undiscounted basis when it is probable that the Company has incurred a liability and the related costs can be reasonably estimated but the timing of incurring the estimated costs is unknown. The Company considers various factors when estimating its environmental liabilities. Adjustments to the liabilities are recorded to selling, general and administrative expense and made when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or when expenditures are made for which liabilities were established. Legal costs incurred in connection with environmental contingencies are expensed as incurred. When only a wide range of estimated amounts can be reasonably established and no other amount within the range is a better estimate than another, the low end of the range is recorded in the financial statements. In a number of cases, it is possible that the Company may receive reimbursement through insurance or from other potentially responsible parties for a site. In these situations, recoveries of environmental remediation costs from other parties are recognized when the claim for recovery is actually realized. The amounts recorded for environmental liabilities are reviewed periodically as site assessment and remediation progresses at individual sites and adjusted to reflect additional information that becomes available. Due to evolving remediation technology, changing regulations, possible third party contributions, the subjective nature of the assumptions used and other factors, amounts accrued could vary significantly from amounts paid.

Note -2- Summary of Significant Accounting Policies (Continued)

Fair Value Measurements

For certain financial instruments, including accounts receivable, accounts payable, interest payable, advances payable and notes payable, the carrying amounts approximate fair value due to their relatively short maturities.

On January 1, 2008, the Company adopted ASC 820-10, "Fair Value Measurements and Disclosures." ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company did not identify any non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with ASC 815.

In February 2007, the FASB issued ASC 825-10 "Financial Instruments." ASC 825-10 permits entities to choose to measure many financial assets and financial liabilities at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. ASC 825-10 is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007. The Company adopted ASC 825-10 on January 1, 2008. The Company chose not to elect the option to measure the fair value of eligible financial assets and liabilities.

Income Taxes

Deferred income taxes are provided using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry-forwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

Note -2- Summary of Significant Accounting Policies (Continued)

Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations.

Borrowings

Borrowings are recognized initially at cost which is the fair value of the proceeds received, net of transaction costs incurred. In subsequent periods, borrowings are stated at amortized cost using the effective yield method; any difference between fair value of the proceeds (net of transaction costs) and the redemption amount is recognized as interest expense over the period of the borrowings.

Provisions

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where the Company expects a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain.

The Company recognizes the estimated liability to repair or replace products sold still under warranty at the balance sheet date. This provision is calculated based on past history of the level of repairs and replacements.

Research and Development

Research expenditure is recognized as an expense as incurred. Costs incurred on development projects (relating to the design and testing of new or improved products) are recognized as intangible assets to the extent that such expenditure is expected to generate future economic benefits. Other development expenditures are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Development costs that have been capitalized are amortized from the commencement of the commercial production of the product on a straight-line basis over the period of its expected benefit. The amortization periods adopted do not exceed five years.

Legal Matters

The Company currently and from time to time is involved in litigation incidental to the conduct of the business. The damages claimed in some of this litigation are substantial. Based on an internal review, the Company accrues reserves using management's best estimate of the probable and reasonably estimable contingent liabilities. The management does not currently believe that any of these legal claims incidental to the conduct of the business, individually or in the aggregate, will result in liabilities material to the combined financial position, results of operations or cash flows. However, if such estimates related to these contingent liabilities are incorrect, the future results of operations for year could be materially adversely affected.

Special Purpose Entities

The Company does not have any off-balance sheet financing activities.

Net Income per Share

The Company computes net income (loss) per share in accordance with ASC 260-10, "Earnings Per Share." The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per share gives effect to all dilutive potential common shares outstanding during the period using the "as if converted" basis. For the three months ended March 31, 2015, and 2014 there were no potential dilutive securities.

Note -2- Summary of Significant Accounting Policies (Continued)

Common Stock

There is currently only one class of common stock. Each share common stock is entitled to one vote. The authorized number of common stock of Greenparts International Inc. at March 31, 2015 was 400,000,000 thousand shares with a nominal value per share of $0.001. Authorized shares that have been issued and fully paid amounted to 112,442,509 thousand common stocks.

Preferred Stock

On June 4, 2007, the Company's Board of Directors authorized the issuance of Series "A" Preferred stock of 3,000,000. These shares had super voting rights of 100 common shares votes to each preferred share. The Company issued a total of 3,000,000 shares were issued on this date.

Derivative Financial Instruments

The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. The Company reviews the terms of the common stock, warrants and convertible debt it issues to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument.

Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. The Company uses a lattice model for valuation of the derivative. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value.

The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense, using the effective interest method.

Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether net cash settlement of the derivative instrument could be required within the 12 months of the balance sheet date.

Note 3 – Recent Accounting Pronouncements

The Company has implemented all other new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Note 4 - Inventories

	3/31/2015			12/31/2014

Processed and unprocessed scrap metal		$	1,125,798		$	1,154,617
Finished goods - parts			2,404,008			2,484,359

Inventories, net		$	3,529,806		$	3,638,976

Note 5 - Property, Plant and Equipment

Property, plant and equipment and related accumulated depreciation consist of the following:

	3/31/2015			12/31/2014

Machinery and equipment	$	2,948,478		$	2,948,478
Land and building		135,000			135,000
Improvements		258,108			258,108
Property, plant and equipment, gross		3,341,586			3,341,586
Less: accumulated depreciation		(909,573	)		(866,058	)
Property, plant and equipment, net	$	2,432,013		$	2,475,528

Depreciation expense was $45,515 and $43,400 for the three months ended March 31, 3015 and 2014.

Note 6 - Bank Loans and Long-Term Leases


Notes payable consist of the following for the periods ended;	3/31/2015		12/31/2014

Capital lease obligations secured by excavator equipment, interest at 9%, monthly payments of $2,206 with a maturity date of July 1, 2018.	$	83,148	$	0

Bank revolving line of credit with maximum $500,000 limit. Annual interest rate at 6.5%, secured by equipment		477,377		473,377

Note agreement for machine parts with no stated interest rate and a maturity date of February 1, 2013. The lender has confirmed this note is not considered in default.		32,927		32,927

Capital lease obligations secured by fencing equipment with a maturity date of June 1, 2015.		11,847		15,078

Capital lease obligations secured by weighting equipment with a maturity date of June 1, 2017.		57,118		62,013

Bank working capital loan unsecured with an interest rate of 12%, and a maturity date in March 2015		89,524		218,073

Bank working capital term loan unsecured with an interest rate of 18%, monthly payments of $27,570 and a maturity date of May 24, 2015		82,901		0

Nine month convertible note with 8% stated interest rate,maturity date of August 9, 2014. Initial proceeds were $73,000, shares convert at 40% of market value. This note has no unamortized amortized debt discount.		1,280		44,250

On March 27, 2014, the Company secured a senior note secured line of credit facility for a maximum amount of $10 million. On September 11, 2014, the Company has drawn $2.3 million credit facility with the six months renewable maturity at 15% interest. This note is secured by Compant assets and recorded net of discount of $532,977.		2,254,451		2,283,438

Twelve month convertible note with 8% stated interest rate, maturity date of March 1, and shares convert at 60% of market. This is recorded net of debt discount of $7,825.		23,686		8,337

Twelve month convertible note with 8% stated interest rate, maturity date of March 1, and shares convert at 60% of market. This is recorded net of debt discount of $13,487.		39,967		13,665

On August 2014, the Company entered into an Accounts Receivables Advance Agreement for the advance amount of $700 thousand with the 12 months maturity at 15% interest payable in daily instalments of $3,096. Such credit facility is secured by the Company's tangible and intangible assets.		546,613		574,214

Twelve month convertible note with 12% stated interest rate, maturity date of October 31, 2014. Initial proceeds were $25,000, shares convert at $0.25 per share. This note has no unamortized amortized debt discount.		25,000		25,000

Total Notes Payable		3,725,839		3,750,372

Less Current Portion		3,656,874		3,707,943

Long Term Notes Payable	$	69,965	$	42,429

Note 7 - Note Receivable

During the 2012 the company sold the assets of a business Booming (Valencia Motors LLC) which was previously acquired in 2007. The remaining items that were sold were not material to the Company and therefore no additional detail is provided. The sale was for $425,000 in the form of a note which included $30,000 paid down and a note for the balance. There was $160,000 in notes receivable as of December 31, 2014 $60,000 current and $100,000 long term, and $220,000 in notes receivable at December 31, 2013, $60,000 current and $160,000 long term.

Note 8 – Commitments and Contingencies

Commitments

The table below sets forth the Company's future minimum obligations under non-cancelable operating leases as of March 31, 2015:

Lease Obligations

	Long		Capital
Twelve	Term		Lease
months ending	Debt		Obligation		Total

3/31/2015	$	3,655,874	$	49,263	$	3,705,137
3/31/2106		246,000		19,584		265,584
3/31/2017		246,000		19,584		265,584
3/31/2018		1,920,155		0		1,920,155
3/31/2018 & Beyond		0		0		0

Totals	$	6,068,029	$	88,431	$	6,156,460

Guarantees, Indemnifications and Warranties

Standard Guarantees / Indemnifications

In the ordinary course of business, the Company enters into a number of agreements that contain standard guarantees and indemnities where the Company may indemnify another party for, among other things, breaches of representations and warranties. These guarantees or indemnifications are granted under various agreements, including those governing (i) purchases and sales of assets or businesses, (ii) leases of real property, (iii) licenses of intellectual property, (iv) long-term supply agreements, (v) employee benefits services agreements and (vi) agreements with public authorities on subsidies for designated research and development projects. These guarantees or indemnifications issued are for the benefit of the (i) buyers in sale agreements and sellers in purchase agreements, (ii) landlords or lessors in lease contracts, (iii) licensors or licensees in license agreements, (iv) vendors or customers in long-term supply agreements, (v) service providers in employee benefits services agreements and (vi) governments or agencies subsidizing research or development. In addition, the Company guarantees some of the payables of its subsidiaries to purchase raw materials in the ordinary course of business. These parties may also be indemnified against any third party claim resulting from the transaction that is contemplated in the underlying agreement. While some of these guarantees extend only for the duration of the underlying agreement, many survive the expiration of the term of the agreement or extend into perpetuity (unless they are subject to a legal statute of limitations). There are no specific limitations on the maximum potential amount of future payments that the Company could be required to make under its guarantees, nor is the Company able to estimate the maximum potential amount of future payments to be made under these guarantees because the triggering events are not predictable. With respect to some of these guarantees, the Company maintains limited insurance coverage that mitigates the potential payments that may be required to be made.

Warranties

The Company does not make express warranties on its products, other than that they comply with the Company's specifications; therefore, the Company does not record a warranty liability. Adjustments for product quality claims are not material and are charged against net sales.

Environmental Matters

The Company periodically evaluates its obligations under environmental regulations. As obligations are determined, they are recognized immediately. Potential liabilities, which might arise as a result of changes in existing regulations, civil litigation or legislation, cannot be estimated but could be material. In the current enforcement climate under existing legislation, management believes that there are no significant liabilities for environmental damage. The Company has had studies done in 2008 and 2009 and had these studies further updated in 2012 in conjunction with requirements needed for refinancing. Based upon these studies, a provision has been established. The liabilities relate to the potential future remediation of soil contamination, groundwater contamination and storm water runoff issues and were not individually material to any site. No material environmental compliance enforcement proceedings are currently pending related to these sites.

Legal Proceedings

During the year, the Company was involved in a number of court proceedings (both as a plaintiff and a defendant) arising in the ordinary course of business. In the opinion of management, there are no current legal proceedings or other claims outstanding, which could have a material effect on the result of operations or financial position of the Company and which have not been accrued or disclosed in these financial statements.

Note 9 – Net Income per Share

The following table sets forth the information used to compute basic and diluted net income per share attributable to GNPT for the three months ended March 31 2015 and 2014:

	3/31/2015			3/31/2014

Net Income (Loss)	$	(627,749	)	$	(124,463	)

Weighted-average common shares outstanding basic:

Weighted-average common stock basic		100,976,627			64,618,604
Equivalents
Stock options		-			-
Warrants		-			-
Convertible Notes		25,395,080			-
Weighted-average common shares
outstanding- Diluted		126,371,707			64,618,604

Note 10 – Income Taxes Payable

Income from continuing operations before income taxes was as follows for the three months ended March 31:

Current:	3/31/2015				12/31/2014

Federal		$	0			$	0
State			0				0
Total current tax expense			0				0

Tax Payable:
Federal			200,413				200,413
State			24,475				30,475
Total taxes payable			224,888				230,888
Total income tax expense		$	1,233			$	67,637

	3/31/2015				12/31/2014
Federal statutory rate			15	%			35	%
State taxes, net of credits			6	%			6	%
Foreign income taxed at different rates			0	%			0	%
Section 199 deduction			0	%			-41	%
Other			0	%			0	%
Effective tax rate			0	%			0	%

In fiscal 2015 the effective tax rate differed from the U.S. federal statutory rate of 34.0% primarily due to tax benefits from accelerated depreciation deductions.

Note 11 – Related Party Transactions

For the purposes of these financial statements, parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely the legal form.

Related parties may enter into transactions which unrelated parties might not, and transactions between related parties may not be effected on the same terms, conditions and amounts as transactions between unrelated parties. The Company currently pays rent of $15,000 per month on its main facility located at 844 Regina Drive in Atlanta which is owned by the President Asif Balagamwala.

During the year ended December 31, 2014, the Company was relieved of liabilities from loans to Piedmont bank. This debt was assumed by Asif Balagamwala and the Company did not have to repay the loan. Therefore a related party liability was recorded at that time.

Additionally, balances and transactions with related parties of the Company consist of the following:

		3/31/2015		12/31/2014

Notes Payable Related Party	Asif Balagamwala	$	113,700	$	113,700

TOTAL		$	113,700	$	113,700

Note 12 – Segment Information

The accounting standards for reporting information about operating segments define operating segments as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker is the Chief Executive Officer. The Company is organized by line of business. While the Chief Executive Officer evaluates results in a number of different ways, the line of business management structure is the primary basis for which the allocation of resources and financial results are assessed. Under the aforementioned criteria, the Company operates in two operating and reporting segments: metal purchasing, processing, recycling and selling, and used auto parts.

Metal Max Recycling is one segment of the Company that derives its income from the sale of metals and recyclable materials both in the United States and overseas. Our other business segment is Greenparts, which purchases used and salvaged vehicles, sells parts from those vehicles through its retail facilities and wholesale operations, and sells the remaining portion of the vehicles to metal recyclers, including Metal max Recycling.

The information provided below is obtained from internal information that is provided to the Company's chief operating decision maker for the purpose of corporate management. The Company uses operating income (loss) to measure segment performance. The Company does not allocate corporate interest income and expense, income taxes, other income and expenses related to corporate activity or corporate expense for management and administrative services that benefit both segments. In addition, the Company does not allocate restructuring charges to the segment operating income (loss) because management does not include this information in its measurement of the performance of the operating segments. Because of this unallocated income and expense, the operating income (loss) of each reporting segment does not reflect the operating income (loss) the reporting segment would report as a stand-alone business and therefore we do not present indirect operating expenses.

The table below illustrates the Company's results by reporting segment for the years ended December 31:

Segment Information

	3/31/2015				3/31/2014
Revenue

Parts		$	1,099,232			$	1,511,290
Scrap Metal			889,952				1,552,697

Total Revenue		$	1,989,184			$	3,063,987

	3/31/2015				3/31/2014
Product Cost

Parts		$	1,138,388			$	1,276,401
Scrap Metal			639,729				1,096,878

Total Product Cost		$	1,778,117			$	2,373,279

	3/31/2014				3/31/2014
Net Operating Income

Parts		$	(381,539	)		$	82,353
Scrap Metal			(26,974	)			42,425

Total Net Operating Income		$	(408,513	)		$	124,778

Note 13 – Goodwill

In the fourth quarter of fiscal 2014, the Company performed its annual goodwill impairment testing by comparing the fair value of each reporting unit with its carrying value, including goodwill. As a result of both tests, the Company determined that the fair value for which goodwill was allocated was in excess of its respective carrying value and the goodwill balance was not impaired.

The determination of fair value of the assets used to perform the first step of the impairment test requires judgment and involves significant estimates and assumptions about the expected future cash flows and the impact of market conditions on those assumptions. Future events and changing market conditions, including a sustained decline in the Company's market capitalization, may lead the Company to reevaluate its assumptions as to future growth rates, operating margins, capital expenditures, working capital requirements, tax rates, terminal growth rates, appropriate discount rates and other factors that may result in changes in the estimates of discounted future cash flows. Due to the inherent uncertainty associated with forming these estimates, actual results could differ from those estimates.

The carrying amount of goodwill for the as of March 31, 2015 and December 31, 2014:

Goodwill Source	3/31/2015		12/31/2014

Samson	$	560,371	$	560,371
Booming		0		40,000
Jonsboro:		40,000		0
Impairment Charges		0		0

Total Goodwill	$	600,371	$	600,371

Note 14 - Derivative Liability

The Company evaluated their convertible note agreements pursuant to ASC 815 and due to there being no minimum or fixed conversion price resulting in an indeterminate number of shares to be issued in the future, the Company determined an embedded derivative existed and ASC 815 applied for all their convertible note with a cumulative balance of $189,208 at March 31, 2015, respectively.

In accordance with the option allowed in ASC 815, the Company has elected to value the derivatives separately at the fair value on the issuance date using the Black-Scholes valuation model and bifurcate the instruments. The Company valued the embedded derivative within the convertible note using the Black-Scholes valuation model. The result of the valuation is a derivative liability in the amount of $189,208 as of March 31, 2015 and $246,910 as of December 31, 2014. We estimated the fair value of the derivative using the Black-Scholes valuation method with assumptions including: (1) term of 0.75 years; (2) a computed volatility rate of 127.02% (3) a discount rate of 0.12% and (4) zero dividends. The valuation of this embedded derivative was recorded with an offsetting gain/loss on derivative liability.

The Company evaluated all convertible debt and outstanding warrants to determine whether these instruments may be tainted from the aforementioned derivative. It was determined there was sufficient share authorization for all instruments.



Convertible note Derivative Liability at 12/31/14	$	246,910

(Gain) Loss on Derivative for the Three Months Ended March 31, 2015		(11,385	)

Conversions during the period		(46,317	)

Derivative liability from new notes		0


Convertible note Derivative Liability at 3/31/15	$	189,208

PART I

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

The following is a discussion of certain factors affecting Registrant's results of operations, liquidity and capital resources. You should read the following discussion and analysis in conjunction with the Registrant's consolidated financial statements and related notes that are included herein under Item 1 above.

Overview

Greenparts International is a salvage and reclamation company, dealing expressly with non-landfill materials through sorting, recycling, and proper containment and disposal of bio-hazard. Green Parts feels high demand in emerging markets and the need to recycle in today's world will allow the company, its shareholders, and well-wishers the ability to capitalize on the demand for these products while benefiting the world with a cleaner environment. Millions of vehicles are considered salvaged by individuals and insurance companies, with the ability to have various channels to distribute the products derived from the vehicles, Green Parts maximizes the return for each salvaged vehicle by combining the efforts of the selling of used parts with warranties and selling the rest as scrap material to emerging markets.

The Company will become the premier supplier of recycled auto parts through a strategy of consolidation and expanded distribution. Connecting the Company's salvage yards with a proprietary inventory system, Greenparts will leverage its salvage yards as the core of its decentralized distribution system. Over the next five years, the Company will grow to approximately 36 salvage yards and 30 retail stores in 10 key markets. The issuer is not a shell company (as defined in Rule 12b-2 of the Exchange Act).

The company and/or any predecessor have not, and are not currently in the process of filing bankruptcy, receivership or any similar proceeding.

The Issuer currently owns no trademark rights nor has any trademarks pending.

Regulations

The company does not foresee any substantial changes that could adversely affect the business of the company at this time. The market for the Issuer's product is intensely competitive. We believe that the principal competitive factors affecting the Issuer's targeted market are those companies offering auto parts under standard brands, none of-which market uniquely used and recycled environmentally friendly parts. We believe we compete adequately with respect to these factors. The Issuer believes it has a competitive edge in the Company's diversity as a manufacturer and wholesaler of its unique products.

The company conducts the business under the guidelines of the State of Nevada. The company, at this time does not need and has not requested government approval on the products and services provided other than local operating business licenses.

Suppliers

The primary suppliers of salvage vehicles for the automotive recycling industry are insurance companies. After an automobile accident, adjusters representing the insurance provider estimate the cost of repairing the vehicle and gather information to estimate the vehicle's pre-loss value. If the cost to repair is greater than the pre-loss value minus the estimated salvage value, the vehicle is classified as a total loss ("totaled"). The insurance carrier then settles with the owner of the totaled vehicle, receives title to the vehicle and either assigns the vehicle to a salvage vehicle auction company or sells it directly to a reseller or a dismantler.

Other suppliers of salvage vehicles include automobile rental companies, vehicle leasing companies and financial institutions. Rental and leasing companies supply vehicles that have either been damaged or have exceeded an internally-determined mileage limit or age. Financial institutions such as banks and other lenders also supply vehicles that have been repossessed. Vehicles from these suppliers pass along the same distribution chain as those from insurance companies with a greater percentage being sold to resellers (i.e. used car dealers).

Customers

Buyers represent the final player in the distribution cycle and include refineries, consumers and auto industry specialists. Do-it-yourself vehicle owners often seek used parts from salvage yards due to the significant cost advantage. Likewise, many vehicle owners grant permission to auto repair shops to use less expensive salvage parts so long as they carry similar warranties to that of newer parts. Refineries purchase the remaining parts for recycling metals into its purest form for the re-production of materials derived of steel, aluminum, and copper. Distribution methods of the products or services;

One of the Company's key business drivers is a robust inventory and distribution system tying together all of the Company's salvage yards, retail stores and call center. By maintaining an efficient decentralized system with centralized controls conforming to the highest standard processes, much of the overhead that would be required in a centralized distribution operation is kept in the Company's gross profits.

Customers will have a variety of methods to purchase high quality, warranted recycled automotive parts. Greenparts will have a number of retail stores in high traffic, easily accessible areas for most consumers in their target markets to purchase parts. For those who are close to the salvage yards, there will also be the option to go to the yard and purchase the same quality parts. Additionally, there is also an option for consumers to purchase parts through the internet (PC or thin client devices) or through the Company's toll-free number, where inventories will be updated real-time through the Greenparts automated inventory system.

Products

Green Parts International is a recycler of automobiles and appliances providing raw materials for manufactures in the United States, China, Korea, and India. By separating the different materials and parts and shipping them to the end users Green Parts maximizes the effectiveness of the recycling efforts. Parts from cars and office equipment are reused and do not end up in landfills. By utilizing state of the art recycling equipment the parts not suitable for reuse are broken down to their base elements and sold as raw materials for manufacturing. These materials include steel, aluminum, and copper. Automotive oils and greases are also recovered and recycled. This "green" approach to total recycling is not only good for the environment but also offers tremendous profit potential.

Raw Material Availability

The Company will accumulate its inventory of vehicles from a number of sources. In addition to individuals who sell the vehicles directly to salvage yards, Greenparts will also purchase vehicles from a number of salvage auctions. As the Company becomes more established and is able to generate sufficient volume, Greenparts anticipates that it will be able to deal directly with the larger insurance companies to acquire their "totaled" vehicles at a more favorable price than through auctions.

Marketing

After vehicles are purchased from a car owner at a Greenparts yard or from a salvage auction, the vehicles are stripped of the usable hard parts (engines, transmissions, starters, compressors, windshields, etc.) and soft parts (mirrors, lights, seats, grilles, etc.) These parts are then cleaned, refurbished if necessary, labeled and placed into the Greenparts inventory system.

GEOS (Greenparts Electronic Ordering System) is designed to elevate the recycled parts industry to new heights of service and customer satisfaction. More than just an electronic ordering system for used parts, GEOS offers automotive service establishments and body shops a complete solution for all of their parts and shop supply needs.

The GEOS system is built on a web-based extranet platform. Service establishments and body shops receive, at no upfront cost, a web terminal with LCD monitor that connects to the GEOS platform via the Internet. On the system, using only a mouse, the customer can order used parts sourced from the salvage operator or new parts and supplies from established local vendors. Used parts are delivered by the salvage operator, while new parts orders are fulfilled by the local vendors with commissions paid to the salvage operator. A reciprocal commission structure is in place that rewards the local new parts vendors for developing new customer relationships for the salvage operators using the GEOS system.

Results of Operations

The Company intends to operate its business primarily through its two main segments, as described above, as well as entities that may be formed or acquired in the future. The table below is meant to give the reader some overall additional information into the detail of some of the line items presented in the financial statements.

				For the Three Months Ended
				3/31/2015			3/31/2014

			Revenues	$	1,989,184		$	3,063,987

			Cost of Sales		1,778,117			2,273,279
	1	)	Wages		290,886			321,004
			Fuel		6,825			11,130
			Depreciation		43,515			43,400
			Maintenance		27,701			78,711
			Tools & Hardware		3,387			8,305
			Supplies		10,036			29,744
	2	)	Other G & A		222,445			173,636

			Interest expense		(229,388	)		(117,936	)
			Tax Provisions		(1,233	)		(16,562	)
			Other Income(Expense)		(3,400	)		(114,743	)

			NET INCOME	$	(627,749	)	$	(124,463	)

1) Wages includes all wages, including subcontractor cost and commissions, general, administrative and operating wages.
2) Other G&A expenses include travel, entertainment, supplies, postage and other general & administrative expenses incurred in the day to day operations of the Company.

Results of Operations 2015-2014

Analysis of the three months ended March 31, 2015 and 2014.

Revenues

For the three months ended March 31, 2015, revenues were approximately $ 1,989,184 compared to $3,063,987,for 2014 decreasing by $1,074,803. Most of this decrease is attributable to winter weather conditions and the lack of available capital to provide enough materials consistently from local suppliers to keep sales at a consistent level.

Cost of Goods Sold

Cost of goods sold decreased to $1,778,117 for the three months ended March 31, 2015 from $2,373,279 for 2014, a decrease of $595,122 Most of this decrease is attributable to weather conditions restricting operational activity and other factors mentioned in sales above.

G & A Expenses

G&A expense increased to $619,580 for the three months ended March 31, 2015 from $565,930 for the three months Ended March 31, 2014, an increase of $53,650. The Company cost have remained relatively constant with the major line items here being our labor, maintenance and depreciation cost.

Other income and expenses

Other items decreased to a net expense of $218,003 for the three months ended March 31, 2015 from a net expense of $232,679 for the same period last year, resulting in a total net other expense item decrease of $14,676. The majority of other expenses continue to be interest expense of $229,388 in 2015 and $117,936 in 2014.

Net income (loss)

Net loss was $627,749 for the three months ended March 31, 2015 from a net loss of $1244,463 for the three months ended March 31, 2014, an increase of $552,286. The increase was mostly the result of increased sales with our other expense items held in check and described above in detail.

Liquidity and Capital Resources

On March 31, 2015 we had cash and cash equivalents totaling $281,342. At this time, the Company feels this is adequate to fund our operations in the short term future.

The Company has continually restructured its financing over 2014 and 2013 time period reducing cash flow and liquidity requirements and also feels it has access to sufficient unused credit lines to bridge the gap of any cash flow deficiencies. We anticipate seeking additional opportunities through potential acquisitions or investments. This and other such acquisitions or investments may consume cash reserves or require additional cash or equity. Our working capital and additional funding requirements will depend upon numerous factors to be determined on a case by case basis as these opportunities arise.

Critical Accounting Policies and Estimates

Our significant accounting policies are more fully described in Note 2 to our consolidated financial statements. In preparing our financial statements in accordance with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that, among other things, affect the reported amounts of assets and liabilities and reported amounts of revenues and expenses. These estimates are most significant in connection with our critical accounting policies, namely those of our accounting policies that are most important to the portrayal of our financial condition and results and require management's most difficult, subjective or complex judgments. These judgments often result from the need to make estimates about the effects of matters that are inherently uncertain. Actual results may differ from those estimates under different assumptions or conditions. We believe that the following represents our critical accounting policies:

Forward-Looking Statements

This Quarterly Report on Form 10-Q includes forward-looking statements. Words such as "may," "will," "plan," "should," "expect," "anticipate," "believe," "if," "estimate," "intend," "project" and similar words or expressions are used to identify these forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. However, these forward-looking statements are subject to risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different. These factors include, among other things, those described under Risk Factors in Item 1A of our Form 10, filed with the SEC on June 11, 2013.

Other matters set forth in this Quarterly Report may also cause our actual future results to differ materially from these forward-looking statements. We cannot assure you that our expectations will prove to be correct. In addition, all subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements mentioned above. You should not place undue reliance on these forward-looking statements. All of these forward-looking statements are based on our expectations as of the date of this Quarterly Report. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a "smaller reporting Company" as defined by Rule 12b-2 of the Securities Exchange Act of 1934 (the "Exchange Act") and are not required to provide information under this item.

ITEM 4 CONTROLS AND PROCEDURES

Evaluation of and Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting of the Company. Management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our internal control over financial reporting as of March 31, 2015 based on the criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, because of the Company's limited resources and limited number of employees, management concluded that, as of March 31, 2015, our internal control over financial reporting is not effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles.

To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of legal and accounting professionals. As we grow, we expect to increase our number of employees, which will enable us to implement adequate segregation of duties within the internal control framework. This quarterly report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to temporary rules of the SEC that permit the company to provide only management's report in this annual report.

Changes in Internal Control over Financial Reporting

There was no change in our internal controls over financial reporting identified in connection with the requisite evaluation that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II

ITEM 1. LEGAL PROCEEDINGS

The Company currently has no open or pending legal proceedings. In addition management is unaware of any pending situations that could eventually lead to legal proceedings. All prior legal proceedings have been settled and the Company currently still has small liabilities outstanding with the total amounts due recorded as liabilities in the included financial statements.

ITEM 1A. RISK FACTORS

We are a "smaller reporting Company" as defined by Rule 12b-2 of the Securities Exchange Act of 1934 (the "Exchange Act") and are not required to provide information under this item.

ITEM 2. RECENT SALES OF UNREGISTERED SECURITIES

·	On February 10, 2015, the Company issued 4,687,500 shares on a partial conversion of a Convertible Promissory Note held by Asher Enterprises, Inc..

·	On March 11, 2015, the Company issued 6,691,304 shares on a conversion of a Convertible Promissory Note held by Asher Enterprises, Inc..

·	On March 11, 2015, the Company issued 8,464,646 shares on a conversion of a Convertible Promissory Note held by Asher Enterprises, Inc..

·	On March 13, 2015, the Company issued 4,242,424 shares on a conversion of a Convertible Promissory Note held by Asher Enterprises, Inc..

·	On March 13, 2015, the Company issued 3,303,438 shares on a conversion of a Convertible Promissory Note held by LG Capital.

·	On March 13, 2015, the Company issued 2,500,000 shares on a conversion of a Convertible Promissory Note held by JMJ Financial.

·	On March 16, 2015, the Company issued 4,395,833 shares on a conversion of a Convertible Promissory Note held by Asher Enterprises, Inc..

·	On March 23, 2015, the Company issued 4,800,000 shares on a conversion of a Convertible Promissory Note held by JMJ Financial.

ITEM 6. EXHIBITS, REPORTS ON FORM 8-K AND FINANCIAL STATEMENT SCHEDULES

(a) Exhibits

Exhibits required to be attached by Item 601 of Regulation S-B are listed in the Index to Exhibits and are incorporated herein by this reference.

(b) Reports on Form 8-K.

There were no Form 8-K filings which were filed during this reporting period on Form 10-Q:

EXHIBIT

NO. DESCRIPTION

3(i) * Articles of Incorporation as amended

3(vi) * Bylaws

21 Subsidiaries

CERTIFICATIONS

31.1 Rule 13a-14(a) Sarbanes-Oxley Sec. 302 certifications of Principal Executive Officer and Chief Financial Officer

32.1 Certifications of Principal Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350

* Incorporated herein by reference from filings previously made by the Company

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, hereunto duly authorized, this 26th day of May 2015.

Greenparts International, Inc.

/s/ Asif M. Balagamwala

----------------------------

CEO/CFO

Green Parts International, Inc. - FORM 10-Q/A - May 26, 2015

Attached files

Green Parts International, Inc. Reports