0000944543-01-500036.txt : 20011119 0000944543-01-500036.hdr.sgml : 20011119 ACCESSION NUMBER: 0000944543-01-500036 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010831 FILED AS OF DATE: 20011106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GOLD & GREEN INC CENTRAL INDEX KEY: 0001072194 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 113454389 STATE OF INCORPORATION: NV FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-30116 FILM NUMBER: 1775694 BUSINESS ADDRESS: STREET 1: 334 MAIN STREET CITY: PORT WASHINGTON STATE: NY ZIP: 11050 BUSINESS PHONE: 7187694021 MAIL ADDRESS: STREET 1: C/O MAUREEN ABATO ESQ STREET 2: 330 E 39 ST #36-C CITY: NEW YORK STATE: NY ZIP: 10016 10QSB 1 gold801q.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended August 31, 2001 Commission File Number 1-14809 GOLD & GREEN, INC. (Exact name of registrant as specified in its corporate charter) Nevada 11-34543389 (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 334 Main Street Port Washington, NY 11050 (Address of principal executive offices) (516) 944-0789 (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. _X__ Yes ___ No State the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding as of August 31, 2001 Common Stock 20,440,000 PART I - FINANCIAL INFORMATION Item 1. Financial Statements. GOLD & GREEN, INC. AND SUBSIDIARY [A Development Stage Company] UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AUGUST 31, 2001 GOLD & GREEN, INC. AND SUBSIDIARY [A Development Stage Company] CONTENTS PAGE - Unaudited Condensed Consolidated Balance Sheets, August 31, 2001 and November 30, 2000 2 - Unaudited Condensed Consolidated Statements of Operations, for the three and nine months ended August 31, 2001 and for the period from inception on June 4, 1995 through August 31, 2001 3 - 4 - Unaudited Condensed Consolidated Statements of Cash Flows, for the nine months ended August 31, 2001 and for the period from inception on June 4, 1995 through August 31, 2001 5 - Notes to Unaudited Condensed Consolidated Financial Statements 6 - 10 GOLD & GREEN, INC. AND SUBSIDIARY [A Development Stage Company] UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS August 31, November 30, 2001 2000 ___________ ___________ CURRENT ASSETS: Cash $ - $ 499 ___________ ___________ Total Current Assets $ - $ 499 ____________ ____________ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 3,586 $ 1,033 Accounts payable - related party 2,235 100 Accrued expenses 8,627 938 Convertible note payable 65,000 25,000 ___________ ___________ Total Current Liabilities 79,448 27,071 ___________ ___________ STOCKHOLDERS' EQUITY: Common stock, $.001 par value, 25,000,000 shares authorized, 20,440,000 shares issued and outstanding 20,440 20,440 Capital in excess of par value 14,958 14,958 Deficit accumulated during the development stage (114,846) (61,970) ___________ ___________ Total Stockholders' Equity (79,448) (26,572) ___________ ___________ $ - $ 499 ____________ ____________ NOTE: The balance sheet at November 30, 2000 was taken from the audited financial statements at that date and condensed. The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. -2- GOLD & GREEN, INC. AND SUBSIDIARY [A Development Stage Company] UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three For the Nine From Inception Months Ended Months Ended on June 4, August 31, August 31, 1995 Through ___________________ ___________________ August 31, 2001 2000 2001 2000 2001 _________ _________ _________ _________ __________ REVENUE $ - $ - $ - $ - $ - _________ _________ _________ _________ __________ EXPENSES: General and administrative 11,254 11,434 45,164 11,434 80,661 _________ _________ _________ _________ __________ LOSS FROM OPERATIONS (11,254) (11,434) (45,164) (11,434) (80,661) OTHER EXPENSES Interest expense 2,717 - 7,712 - 8,650 _________ _________ _________ _________ __________ LOSS BEFORE INCOME TAXES (13,971) (11,434) (52,876) (11,434) (89,311) CURRENT TAX EXPENSE - - - - - DEFERRED TAX EXPENSE - - - - - _________ _________ _________ _________ __________ LOSS FROM CONTINUING OPERATIONS (13,971) - (52,876) (11,434) (89,311) LOSS FROM DISCONTINUED OPERATIONS (Net of $0 in income taxes) - - - (1,208) (24,535) CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE - - - - (1,000) _________ _________ _________ _________ __________ NET LOSS $(13,971) $(11,434) $(52,876) $(12,642) $(114,846) _________ _________ _________ _________ __________ [Continued] -3- GOLD & GREEN, INC. AND SUBSIDIARY [A Development Stage Company] UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Continued] For the Three For the Nine From Inception Months Ended Months Ended on June 4, August 31, August 31, 1995 Through ___________________ ___________________ August 31, 2001 2000 2001 2000 2001 _________ _________ _________ _________ _________ LOSS PER COMMON SHARE: Continuing operations $ (.00) $ (.00) $ (.00) $ (.00) $ (.01) Discontinued operations - (.00) - - (.00) Change in accounting principle - - - - (.00) _________ _________ _________ _________ _________ LOSS PER COMMON SHARE $ (.00) $ (.00) $ (.00) $ (.00) $ (.01) __________ _________ _________ _________ _________ The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. -4- GOLD & GREEN, INC. AND SUBSIDIARY [A Development Stage Company] UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine From Inception Months Ended on June 4, August 31, 1995 Through ____________________ August 31, 2001 2000 2001 __________ _________ __________ Cash Flows (Used) by Operating Activities: Net loss $ (52,876) $(12,642) $(114,846) Adjustments to reconcile net loss to net cash used by operating activities: Non-cash expense - 10,140 10,140 Changes in assets and liabilities: Increase (decrease) in accounts payable 2,553 (2,902) 3,586 Increase (decrease) in accounts payable - related party 2,135 151 2,235 Increase in accrued expenses 7,689 - 8,627 __________ _________ __________ Net Cash (Used) by Operating Activities (40,499) (5,253) (90,258) __________ _________ __________ Cash Flows From Investing Activities: - - - __________ _________ __________ Cash Flows From Financing Activities: Proceeds from common stock Issuance - - 31,000 Payment of stock offering costs - - (7,906) Capital contributed by shareholder - 2,164 2,164 Proceeds from convertible notes payable 40,000 - 65,000 __________ _________ __________ Net Cash Provided by Investing Activities 40,000 2,164 90,258 __________ _________ __________ Net Increase in Cash (499) (3,089) - Cash at Beginning of Period 499 3,089 - __________ _________ __________ Cash at End of Period $ - $ - $ - __________ _________ __________ Supplemental Disclosures of Cash Flow Information: Cash paid during the period for: Interest $ - $ - $ - Income taxes $ - $ - $ - Supplemental Schedule of Noncash Investing and Financing Activities: For the Period Ended August 31, 2001 None For the Period Ended August 31, 2000 None The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. -5- GOLD & GREEN, INC. AND SUBSIDIARY [A Development Stage Company] NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization - Gold & Green, Inc. (the Company) was organized under the laws of the State of Nevada on June 4, 1995. It originally planned to develop and pursue patent protection for novelty items for the automotive industry. During July 2000, the company discontinued operations upon the resignation of the former officers and the sale by the officers of a controlling interest of the Company common stock to the new Officer and Director (See Note 3). On August 8, 2000, the Company formed a wholly owned subsidiary, Royal Energy Corporation ("Subsidiary") and appointed Dr. O'Brein as Royal's sole officer and director. Additionally, the Board approved the employment of Kathleen Casale as the Subsidiary's Director of Marketing and Thomas Gordon as Subsidiary's Director of Sales. The business of the Subsidiary will be to implement and operate a business to business energy concern that brokers and markets electricity, natural gas and other energy products and services. Current Management has spent extensive time researching and developing this plan, which Management feels is now ready to market. The Company has not generated significant revenues and is considered a development stage company as defined in Statement of Financial Accounting Standards (SFAS) No. 7. Consolidated - The consolidated financial statement include the accounts of the Company and its wholly-owned subsidiary, Royal Energy, Corporation. All significant intercompany transactions have been eliminated in consolidation. Organization Costs - The Company has expensed its organization costs, which reflect amounts expended to organize the Company, in accordance with the Financial Accounting Standards Board's Statement of Position 98-5. Loss Per Share - The computation of loss per share is based on the weighted average number of shares outstanding during the period presented in accordance with Statement of Financial Accounting Standards No. 128, "Earnings Per Share". [See Note 6] Cash and Cash Equivalents - For purposes of the financial statements, the Company considers all highly liquid debt investments purchased with a maturity of three months or less to be cash equivalents. Recently Enacted Accounting Standards - Statement of Financial Accounting Standards ("SFAS") No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities - a replacement of FASB Statement No. 125", SFAS No. 141, "Business Combinations", SFAS No. 142, "Goodwill and Other Intangible Assets", and SFAS No. 143, "Accounting for Asset Retirement Obligations", were recently issued. SFAS No. 140, 141, 142, and 143 have no current applicability to the Company or their effect on the financial statements would not have been significant. -6- GOLD & GREEN, INC. AND SUBSIDIARY [A Development Stage Company] NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Continued] Accounting Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimated. NOTE 2 - DISCONTINUED OPERATIONS During July 2000, The Company's management decided to abandon the Company's original business plan of developing and pursuing patent protection for novelty items for the automotive industry. The Company also intended to manufacture and market its inventions and to seek a merger or acquisition with an existing business. NOTE 3 - CAPITAL STOCK Common Stock - In October 1998, the Company issued 300,000 shares of its previously authorized, but unissued common stock. Proceeds from the sale of stock amounted to $22,094 (or $.10 per share), net of stock offering costs of $7,906. On June 21, 1995, in connection with its organization, the Company issued 10,000,000 shares of its previously authorized, but unissued common stock. Total proceeds from the sale of stock amounted to $1,000. On November 12, 1999, the Company's board of directors approved a 10 for 1 forward stock-split for shareholders of record on November 12, 1999. The financial statements for all periods presented have been restated to reflect the stock-split. On July 31, 2000, the Company's former president, director and majority shareholder as well as the Company's former secretary, director and shareholder executed an agreement with Roger Piacentini to transfer 5,975,000 shares or 58% of the outstanding shares of common stock of the Company owned by the former president and the former secretary. The terms of the agreement required the former officers and directors to resign and appoint Mr. Piacentini as Sole officer and director. On August 7, 2000 the shareholders amended the articles of incorporation increasing the authorized common shares, par value $.001, from 25,000,000 to 100,000,000. During August 2000, pursuant to a meeting of the new board of directors, Dr. John O'Brien accepted appointment as Vice President and Director and was issued 10,100,000 shares of the Company's common stock in lieu of cash compensation, valued at $10,100, resulting in Dr. O'Brien's ownership of 49% of the issued and outstanding common stock of the Company and reducing Piacentini's ownership to 29%. During August 2000, the Company issued 40,000 shares of common stock to employees of the Company in lieu of cash compensation valued at $40. -7- GOLD & GREEN, INC. AND SUBSIDIARY [A Development Stage Company] NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 - RELATED PARTY TRANSACTIONS Contribution Capital - A former shareholder of the Company forgave the Company of $2,164 in advances which has been accounted for as a capital contribution. Professional Services - The principal shareholders are officers of the Company who also provide professional and managerial services to the Company. Rent - The Company maintains, rent free, a mailing address at the office of one of its officers. Accounts Payable - As of August 31, 2001, an officer of the Company has lent the Company a total of $2,235 to pay expenses. NOTE 5 - INCOME TAXES The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards No. 109 "Accounting for Income Taxes". SFAS No. 109 requires the Company to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards. At August 31, 2001, the Company has available unused operating loss carryforwards of approximately $114,000, which may be applied against future taxable income and which expire in 2019 through 2021. The amount of and ultimate realization of the benefits from the operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company, and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the loss carryforwards the Company has established a valuation allowance equal to the tax effect of the loss carryforwards and, therefore, no deferred tax asset has been recognized for the loss carryforwards. The net deferred tax asset is approximately $38,700 as of August 31, 2001, with an offsetting valuation allowance of the same amount resulting in a change in the valuation allowance of approximately $3,400 for the year ended August 31, 2001. As a result of the change in control of the Company the net operating loss carryover of approximately $26,700 were loss and offset against the allowance. -8- GOLD & GREEN, INC. AND SUBSIDIARY [A Development Stage Company] NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 - LOSS PER SHARE The following data show the amounts used in computing loss per share for the periods presented. For the Three For the Nine From Inception Months Ended Months Ended on June 4, August 31, August 31, 1995 Through ____________________ ______________________ August 31, 2001 2000 2001 2000 2001 __________ __________ __________ __________ __________ Loss from continuing operations available to common shareholders (numerator) $ (13,971) $ (11,434) $ (52,876) $ (11,434) $ (89,311) __________ __________ __________ __________ __________ Loss from discontinued operations $ - $ - $ - $ (1,208) $ (24,535) __________ __________ __________ __________ __________ Cumulative effect of change in accounting principle (numerator) $ - $ - $ - $ - $ (1,000) __________ __________ __________ __________ __________ Weighted average shares outstanding used in loss per share for the period (denominator) 20,440,000 13,606,522 20,440,000 11,406,182 11,822,281 __________ __________ __________ __________ __________ Dilutive earnings per share was not presented, as the Company had no common equivalent shares for all periods presented that would effect the computation of diluted earnings (loss) per share. NOTE 7 - GOING CONCERN The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. However, the Company has incurred losses since its inception, and has not yet been successful in establishing profitable operations. Further the Company has current liabilities in excess of current assets. These factors raise substantial doubt about the ability of the Company to continue as a going concern. In this regard, management is proposing to raise any necessary additional funds not provided by operations through loans and/or through additional sales of its common stock. There is no assurance that the Company will be successful in raising this additional capital or in achieving profitable operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. NOTE 8 - CONVERTIBLE NOTE PAYABLE At August 31, 2001, a venture capital group had loaned the Company $65,000. The unsecured convertible notes payable bear interest at 18%, are due March 1, 2001, and are convertible into common stock of the Company at $1.00 per share. -9- GOLD & GREEN, INC. AND SUBSIDIARY [A Development Stage Company] NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 - MARKETING AGREEMENT During October 2000, the Company entered into a definitive marketing agreement with an Ohio licensed utilities supplier under which the Company's subsidiary is a marketing and sales agent for the supplier in certain areas of Ohio. The term of the agreement is for two years with an automatic one year renewal unless cancelled by either party 120 days before the expiration of the agreement. The Company's subsidiary will receive a commission from their sales based on a percentage of the net profits. In connection with the agreement the Company granted the Ohio licensed utilities supplier an option to purchase a 10% interest of the Company's Subsidiary's outstanding common stock at $.001 per share. The option is exercisable for one year from the signing of the agreement and expires upon termination of the agreement. NOTE 10 - SUBSEQUENT EVENT On September 4, 2001, officers of the company contributed back to the company 8,037,500 common shares valued at $8,038. -10- Item 2. Management's Discussion and Analysis or Plan of Operation. Certain statements contained with this report may be deemed "forward- looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (collectively, the "Private Securities Litigation Reform Act of 1995"). All statements in this report other than a statement of historical fact are forward- looking statements that are subject to known and unknown risks, uncertainties and other factors which could cause actual results and performance of the Company to differ materially from such statements. The words "believe," "expect," "anticipate," "intend," "will," and similar expressions identify forward-looking statements. While the Company believes the expectations reflected in such forward-looking statements are reasonable, it can give no assurance such expectations will prove to have been correct. Forward-looking statements contained herein relate to, among other things: - ability or inability to create and improve operations and become profitable on an annualized basis; - anticipated financial performance; - ability to comply with the Company's general working capital requirements; - ability to generate sufficient cash flow from operations to fund all costs of operations; and - all other statements which are not statements of historical fact. While the Company believes the expectations reflected in such forward- looking statements are reasonable, it can give no assurance such expectations will prove to have been correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this report, including, but not limited to: - general economic conditions; - inability to collect in a timely manner a material amount of receivables; - material reduction in revenues; - increased competitive pressures; - management retention and development; - the requirement to use internally generated funds for purposes not presently anticipated; - the inability to become profitable or if not profitable, the inability to secure additional liquidity in the form of additional equity or debt; The Company undertakes no obligations to update any forward-looking statement, whether as a result of new information, future events or otherwise Plan of Operation Royal Energy Corp. ("Royal"), the Company's subsidiary is continuing to look for marketing opportunities in the retail natural gas and electric markets by analyzing the various stages of deregulation in different States, including Texas, Ohio, New York, New Jersey and Pennsylvania. Royal is awaiting NASD approval for trading on the Over the Counter Bulletin Board and has been unable to raise additional capital. It is management's opinion that once NASD approval is achieved, the Company should be able to raise the additional capital necessary to begin delivering electricity and natural gas to retail customers. Royal has assembled an experienced management team that has demonstrated the ability to acquire and serve customers cost effectively. The Company's core target markets, commercial and industrial business customers are high value customers because sales margins are typically substantial and customer loyalty is typically high. The Company's management has developed and refined the processes and procedures to acquire the targeted customers at a very rapid rate. Adding staff and additional geographic markets can increase the projected rate of customer acquisition. The Company's growth plan involves leveraging current management, organization and infrastructure assets to build a large customer base of commercial and industrial electricity and natural gas customers in markets that are currently opening to competition. In addition to the customer base providing substantial sales margins, the opportunity exists to cross-sell additional products in the future at very low cost. Sales of electricity and natural gas to ultimate consumers in the United States exceeded $300 billion in 1998, which makes these markets among the largest physical commodity markets in the U.S. The gas and electric industries are currently in the process of substantial deregulation, which is beginning to allow retail customers to purchase their electricity and natural gas from competitive vendors such as Royal. Historically, the energy industry was dominated by federal and state chartered vertically integrated entities that were granted geographic monopolies. States have reacted to the need for competition by enacting laws and regulations that free natural gas and electric consumers to choose a competitive supplier. Electric and gas utilities are becoming delivery conduits for supplies of energy that are not price regulated. As a result of the ongoing deregulation of the natural gas and electric markets by state and federal authorities, many energy users are now in a position to seek to purchase, at a savings, their electricity and natural gas from competitive suppliers rather than the incumbent monopoly. The electric industry is comprised of three distinct segments-- generation, transmission and distribution. All three segments have traditionally been owned and operated by vertically integrated, investor- owned or municipal utilities that delivered monopoly service within their franchised service area. Through deregulation, the generation segment of the market is being subject to competition while the transmission and distribution segments will continue to be price-regulated. A growing number of electric and gas utilities, including the Company's target markets, are now offering delivery services for electricity that is purchased from competitive suppliers. In most jurisdictions, utilities are actually being required to divest their generation plants so that generators, independent from the regulated electric company, will sell directly to retail customers with the utility simply delivering the power that customers purchase. Royal purchases or brokers electricity from generators and resells it to retail customers. In the natural gas industry, most gas utilities have delivery services available for commercial and industrial business customers under which the gas utility delivers gas purchased from competitive suppliers. Most competitors in the marketplace have concentrated on obtaining very large industrial customers and the small to medium commercial and industrial customer market has been largely ignored. Only recently has this market segment been targeted, but only four or five firms appear to be targeting this segment in the Company's target markets. In the target markets that Royal intends to pursue during the next twelve months, there are over 1,000,000 commercial business customers of which less than 10% have chosen competitive suppliers. In the markets where the Company currently markets and where it intends to expand,1 there are over 1,000,000 commercial and industrial business customers. The vast majority of these customers will have to choose a competitive supplier within the next year. It is estimated that only about 10% of these customers have thus far chosen a competitive electricity and natural gas supplier. In addition, other areas are opening to competition in the electric and gas markets in the next two years. Royal will closely monitor additional markets that can be cost effectively and successfully entered. Royal's goal is to obtain 25,000 to 50,000 commercial and industrial business customers in these target markets. The trend is for traditional utilities to leave the business of supplying commodity services and reduce the scope of the services offered to energy delivery services only, thus providing large growth opportunities to Royal. Royal Energy Corporation started operations in September 2000 with the investigation into entering the deregulating market in Ohio. In October 2000, a definitive marketing agreement was entered into with Advantage Energy, Inc. ("Advantage") under which Royal is marketing and sales agent to Advantage in certain areas within Ohio. Marketing plans have been developed to market electricity in the service area of First Energy Corporation in northern Ohio. Engagement of inbound and outbound call centers is underway and marketing literature is being printed for a direct mail campaign scheduled for early November. A product offering has been developed and client contracts are being designed. Currently Royal Energy is preparing a marketing program for the Metropolitan New York area (New York City, Northern New Jersey, Westchester County and Long Island). Royal is developing marketing materials, retaining telemarketers and a sales force. We are also in discussion with various suppliers of natural gas and electricity for the Metropolitan New York area. PART II - OTHER INFORMATION Item 1. Legal Proceedings. None. Item 2. Changes in Securities and Use of Proceeds. On September 4, 2001, Roger Piacentini, the Company's President returned 2,987,500 Shares to the Company, which represents one-half of his holdings. On September 4, 2001, John O'Brien, a Director and President of Royal Energy Corp., the Company's subsidiary returned 5,050,000 shares to the Company, which represents one-half of his holdings. Both the President and Vice President believed it beneficial to the company' s future to return their Shares. Item 3. Defaults Upon Senior Securities. None. Item 4. Submission of Matters to Vote of Security holders. None. Item 5. Other Information. None. Security Ownership of Management Name Title Class No. of Shares Percent Dr. John O'Brien Vice President Common 5,050,000 40% Roger Piacentini President Common 2,987,500 24% MANAGEMENT The following are the directors, officers and key employees of the Company's Subsidiary Royal Energy Corp. as of the date hereof: Name Age Position Dr. John N. O'Brien 48 President and CEO Kathy Casale 45 Director of Marketing Thomas Gordon 48 Director of Sales DR. JOHN N. O'BRIEN is President, Chief Executive Officer and Director of Royal Energy Corp. Dr. O'Brien has over twenty years of experience in the energy regulatory and business fields. His expertise began in the regulation of nuclear facilities then moving into the regulation of natural gas during the deregulation of that industry and finally into the electric power industry as it restructures. Dr. O'Brien started his career in 1976 as a scientist in Brookhaven National Laboratory's Department of Nuclear Energy where he worked principally on how to best regulate the organization and management of nuclear facilities. While at Brookhaven he was among the youngest individuals in the Brookhaven's history to achieve the rank of Full Scientist and he provided numerous research reports to the Department of Energy, the Nuclear Regulatory Commission, the Office of Technology Assessment, the Congressional Research Service and the U.S. Military, among others. He also provided testimony and background in many regulatory proceedings having to do with energy regulation and authored over 40 published articles, reports and a book on energy matters. In 1985 Dr. O'Brien left Brookhaven and founded Direct Gas Supply Corporation, which under his supervision grew to a $51 million Company in five years. Direct Gas was the first participant in New York State in the deregulation of the natural gas industry and moved the first non-utility gas to consumers in the State under the new regulations. While at Direct Gas, Dr. O'Brien participated in many proceedings before the New York Public Service Commission ("PSC") and the Federal Energy Regulatory Commission and was also responsible for starting the first new utility in New York State in over forty years. Dr. O'Brien sold his Company to British Petroleum and left in 1992. In 1993, Wheeled Electric Power Company retained Dr. O'Brien in order to participate in the ongoing deregulation of the electric power market. Wheeled Electric was able to acquire over 22,000 gas and electric customers during his tenure. In 1999, he was retained by Full Power Corp. to run their All Power Corp. subsidiary to participate in the ongoing natural gas and electricity deregulation market in the Northeast United States. Dr. O'Brien is considered to be an expert on energy deregulation and frequently lectures and testifies on the subject. He has also testified several times before the U.S. Congress and New York Legislature on electric power deregulation. Dr. O'Brien received a Bachelors Degree in Chemistry in 1972, and an M.A. in 1974 and Ph.D. in 1976 from the Maxwell School of Public Administration at Syracuse University. KATHLEEN CASALE is employed as Royal's Director of Marketing. Prior to joining ROYAL, Ms. Casale was Director of Marketing for All Power Corp. Prior to that she was Director of Marketing at Wheeled Electric Power where she was instrumental in acquiring over 22,000 gas and electric customers. Ms. Casale also has an extensive background in corporate restaurant management, including extensive experience with the General Mills Restaurant Group and Bennigan's Restaurants, specializing in staffing, customer and employee relations and P&L management. Her entrepreneurial skills were honed in restaurants that she owned and operated over the last twenty years, being responsible for start up and organization of all facets of the business. At All Power, Ms. Casale developed the telemarketing department and all promotional materials. Her responsibilities included inbound call management including outsource management, outbound solicitation of commercial customers, and setting appointments and schedules for All Power's outside salespeople. Ms. Casale coordinated the advertising and promotion of All Power projects. She also performed background studies and developed reports on issues important to All Power's evolution such as outsource marketing efforts, future business alliances, and evaluation of customer demographics. THOMAS GODRON is Royal's Director of Sales. Prior to joining ROYAL Mr. Gordon was Director of Sales at All Power Corp. Prior to that he was Director of Sales at Wheeled Electric Power where he was instrumental in acquiring over 22,000 gas and electric customers for WEPCO. Mr. Gordon also has an extensive sales background. At All Power, Mr. Gordon developed a sales program and was responsible for the sales department. His responsibilities included coordinating sales efforts, direct solicitation of commercial customers, and appointments and schedules for All Power's outside salespeople. He also performed background studies and developed reports on issues important to All Power's evolution such as outsource marketing efforts, future sales initiatives, and evaluation of customer demographics. Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits - None (b) Reports on Form 8-K - None. SIGNATURES In accordance with the requirements of the Exchange Act, the Registrant has caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. GOLD & GREEN, INC. /s/ Roger Piacentini November 6, 2001 By: __________________________ Date: ___________________ Roger Piacentini, Pres. & Director Date: Port Washington, New York _______________________________ 1 The Company's current target markets are the natural gas and electric service areas of Consolidated Edison of New York ("Con Ed"), Orange & Rockland Utilities ("ORU"), Brooklyn Union Gas Company ("BUG"), United Illuminating ("UI"), Philadelphia Electric Company ("PECO") and Public Service Electric & Gas ("PSE&G").