NOTE 1 - ORGANIZATION AND BUSINESS

6 Months Ended

Jun. 30, 2011

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

NOTE 1 – ORGANIZATION AND BUSINESS

Organization

Genesis Electronics Group, Inc. was incorporated on April19, 2001 in the State of Florida.

Nature of Business

Genesis Electronics Group, Inc. (the “Company”) and it’s wholly owned subsidiary Genesis Electronics, Inc. (“Genesis”), operate in two reportable business segments (1) Website segment, and (2) Solar powered consumer products.

Liquidity and Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company incurred a net loss of $338,248 for the six months ended June 30, 2011, as compared to a net loss of $179,547 for the six months ended June 30, 2010. Additionally, the Company experienced a net loss of $828,000 for the year ended December 31, 2010 and had experienced net losses in each of the prior nine years. These matters, among others, raise substantial doubt about the Company’s liquidity and ability to fund future operations.

At June 30, 2011, the Company had cash of only $13,987 and significant current liabilities.

Accordingly, the Company has limited liquidity and access to capital.  The Company has insufficient liquidity to fund its operations for the next twelve months or less. In addition, any of the following factors could result in insufficient capital to fund the Company’s operations for a period significantly shorter than twelve months:

● if the Company’s capital requirements or cash flow vary materially from its current projections;

● if the Company is unable to timely collect its accounts receivable;

● if the Company is unable to timely bring new successful products to market; or

● if other unforeseen circumstances occur.

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern and the Company’s independent registered public accounting firm has issued a report expressing substantial doubt about the Company’s ability to continue as a going concern.

The Company’s plans for correcting these deficiencies include ongoing efforts to bring new products to market and explore other products with its customers, seeking new equity capital and timely collection of accounts receivable.

The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the inability of the Company to continue as a going concern.