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Green EnviroTech Holdings Corp.
0001428765
10-Q
2011-09-30
false
--06-30
No
Yes
Yes
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<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in"><font style="font-size: 11pt">NOTE
2- <u>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in"><font style="font-size: 11pt"><b><u>Development
Stage Company</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><font style="font-size: 11pt">The
Company is considered to be in the development stage as defined in ASC 915, “<i>Accounting and Reporting by Development Stage
Enterprises</i>”. The Company has devoted substantially all of its efforts to the corporate formation and the raising of
capital.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b><u>Use
of Estimates</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><font style="font-size: 11pt">The
preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements
and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in; text-indent: 0.5in"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 1in"><font style="font-size: 11pt"><b><u>Comprehensive Income
(Loss)</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 4pt 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 4pt 1in; text-align: justify"><font style="font-size: 11pt">The
Company adopted ASC 220-10, “Reporting Comprehensive Income.” ASC 220-10 requires the reporting of comprehensive income
in addition to net income from operations.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 8.35pt 0.25in 0 1in; text-align: justify"><font style="font-size: 11pt">Comprehensive
income is a more inclusive financial reporting methodology that includes disclosure of information that historically has not been
recognized in the calculation of net income.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b> </b></font></p>
<p style="margin: 12pt 0 6pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b><u>Cash
and Cash Equivalents</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.3in 6pt 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.3in 6pt 1in; text-align: justify"><font style="font-size: 11pt">The
Company considers all highly liquid debt instruments and other short-term investments with maturity of three months or less, when
purchased, to be cash equivalents.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.3in 0 1in; text-align: justify"><font style="font-size: 11pt">The
Company maintains cash and cash equivalent balances at one financial institution that is insured by the Federal Deposit Insurance
Corporation.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b><u>Fixed
Assets</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 6pt 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 22.5pt 0 1in; text-align: justify"><font style="font-size: 11pt">Fixed
assets are stated at cost, less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated
useful lives of the related assets. Costs of maintenance and repairs will be charged to expense as incurred. The Company through
September 30, 2011, incurred some engineering and design costs on a facility they are planning to build or purchase to refurbish.
All of these costs are non-depreciable until the facility is in service.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b><u>Recoverability
of Long-Lived Assets</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 6pt 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 22.5pt 0 1in; text-align: justify"><font style="font-size: 11pt">The
Company reviews long-lived assets on a periodic basis whenever events and changes in circumstances have occurred which may indicate
a possible impairment. The assessment for potential impairment will be based primarily on the Company’s ability to recover
the carrying value of its long-lived assets from expected future cash flows from its operations on an undiscounted basis.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 22.5pt 0 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 22.5pt 0 1in; text-align: justify"><font style="font-size: 11pt">If
such assets are determined to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds
the fair value of the assets. Fixed assets to be disposed of by sale will be carried at the lower of the then current carrying
value or fair value less estimated costs to sell.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b><u>Fair
Value of Financial Instruments</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 6pt 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 22.5pt 0 1in; text-align: justify"><font style="font-size: 11pt">The
carrying amount reported in the condensed consolidated balance sheets for cash and cash equivalents, accounts payable, and accrued
expenses approximate fair value because of the immediate or short-term maturity of these financial instruments.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 22.5pt 0 1in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 22.5pt 0 0"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b><u>Income
Taxes</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><font style="font-size: 11pt">The
Company accounts for income taxes utilizing the liability method of accounting. Under the liability method, deferred taxes are
determined based on differences between financial statement and tax bases of assets and liabilities at enacted tax rates in effect
in years in which differences are expected to reverse. Valuation allowances are established, when necessary, to reduce deferred
tax assets to amounts that are expected to be realized.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify; text-indent: 0in"><font style="font-size: 11pt"><b> </b></font></p>
<p style="margin: 12pt 0 6pt"><font style="font-size: 11pt"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify; text-indent: 0in"><font style="font-size: 11pt"><b><u>Revenue
Recognition</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify; text-indent: 0in"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 6pt 1in; text-align: justify"><font style="font-size: 11pt">The
Company will generate revenue from sales as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 117pt; text-indent: -0.25in"><font style="font-size: 11pt">1)      
Persuasive evidence of an arrangement exists;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 117pt; text-indent: -0.25in"><font style="font-size: 11pt">2)      
Delivery has occurred or services have been rendered;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 117pt; text-indent: -0.25in"><font style="font-size: 11pt">3)      
The seller’s price to the buyer is fixed or determinable, and</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 117pt; text-indent: -0.25in"><font style="font-size: 11pt">4)      
Collectable is reasonably assured.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 6pt 1in; text-align: justify"><font style="font-size: 11pt"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><font style="font-size: 11pt">The
Company anticipates that the plastics that are recovered will be their main source of revenue, with the automotive parts manufacturers
being the primary market. However, the use of the Company’s recycled materials is not limited to just automotive parts, therefore
the Company will market numerous other industries both domestically and internationally.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><font style="font-size: 11pt">In
addition, the Company believes that they will generate revenue from joint ventures with companies in the waste oil and waste plastics
recycling businesses, including royalties generated by the sale of crude oil products developed by the joint venture partners.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify; text-indent: 0.5in"><font style="font-size: 11pt"><b><u>(Loss)
Per Share of Common Stock</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 0; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><font style="font-size: 11pt">Basic
net loss per common share is computed using the weighted average number of common shares outstanding. Diluted earnings per share
(EPS) include additional dilution from common stock equivalents, such as stock issuable pursuant to the exercise of stock options
and warrants. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports
a loss because to do so would be anti-dilutive for periods presented. The following is a reconciliation of the computation for
basic and diluted EPS:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.3in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="width: 6.5in; font-size: 12pt">
<tr style="vertical-align: bottom">
<td><font style="font-size: 11pt"> </font></td>
<td style="font-weight: bold; text-align: center"><font style="font-size: 11pt">September 30,</font></td>
<td style="font-weight: bold; text-align: center"><font style="font-size: 11pt">September 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 11pt"> </font></td>
<td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 11pt">2011</font></td>
<td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 11pt">2010</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 11pt"> </font></td>
<td style="font-weight: bold; text-align: center"><font style="font-size: 11pt"> </font></td>
<td style="font-weight: bold; text-align: center"><font style="font-size: 11pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 68%; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 11pt">Net loss</font></td>
<td style="width: 16%; border-bottom: Black 1pt solid; text-align: center"><font style="font-size: 11pt">$(2,464,818)</font></td>
<td style="width: 16%; border-bottom: Black 1pt solid; text-align: center"><font style="font-size: 11pt">$(3,422,329)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 11pt"> </font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font-size: 11pt">Weighted-average common shares</font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 11pt">  outstanding (Basic)</font></td>
<td style="text-align: center"><font style="font-size: 11pt">66,874,053</font></td>
<td style="text-align: center"><font style="font-size: 11pt">61,753,139</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font-size: 11pt"> </font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 11pt">Weighted-average common stock</font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font-size: 11pt">Equivalents</font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 11pt">    Stock options</font></td>
<td style="text-align: center"><font style="font-size: 11pt">-</font></td>
<td style="text-align: center"><font style="font-size: 11pt">-</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 11pt">    Warrants</font></td>
<td style="border-bottom: Black 1pt solid; text-align: center"><font style="font-size: 11pt">1,851,857</font></td>
<td style="border-bottom: Black 1pt solid; text-align: center"><font style="font-size: 11pt">-</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 11pt"> </font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font-size: 11pt">Weighted-average common shares</font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td>
<td style="text-align: center"><font style="font-size: 11pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; border-bottom: Black 2.5pt solid"><font style="font-size: 11pt">  outstanding (Diluted)</font></td>
<td style="border-bottom: Black 2.5pt solid; text-align: center"><font style="font-size: 11pt">68,725,910</font></td>
<td style="border-bottom: Black 2.5pt solid; text-align: center"><font style="font-size: 11pt">61,753,139</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.3in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.3in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="color: Red; font: 9pt Arial, Helvetica, Sans-Serif; margin: 0 0.25in 0 1.3in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"><b> </b></font></p>
<p style="margin: 12pt 0 6pt"><font style="font-size: 11pt"> </font></p>
<p style="margin: 6pt 0 12pt"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 6pt 1in; text-align: justify"><font style="font-size: 11pt"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 6pt 1in; text-align: justify"><font style="font-size: 11pt"><b> </b></font></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in"><font style="font-size: 11pt">NOTE
2- <u>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 6pt 1in; text-align: justify"><font style="font-size: 11pt"><b><u>Inventory</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0.25in 0 1in; text-align: justify"><font style="font: 11pt Times New Roman, Times, Serif; color: black">Inventory
is valued at the lower of cost (on a first-in, first-out (FIFO) basis) or market. Inventory of $15,496 as of September 30, 2011
consists of the plastic raw materials that are </font>awaiting conversion. This material is located at Green EnviroTech Riverbank,
Inc. (GETRB). GETRB inventory has been accumulated in anticipation of opening the Riverbank facility. There has been no reserve
for obsolescence<font style="color: black"> of inventory and inventory is only removed upon use. The Company includes in its Cost
of Revenues its costs of materials as well as other direct costs in the delivery of its materials to the warehouse and products
to its customers as well as freight and other costs. When the Company commences the conversion process they will also include
the work in process inventory and finished goods in its inventory. This inventory was sold on December 28, 2011. (See Note 15)</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 0; text-indent: 1in"><font style="font-size: 11pt"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 0; text-indent: 1in"><font style="font-size: 11pt"><b><u>Goodwill
and Other Intangible Assets</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 0; text-indent: 0.5in"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><font style="font-size: 11pt"><i>Impairment
of Excess Purchase Price over Net Assets Acquired (Goodwill and Other Long-Term Assets) </i>– The Company determines impairment
by comparing the fair value of the goodwill, using the undiscounted cash flow method, with the carrying amount of that goodwill.
The Company recognized goodwill in the amount of $5,148,377 as a result of the Magic Bright Limited acquisition on March 30, 2011.
ASC 350 requires that goodwill and intangible assets with indefinite useful lives no longer be amortized, but instead be tested
for impairment at least annually in accordance with ASC 350.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><font style="font-size: 11pt">ASC
350 also requires that intangible assets with finite useful lives be amortized over their respective estimated useful lives to
their estimated residual values, and reviewed for impairment in accordance with ASC 360, "Accounting for the Impairment or Disposal
of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of.” The Company’s assessment for impairment of assets
involves estimating the undiscounted cash flows expected to result from use of the asset and its eventual disposition. An impairment
loss recognized is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset, and considers
year-end the date for its annual impairment testing, unless information during the year becomes available that requires an earlier
evaluation of impairment testing.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><font style="font-size: 11pt">The
goodwill that was recorded was offset by the return of the preferred shares and forgiveness of the remaining $700,000 note payable
when the contract with Magic Bright was canceled effective April 1, 2011 when the Company disposed of this subsidiary. As a result,
no goodwill remains as of September 30, 2011.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 6pt 1in; text-align: justify"><font style="font-size: 11pt"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 6pt 1in; text-align: justify"><font style="font-size: 11pt"><b><u>Uncertainty
in Income Taxes</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><font style="font-size: 11pt">The
Company follows ASC 740-10, “Accounting for Uncertainty in Income Taxes” (“ASC 740-10”). This interpretation
requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. ASC
740-10 is effective for fiscal years beginning after December 15, 2006. Management has adopted ASC 740-10 for 2007, and they evaluate
their tax positions on an annual basis, and have determined that as of September 30, 2011, no additional accrual for income taxes
is necessary.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 6pt 1in"><font style="font-size: 11pt"><b> </b></font></p>
<p style="margin: 12pt 0 6pt; text-indent: 60pt"><font style="font-size: 11pt">   <b><u>Recent Issued Accounting Standards</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt">In
May 2011, FASB issued Accounting Standards Update (ASU) No. 2011-04, <i>Amendments to Achieve Common Fair Value Measurement and
Disclosure Requirements in U.S. GAAP and IFRSs</i>. FASB ASU 2011-04 amends and clarifies the measurement and disclosure requirements
of FASB ASC 820 resulting in common requirements for measuring fair value and for disclosing information about fair value measurements,
clarification of how to apply existing fair value measurement and disclosure requirements, and changes to certain principles and
requirements for measuring fair value and disclosing information about fair value measurements. The new requirements are effective
for fiscal years beginning after December 15, 2011. The Company plans to adopt this amended guidance on October 1, 2012 and at
this time does not anticipate that</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt">it
will have a material impact on the Company’s results of operations, cash flows or financial position.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt">In
June 2011, FASB issued ASU No. 2011-05, <i>Presentation of Comprehensive Income</i>, which amends the disclosure and presentation
requirements of Comprehensive Income. Specifically, FASB ASU No. 2011-05 requires that all nonowner changes in stockholders’
equity be presented either in 1) a single continuous statement of comprehensive income or 2) two separate but consecutive statements,
in which the first statement presents total net income and its components, and the second statement presents total other comprehensive
income and its components. These new presentation requirements, as currently set forth, are effective for the Company beginning
October 1, 2012, with early adoption permitted. The Company plans to adopt this amended guidance on October 1, 2012 and at this
time does not anticipate that it will have a material impact on the Company’s results of operations, cash flows or financial
position.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt">In
September 2011, FASB issued ASU 2011-08, <i>Testing Goodwill for Impairment</i>, which amended goodwill impairment guidance to
provide an option for entities to first assess qualitative factors to determine whether the existence of events or circumstances
leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount.
After assessing the totality of events and circumstances, if an entity determines that it is not more likely than not that the
fair value of a reporting unit is less than its carrying amount, performance of the two-step impairment test is no longer required.
This guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December
15, 2011, with early adoption permitted. Adoption of this guidance is not expected to have any impact on the Company’s results
of operations, cash flows or financial position.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1in; text-align: justify"><font style="font-size: 11pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 12pt 1in; text-align: justify; text-indent: 0in"><font style="font-size: 11pt">There
were other updates recently issued, most of which represented technical corrections to the accounting literature or application
to specific industries and are not expected to have a material impact on the Company’s financial position, results of operations
or cash flows.</font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 3- <u>STOCKHOLDERS’
EQUITY (DEFICIT)</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><b><u>Preferred Stock</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The Company has 25,000,000 preferred
shares of $0.001 par value stock authorized. The Company had not issued preferred stock until March 30, 2011 when they issued 1,000,000
shares of preferred stock to the shareholders of Magic Bright to complete the Magic Bright acquisition. The parties agreed effective
April 1, 2011 to cancel the agreement. As a result of the cancelation, Magic Bright has returned the shares of stock issued in
the transaction. (See Note 14). As of September 30, 2011, there are no shares of preferred stock issued and outstanding.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><b><u>Common Stock</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The Company was established
with two classes of stock, common stock – 250,000,000 shares authorized at a par value of $0.001; and preferred stock –
25,000,000 shares authorized at a par value of $0.001. On June 28, 2010, the Company amended its certificate of incorporation to
effect an increase in its authorized common shares from 75,000,000 to 250,000,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On October 17, 2007, the Company
issued 44,999,895 shares of common stock to one director for cash in the amount of $0.000334 per share for a total of $15,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On July 17, 2008, the Company
sold 15,000,000 shares of common stock to a group of 26 investors for cash in the amount of $0.001667 per share for a total of
$25,000 pursuant to a registration statement on Form S-1 which became effective on April 8, 2008.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">In October 2009, Kristen Paul,
the owner of 44,999,895 shares of the Company’s common stock sold her shares to Green EnviroTech Corp. These shares were
cancelled. With the cancellation of those shares, Kristen Paul resigned as the sole officer and director and was replaced by former
officers of Green EnviroTech.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Pursuant to the Merger Agreement,
on November 20, 2009 (the “Closing Date”), the Subsidiary merged with and into Green EnviroTech resulting in Green
EnviroTech becoming a wholly-owned subsidiary of the Company (the “Merger”). As a result of the Merger, the Company
issued 44,999,895 shares of its common stock (the “Acquisition Shares”) to the shareholders of Green EnviroTech, representing
75% of the issued and outstanding common stock following the closing of the Merger. The outstanding shares of Green EnviroTech
were cancelled.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On March 11, 2010, the Company
effected a fifteen to 1 forward stock split in the form of a stock dividend. The shares and per share amounts included herein have
been reflected retroactive to the stock split.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">During the year ended December
31, 2010, the Company issued 2,600,000 shares of common stock with a fair value of $2,195,000 (between $0.65 and $1.00 per share).
In addition, the Company issued 1,006,488 shares of common stock to convert loans payable that were outstanding to a related party
(754,377) and to a non-related party (252,111). These shares were converted at $1.00 which was the fair value of the stock at the
date of conversion. The Company also canceled 89,625 shares of common stock valued at $67,218 to a consultant for services not
performed, as the certificate was returned.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">During the three months ended
March 31, 2011, the Company issued 131,250 shares of common stock with a fair value of $98,750 (100,000 shares valued at $.80 and
31,250 shares valued at $.60) for professional services. The Company also issued 184,000 shares of common stock with a fair value
of $104,880 (valued at $.57 per share) to employees of Magic Bright Limited as a condition for the acquisition of Magic Bright.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">During the three months ended
June 30, 2011, the Company issued 597,250 shares of common stock with a fair value of $108,495 (250,000 shares valued at $.18 per
share, 70,000 shares valued at $.15 per share, 177,250 shares valued at $.22 per share and 100,000 shares valued at $.14 per share)
for professional services. The Company issued an additional 290,641 shares of common stock issued to Centurion Private Equity LLC
for fees in connection with a funding agreement which is further explained in Note 13. (248,591 shares valued at $.50 per share
and 42,050 shares valued at $.24 per share). The Company issued an additional 333,333 shares of common stock issued at a price
of $.15 per share for working capital. The $50,000 from these common shares was used to reduce the note balance owed to HE Capital
S.A. The Company issued an additional 4,790,081 shares of common stock placed into reserve as part of the agreement with Asher
Enterprises Inc. concerning their notes which are further explained in Note 5. (These shares were valued at par value $.001 while
in reserve)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">During the three months ended
September 30, 2011, the Company did not issue any shares of common stock.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">As of September 30, 2011, there
were 69,843,313 shares of common stock issued and outstanding.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><b><u>Warrants</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On January 24, 2011, the Company
issued 190,000 warrants to the investors who subscribed to the Secured Debenture financing. These warrants are five-year warrants
to purchase an aggregate of 190,000 shares of common stock at an exercise price of $0.40 per share, which may be exercised on a
cashless basis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The value of these warrants
was $123,120 at inception which represents the debt discount on the Secured Debentures issued on January 24, 2011. The debt discount
will be amortized over the life of the debt which was six months. On July 21, 2011, the debt was extended an additional six months
to a new due date of January 24, 2012. The investors received a total 380,000 shares of common on December 7, 2011 for agreeing
to the extension. The extension and modification to the Secured Debentures, did not constitute a material modification under ASC
470-50, and thus the Company recorded the shares as additional expense with a liability to issue these shares. On February 2, 2012,
this due date was extended to September 24, 2012. (See Note 6 & Note 15)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">In addition, the Company issued
19,000 five-year warrants to the brokers as commission on the Secured Debenture transaction. These warrants carry the same term
as the investor warrants. The value of the warrants was $18,242 and was reflected as loan fees in statement of operations for the
nine months ended September 30, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.3in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.3in 0 1in; text-align: justify">On April 22, 2011, the Company
entered into an Agreement with Mosaic Capital LLC wherein Mosaic will act as the Company’s financial advisor. Contained in
Mosaic’s compensation package is a $30,000 fee payable in cashless warrants. Mosaic is to receive 142,857 warrants convertible
into one (1) share of the Company’s common stock within five years from the date of the Agreement. These warrants were valued
at $0.21 per share which was the value of the Company’s common share on the date of execution of the Agreement. These warrants
were issued on August 1, 2011. Please refer to Note 1 for more on the Mosaic Capital LLC Agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.3in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.3in 0 1in; text-align: justify">On May 25, 2011, the Company issued
to the CFO 1,500,000 common stock purchase warrants, exercisable on a cashless basis for three years at an exercise price of $0.01
per share. These warrants are restricted for six months from the date of issuance. The warrants</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.3in 0 1in; text-align: justify">were issued in consideration for
deferring salary and as a discretionary bonus for 2009 and 2010. The value of these warrants was $239,303 at inception and this
amount will be amortized over the exercise term of three years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The Following is a breakdown
of the warrants:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.6in; text-align: justify"> </p>
<p style="color: Red; font: 9pt Arial, Helvetica, Sans-Serif; margin: 0 0.25in 0 1.6in; text-align: justify"> </p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 6.5in; border-collapse: collapse; font-size: 12pt">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td> </td>
<td style="text-align: center"> </td>
<td> </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center">Warrants</td>
<td> </td>
<td style="text-align: center">Exercise Price</td>
<td> </td>
<td style="text-align: center">Date Issued</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center">Term</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: center"> </td>
<td> </td>
<td style="text-align: center"> </td>
<td> </td>
<td style="text-align: center"> </td>
<td> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center">     190,000</td>
<td> </td>
<td style="text-align: center">$0.40</td>
<td> </td>
<td style="text-align: center">1/24/2011</td>
<td> </td>
<td style="text-align: center"> 5 Years </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: center">       19,000</td>
<td> </td>
<td style="text-align: center">$0.00</td>
<td> </td>
<td style="text-align: center">1/24/2011</td>
<td> </td>
<td style="text-align: center"> 5 Years </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center">  1,500,000</td>
<td> </td>
<td style="text-align: center">$0.01</td>
<td> </td>
<td style="text-align: center">5/25/2011</td>
<td> </td>
<td style="text-align: center"> 3 Years </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: windowtext 0.5pt solid; text-align: center">     142,857</td>
<td> </td>
<td style="text-align: center">$0.01</td>
<td> </td>
<td style="text-align: center">8/1/2011</td>
<td> </td>
<td style="text-align: center"> 5 Years </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center"> </td>
<td> </td>
<td style="text-align: center"> </td>
<td> </td>
<td style="text-align: center"> </td>
<td> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: windowtext 2pt double; text-align: center">  1,851,857</td>
<td> </td>
<td style="text-align: center"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 4- <u>LOAN PAYABLE –
RELATED PARTY </u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The Company had an unsecured,
loan payable in the form of a line of credit with their CEO. The CEO had provided a line of credit up to $200,000 at 4% interest
per annum to the Company to cover various expenses and working capital infusions until the Company can be funded. This loan was
extended from the original due date of December 31, 2009 to December 31, 2010 and the amount was increased from $200,000 to $1,000,000.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><b>This loan has been
extended again to December 31, 2011. The CEO has advanced $1,224,856 from inception through September 30, 2011 and the Company
repaid $924,859 of these advances. The Company converted $754,377 of these advances into shares of common stock on May 11, 2010
</b>at a $1 per share.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The remaining principal under this loan due as of September 30, 2011 is $303,996. $24,702 of interest is
accrued on the loan at September 30, 2011. The CEO converted $200,000 of this note in exchange for 40,000,000 common shares of
the company on December 1, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 5- <u>LOAN PAYABLE –
OTHER </u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company received $215,000
on March 31, 2010 and an additional $35,000 on April 9, 2010 from HE Capital, SA as a loan. These notes accrue interest at 8% annually.
The Company accrued interest of $2,111 on the loans through May 11, 2010. These amounts were converted into shares of common stock
at a $1 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On August 6, 2010, HE Capital,
S.A. loaned the Company $100,000 and loaned the Company an additional $50,000 on September 13, 2010. These loans are for one year
and have an annual interest rate of 8%. The loans were used for operations of the Company during its development stage.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On October 13, 2010, HE Capital,
S.A. loaned the Company $22,500. This loan is for one year and has an annual 8% interest rate. This loan was used to pay fees in
connection with the equipment lease signed with Naranza Capital Partners LLC.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On December 3, 2010, HE Capital
S.A. loaned the Company $170,000. This loan is for one year and has an annual 8% interest rate. This loan was used to pay the first
and last lease payments on the Naranza Capital Partners LLC equipment lease (see Note 10).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On December 3, 2010, HE Capital
S.A. loaned the Company $20,000. This loan is for one year and has an annual 8% interest rate. This loan was used to pay additional
fees on the Naranza Capital Partners LLC equipment lease (see Note 11). An addendum was agreed to by the Company and HE Capital
on February 10, 2011 to increase this loan amount to an incremental amount not to exceed $500,000. The balance of this loan amount
at September 30, 2011 was $480,750. $300,000 of this amount was the cash payment needed in the closing of the Magic Bright Limited
acquisition on March 30, 2011 (see Note 7). The remainder of $180,750 was used in the Company for working capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On May 25, 2011, the Company reduced
its debt to HE Capital S.A. by paying $50,000 in cash received from the sale of 333,333 shares of Common Stock of the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The total balance of notes outstanding
with HE Capital at September 30, 2011 is $823,250. Interest incurred for the nine months ended September 30, 2011 and 2010 was
$39,148 and $1,444, and interest accrued through September 30, 2011 on these HE Capital notes is $48,433. On December 1, 2011
$65,000 of these notes was converted into shares of common stock of the Company. (See Note 15) </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company also entered into
a loan payable with an individual in the amount of $20,000 at 10% due on demand. The Company repaid $10,000 of this note on August
10, 2010. The Company also repaid $2,500 of this note on April 13, 2011. As of September 30, 2011 the loan has an outstanding
balance of $7,500 and accrued interest in the amount of $1,935.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 1in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.2in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.2in 0 1in; text-align: justify">On March 31, 2011, the Company
signed a Promissory Note in the amount of $50,000 from JDS Squared. The note calls for interest in the amount of five percent (5%)
per annum from the date of issue until due on September 30, 2011. The Company has the right to prepay the note with interest anytime
following the issue date of the note. The funds were used for working capital. This note was converted into shares of common stock
of the Company on December 1, 2011. (See Note 15)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On April 12, 2011, the Company
received $53,000 from Asher Enterprises, Inc. in exchange for a Convertible Promissory Note. The note calls for interest in the
amount of eight percent (8%) per annum from the date of issue until due on January 12, 2012. The Company has the right to prepay
the note with interest anytime after sixty (60) days following the issue date of the note. The Company has to issue a prepayment
notice within three (3) trading days prior to the prepayment date. The prepayment amount is one hundred twenty-five percent (125%)
of the principal balance. Asher Enterprises, Ins. has the right to convert the note or any part of the unpaid principal balance
of the note into common shares of the Company anytime after one hundred eighty (180) days following the issue date of the note.
The conversion price is sixty three percent (63%) of the average of the lowest three (3) trading prices for the common stock during
the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The funds were used for
working capital. This note also calls for 808,913 shares of the Company’s common shares to be placed into a reserve account.
On August 23, 2011, the Company received a notice of default on this note from Asher as a result of the Company’s failure
to remain current in its SEC filings. The note remains outstanding and in default as of September 30, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On April 27, 2011, the Company
received $42,500 from Asher Enterprises, Inc. in exchange for a Convertible Promissory Note. The note calls for interest in the
amount of eight percent (8%) per annum from the date of issue until due on January 12, 2012. The Company has the right to prepay
the note with interest anytime after sixty (60) days following the issue date of the note. The Company has to issue a prepayment
notice within three (3) trading days prior to the prepayment date. The prepayment amount is one hundred twenty-five percent (125%)
of the principal balance. Asher Enterprises, Ins. has the right to convert the note or any part of the unpaid principal balance
of the note into common shares of the Company anytime after one hundred eighty (180) days following the issue date of the note.
The conversion price is sixty one percent (61%) of the average of the lowest three (3) trading prices for the common stock during
the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The funds were used for
working capital. This note also calls for 1,865,885 shares of the Company’s common shares to be placed into a reserve account.
On August 23, 2011, the Company received a notice of default on this note from Asher as a result of the Company’s failure
to remain current in its SEC filings. The note remains outstanding and in default as of September 30, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On May 23, 2011, the Company received
$40,000 from Asher Enterprises, Inc. in exchange for a Convertible Promissory Note. The note calls for interest in the amount of
eight percent (8%) per annum from the date of issue until due on February 25, 2012. The Company has the right to prepay the note
with interest anytime after sixty (60) days following the issue date of the note. The Company has to issue a prepayment notice
within three (3) trading days prior to the prepayment date. The prepayment amount is one hundred thirty-five percent (135%) of
the principal balance. Asher Enterprises, Ins. has the right to convert the note or any part of the unpaid principal balance of
the note into common shares of the Company anytime after one hundred eighty (180) days following the issue date of the note. The
conversion price is sixty one percent (61%) of the average of the lowest three (3) trading prices for the common stock during the
ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The funds were used for working
capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">This note also calls for 2,115,283
shares of the Company’s common shares to be placed into a reserve account. On August 23, 2011, the Company received a notice
of default on this note from Asher as a result of the Company’s failure to remain current in its SEC filings. The note remains
outstanding and in default as of September 30, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.2in 0 1in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.2in 0 1in; text-align: justify">On July 7, 2011, the Company signed
a Promissory Note in the amount of $12,000 from Crackerjack Classic LLC. The note calls for interest in the amount of eight percent
(8%) per annum from the date of issue until due on July 8, 2012. The Company has the right to prepay the note with interest anytime
following the issue date of the note. The funds were used for working capital. This note was converted into shares of common stock
of the Company on December 1, 2011. (See Note 15)</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 6- <u>SECURED DEBENTURES</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On January 24, 2011, the Company
entered into a series of securities purchase agreements with accredited investors (the “Investors”), pursuant to which
the Company sold an aggregate of $380,000 in 12% secured debentures (the “Debentures”). Legend Securities, Inc. a broker
dealer which is a member of FINRA, received a commission of $45,600 and 19,000 warrants at an exercise price of $0.40 in connection
with the sale of the Debentures. The Debentures are due at the earlier of 6 months from the date of issuance or upon the Company
receiving gross proceeds from subsequent financings in the aggregate amount of $1,000,000. The Debentures bear interest at the
rate of 12% per annum, payable upon maturity. The Debentures are secured by the assets of the Company pursuant to security agreements
entered into between the Company and the Investors.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On July 21, 2011, the Secured
Debentures were extended an additional six months to a new maturity date of January 24, 2012. Everything concerning the Debentures
remained the same. The Investors will receive an additional 380,000 shares of common stock from the Company for agreeing to the
extension. These shares were valued at $38,000 on July 25, 2011, the first day of the extension. This amount was treated as additional
interest to the investors and was expensed. The extension and modification to the Secured Debentures, did not constitute a material
modification under ASC 470-50. These shares were issued to the Investors on December 7, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company also issued to the
Investors five-year warrants to purchase an aggregate of 190,000 shares of common stock at an exercise price of $0.40, which may
be exercised on a cashless basis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company as of September 30,
2011, raised $380,000 from the investors.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">Interest on these notes for the
nine months ended September 30, 2011 was $34,247 and accrued as of September 30, 2011 (12%) was $36,897.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The $380,000 in proceeds from
the financing transaction was allocated to the debt features and the warrants based upon their fair values. The value of the warrants
($123,120) was recorded as a debt discount on the secured debentures. This discount has been fully amortized as of September 30,
2011..</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The estimated fair value of the
190,000 warrants to the investors at issuance on January 24, 2011 was $141,362 and has been classified as Additional Paid In Capital
- Warrants on the Company’s condensed consolidated balance sheet. The estimated fair value of the warrants was determined
using the Black-Scholes option-pricing model.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On October 22, 2010, the Company
entered into an engagement for an independent introducing agent services with Legend Securities, Inc. (“LSI”) where
in LSI has agreed to introduce investors to the Company in the form of equity and/or debt. In accordance with the agreement, LSI
received 10% of the cash equivalent received by the Company as a fee and 2% of the cash equivalent as an expense allowance. LSI
received as compensation for this agreement, $39,600 in fees and expenses in 2010 and $6,000 on January 21, 2011 as well as 19,000
warrants valued at $18,242.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 7- <u>LOAN PAYABLE –
ACQUISITION </u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">As part of the acquisition of
Magic Bright on March 30, 2011, the Company agreed to pay $1,000,000 in cash and $5,000,000 in the form of 1,000,000 preferred
shares. At closing , the Company paid $300,000. They agreed to a payment schedule of $300,000 due on June 16, 2011; $200,000 on
September 16, 2011; and $200,000 on December 16, 2011. The remaining $700,000 is non-interest bearing note. As a result of the
cancellation of the contract between the Company and Magic Bright, effective April 1, 2011, the remaining amount of $700,000 was
forgiven in return of Magic Bright’s stock. (See Note 14)</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 1in; text-align: justify; text-indent: -1in">NOTE
8- <u>LOAN PAYBALE - BANK </u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company incurred in its acquisition
of Magic Bright Limited on March 30, 2011 a bank debt to DBS Bank Limited of Hong Kong in the amount of $1,453,307 at an interest
rate of .75 % above the Hong Kong prime rate. The note was set to mature on November 18, 2015. Due to the cancelation of the agreement
between the Company and Magic Bright, the notes became the responsibility of Magic Bright and not the Company when the stock transferred
back to the Magic Bright shareholders. (See Note 14)</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 1in; text-align: justify; text-indent: -1in">NOTE
9- <u>PROVISION FOR INCOME TAXES </u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Deferred income taxes are determined
using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s
assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences
are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future
tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective
tax bases.</p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 1in; text-align: justify; text-indent: -1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">As of September 30, 2011, there
is no provision for income taxes, current or deferred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1.4in; text-align: justify"> </p>
<p style="color: Red; font: 9pt Arial, Helvetica, Sans-Serif; margin: 0 0.25in 6pt 1.4in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="width: 6.5in; font-size: 10pt">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 54%; text-align: left">Net operating losses</td>
<td style="width: 46%; text-align: right">$2,183,615</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; border-bottom: Black 1pt solid">Valuation allowance</td>
<td style="border-bottom: Black 1pt solid; text-align: right">(2,183,615)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 2.5pt solid"> </td>
<td style="border-bottom: Black 2.5pt solid; text-align: right">                                      $              -</td></tr>
</table>
<p style="color: Red; font: 9pt Arial, Helvetica, Sans-Serif; margin: 0 0.25in 6pt 1.4in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">At September 30, 2011, the Company
had a net operating loss carry forward in the amount of $6,422,397, available to offset future taxable income through 2031. The
Company established valuation allowances equal to the full amount of the deferred tax assets due to the uncertainty of the utilization
of the operating losses in future periods.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">A reconciliation of the Company’s
effective tax rate as a percentage of income before taxes and federal statutory rate for the periods ended September 30, 2011 and
2010 is summarized below.</p>
<table cellpadding="0" cellspacing="0" align="center" style="width: 6.5in; border-collapse: collapse; font-size: 12pt">
<tr>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: top">
<td style="width: 61%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 22%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 17%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif">Federal statutory rate</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font: 10pt Times New Roman, Times, Serif">(34.0)%</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif">State income taxes, net of federal benefits</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font: 10pt Times New Roman, Times, Serif">0.0</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif">Valuation allowance</td>
<td style="border-bottom: windowtext 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">34.0</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font: 10pt Times New Roman, Times, Serif">0%</td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">NOTE 10- <u>FAIR VALUE MEASUREMENTS </u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The Company adopted certain
provisions of ASC Topic 820. ASC 820 defines fair value, provides a consistent framework for measuring fair value under generally
accepted accounting principles and expands fair value financial statement disclosure requirements. ASC 820’s valuation techniques
are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while
unobservable inputs reflect our market assumptions. ASC 820 classifies these inputs into the following hierarchy:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Level 1 inputs: Quoted prices
for identical instruments in active markets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Level 2 inputs: Quoted prices
for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and
model-derived valuations whose inputs are observable or whose significant value drivers are observable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Level 3 inputs: Instruments
with primarily unobservable value drivers.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 11- <u>COMMITMENTS </u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><b><u>Agilyx Agreements</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On December 12, 2009, Green
EnviroTech entered into an (i) equipment purchase and installation agreement (the “Purchase Agreement”) with Agilyx
(formally Plas2Fuel) Corporation (“Agilyx (formally Plas2Fuel)”), (ii) oil marketing and distribution agreement with
Agilyx (formally Plas2Fuel) (the “Oil Marketing Agreement”), and (iii) license agreement with Agilyx (formally Plas2Fuel)
(the “License Agreement”). Plas2Fuel Corporation changed its name to Agilyx Corporation effective June 8, 2010. All
agreements and contracts negotiated as Plas2Fuel Corporation are still in full force and will be honored by Agilyx Corporation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Pursuant to the Purchase Agreement,
Green EnviroTech agreed to purchase, and Agilyx (formally Plas2Fuel) agreed to sell and install, a twelve vessel waste plastic
to oil recycling system <font style="color: black">(the “System”), for a purchase price of $5,595,645. Green EnviroTech
agreed to pay the purchase price over five installments. On December 31, 2009, Agilyx (formally Plas2Fuel) issued a waiver to Green
EnviroTech leaving it to the discretion of Green EnviroTech to implement the first installment due date before the equipment would
be shipped. As of September 30, 2011, the first installment date had not been determined.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; color: black">Pursuant
to the Oil Marketing Agreement, Green EnviroTech agreed to provide to Agilyx (formally Plas2Fuel), on an exclusive basis, the </font>crude
oil generated by the System, meeting the specifications set forth in the Oil Marketing Agreement, and Agilyx (formally Plas2Fuel)
agreed to broker the oil for sale to third parties, for a commission of 10%. The Oil Marketing Agreement has a term of five years
commencing on December 12, 2009, which will renew automatically for successive one year terms unless either party provides written
notice at least 90 days prior to such renewal.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Pursuant to the License Agreement,
Agilyx (formally Plas2Fuel) agreed to grant Green EnviroTech a limited license to use Agilyx (formally Plas2Fuel)’s proprietary
technology and information in connection with operation of the System at Green EnviroTech’s facilities, for a license fee
of 10% of <font style="color: black">Net Oil Revenue. On May 18, 2010, the License Agreement was amended to give Green EnviroTech
an exclusive provisional right to the Auto Shredder Residue (“ASR”) market within North America. The right expires on
January 1, 2021. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Agilyx (formally Plas2Fuel)
excluded producers they are servicing on Exhibit A which indicated “none”. The exclusive right is contingent upon the
Company purchasing from Agilyx (formally Plas2Fuel) and paying in full for Plastic Reclamation Units on a prearranged schedule
as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8in 0 1.5in; text-align: justify; text-indent: -0.25in">a)      
Twelve (12) Plastic Reclamation Units (“<b><i>PRU’s</i></b>”) between January 1, 2010 and December 31, 2010;
(as of September 30, 2011 no Units had been ordered. Even though no units have been ordered as set forth in the agreement, Agilyx
still recognizes the Company as having exclusive rights with no liability to Agilyx until the first order. It has not been determined
when the Company expects to place the first order.)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.25in">b)      
Twenty (20) PRU’s between January 1, 2011 and December 31, 2011; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.25in">c)      
Forty (40) PRU’s between January 1, 2012 and December 31, 2012; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.25in">d)      
Forty (40) PRU’s between January 1, 2013 and December 31, 2013; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.25in">e)      
Forty (40) PRU’s between January 1, 2014 and December 31, 2014; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.25in">f)       
Forty (40) PRU’s between January 1, 2015 and December 31, 2015; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.25in">g)      
Forty (40) PRU’s between January 1, 2016 and December 31, 2016; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.25in">h)      
Forty (40) PRU’s between January 1, 2017 and December 31, 2017; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.25in">i)        
Forty (40) PRU’s between January 1, 2018 and December 31, 2018; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.25in">j)       
Forty (40) PRU’s between January 1, 2019 and December 31, 2019; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.25in">k)      
Forty (40) PRU’s between January 1, 2020 and December 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><b><u>Wisconsin Site</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company had previously announced
it was exploring the idea of opening a plant in Fond du Lac, Wisconsin. However, the decision has now been decided to locate the
plant in another city in Wisconsin. There were no incentives offered by Fond du Lac other than to offer to sale land suitable for
plant construction when no building for lease was found suitable for the Company’s needs. The Industrial Park location appeared
to be suitable and the Company started design work on the location. The site called for a rail spur which was turned down by the
railroad for lack of enough space to meet their requirements. The Company looked elsewhere and decided to direct its efforts to
Sheboygan where the city has offered incentives and the city has commercial building space available suitable for the needs of
the plant. The area also has a pool of experienced work force available to compliment the employee requirements needed for the
plant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company received on September
23, 2010 an Incentive Offer from the City of Sheboygan laying out its proposal of incentives for the Company to consider locating
its plant in Sheboygan. Sheboygan offered a low-interest loan in the amount of $400,000 to be used for equipment, working capital,
or training purposes from its Business Development Loan Program. The city offered to sponsor a bond resolution for the Industrial
Revenue Bonds which can be used for funding of a large portion of the project. The city will sponsor and prepare the grant application
for a Transportation Economic Assistance Grant for assistance of up to 50% of the costs of a railroad spur if the Company qualifies.
The city is working with a Bay-Area Workforce Development Board in conjunction with a Technical College who are proposing a $100,000
grant for training associated with start-up of the new building and equipment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The city spoke to Alliant Energy
who offers a Shared Savings program that is available if the efficiency levels of our equipment, meets their energy savings. This
could equate to 2% money toward a five year loan. The city reports there are energy efficiency incentives from the Wisconsin Public
Service as well.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">In January of 2011, the State
of Wisconsin Investment Board indicated its interest to commit $5 million in a low interest loan to the Company for the purchase
of a building in Sheboygan, Wisconsin to be used for the Sheboygan Plant. As of September 30, 2011, the Company had not received
a letter of commitment for financial assistance from the State of Wisconsin</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-weight: bold; margin-top: 0; margin-bottom: 12pt; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0"> </td>
<td style="width: 1in"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-decoration: underline">Employment Agreements</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company executed on
February 19, 2010 employment contracts for the hire of its Chief Executive Officer for a term of 36 months with one year automatic
extensions and its President and Chief Technology Officer for a term of 12 months with one year automatic extensions. Each contract
provided for base and incentive salary as well as carried a ten year stock option incentive for the purchase of up to 200,000
of the Company’s common shares at the exercise price of $0.30 which was the closing price of the Company’s common
stock on the OTCBB on February 18, 2010. These shares were to vest in 66,667 amounts on each of November 1, 2010 and 2011 and
66,666 on November 1, 2012, assuming the Executive was employed by the Company on such vesting dates. The employment agreements
were terminated on October 1, 2010. The employment agreements were terminated until the Company can raise funds. Once the appropriate
funds have been raised, the Company will enter into new employment agreements with senior management. Any amounts that were accrued
as salary for these individuals was reversed and no stock options were issued. </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On August 9, 2010, the Chief Technology Officer
with consent of the Company resigned his position with the Company as its CTO in order to work as a consultant to the Company
for Ergonomy, LLC, a company the CTO helped form and is already an officer. The Company has a long standing contract with Ergonomy
to use its technology.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On January 25, 2011, Jeffrey
Chartier resigned as President and as a director of Green EnviroTech Holdings Corp. (the “Company”). In connection
with Mr. Chartier’s resignation, the Company and Mr. Chartier entered into a separation agreement pursuant to which he agreed
to a six month lock-up of the 4,495,680 shares of the Company’s common stock he owns (the “JC Shares”), and subsequent
“leak-out” selling of no more than 1% of the Company’s issued and outstanding shares of common stock in any 90
day period, in consideration for which the Company agreed to issue Mr. Charter 50,000 shares of common stock (the “LL Transfer
Shares”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Mr. Chartier relinquished voting
rights to his 4,495,680 shares of common stock, giving Gary DeLaurentiis (the Company’s Chief Executive Officer and Chairman)
the proxy to vote such shares, in consideration for which the Company agreed to issue Mr. Chartier 25,000 shares of common stock
(the “Proxy Transfer Shares”). Mr. Chartier provided the Company a right of first refusal on any proposed sale of the
JC Shares, LL Transfer Shares, Proxy Transfer Shares, and an additional 25,000 shares the Company agreed to issue to Mr. Chartier
as partial reimbursement for $30,000 of outstanding expenses. The Company agreed to issueand/or caused the transfer of an additional
50,000 shares of common stock for Mr. Chartier as severance. Mr. Chartier provided a general release.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On January 27, 2011, Wayne Leggett
was elected to the Board of Directors of the Company, and Lou Perches was appointed Chief Operating Officer of the Company. Mr.
Leggett has been the Company’s Chief Financial Officer since March 2010. Mr. Perches will receive a salary of $7,500 per
month for six months during which he will devote 100% of his business time to the Company. The Company currently uses Mr. Perches
on an as needed basis and accrues any compensation to him that is unpaid.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><b><u>Lease Agreements - Riverbank</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On September 1, 2010, the Company
signed a five year lease for office space and opened its Riverbank, California offices and changed its corporate offices to California.
The office is staffed by the CEO and three office personnel. The office space is approximately 1,100 sq ft. The lease calls for
lease payments in the amount of $600 per month the first year, $618 per month the 2<sup>nd</sup> year, $637 per month the 3<sup>rd</sup>
year, $656 per month the 4<sup>th</sup> year and $675 per month the 5<sup>th</sup> year. The Company asked to be let out of the
lease, which was granted and moved out of the Riverbank location on November 16, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On December 1, 2010, the Company
signed a five year lease for plant space in Riverbank, California in anticipation of opening its Riverbank Plant. The plant space
is approximately 37,800 sq ft. The lease calls for lease payments in the amount of $1,900 per month the first 6 months, $10,584
for the next 6 months, $10,902 per month the 2<sup>nd</sup> year, $11,229 per month the 3<sup>rd </sup>year, $11,565 per month
the 4<sup>th</sup> year and $11,912 per month the 5<sup>th</sup> year. The Company asked to be let out of this lease, which was
granted on November 16, 2011.On December 1, 2010, the Company signed a six month lease for 5,175 sq. ft. of space in Riverbank,
California to store non-hazardous plastic material that is covered.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The lease calls for lease payments
in the amount of $518 per month. The Company asked to be let out of this lease, which was granted on November 16, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><b><u>Capital Lease – Riverbank
</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On September 24, 2010, the Company
received a “term sheet” from Naranza Capital Partners for the lease purchase of $5,000,000 of equipment to be placed
in the Riverbank facility. On November 23, 2010, the Company signed an Equipment Lease Agreement with Naranza Capital Partners
for the lease of the equipment needed in the Riverbank Plant. This Capital Lease also included the installation of this equipment
and has a $1 (one dollar) buyout clause. The term of the lease is for five years (60 months) starting from the date the equipment
is operational. The Company paid an application fee of $12,500 plus the first and last month’s lease payments in the amount
of $128,945 each. The Company also paid $10,000 doc fees, site visit fee and legal fees. As of December 31, 2010, the equipment
had not been ordered for shipment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The plant will produce sweet crude
oil using the Agilyx technology. The material to be used in the technology is from an agricultural waste plastic stream, the Company
will obtain at no cost to the Company. The transportation of the waste plastic to the plant is the only cost.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company has also received
draft approval documents from the Air Resource Board with authority to proceed with the development of the plant. This is the first
license of its kind to be issued in California for construction of a facility to use this technology.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company will recognize the
assets and the obligation under the capital lease at the time that Naranza Capital Partners honors the commitment and places the
order of the equipment and installs the equipment. The deposits are recognized as non-current assets on the Company’s consolidated
balance sheets at September 30, 2011. As of September 30, 2011, the equipment had not been ordered for shipment. On April 1, 2011,
a Demand Letter was sent to Naranza Capital Partners for the return of the Company’s deposit.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">Naranza Capital Partners have
not returned the deposit as of September 30, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><b><u>Riverbank Site</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On October 4, 2010, the Company
received a letter from the City of Riverbank’s Local Redevelopment Authority (LRA) outlining its support and enthusiasm for
the Company’s decision to proceed with the development of a plant facility in Riverbank and for opening its corporate offices
in their city. To show their commitment to the Company’s success in Riverbank, the LRA is preparing the Community Development
Block Grant (CDBG) Over-The-Counter (OTC) Grant Application in support of the Company. The Grant provides for the creation and
retention of jobs. The funds are awarded at a rate of $35,000 per estimated new job created.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The LRA is working with the granting
agency and the State’s Department of Housing & Community Development, to provide $5 million in funds over the next two
years for site infrastructure improvements, business working capital, job training and equipment in the form of both grants and
loans. In addition, the LRA is prepared to offer the Company in-kind contributions totaling $2,000,000 to support the project,
including staff support, building improvements, local building and processing fees, electrical upgrades, rail improvements and
infrastructure upgrades.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company appreciates the support
the community of Riverbank is providing. Before the close of the year, the City of Riverbank notified the Company that it had received
instruction from the State of California’s Economic Development panel providing funds to the City of Riverbank for the use
of the Company that it was unable to provide such funds presently.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; color: black">On
October 8, 2010 the Company received a Letter of Intent from </font>Ravago Manufacturing Americas<font style="color: black"> for
joint activities with the Company. Ravago has</font> experience as an engineering resin custom compounder, toll and producer services
provider, and world class recycler of both engineering polymers and basic commodity plastics has made them one of America's leading
resins suppliers. Their broad product portfolio and unique manufacturing assets allow for versatility beyond compare. Ravago has
facilities strategically located to serve both the producer and end user, with activities in the Midwest, Southeast, and Gulf Coast
regions. In the Ravago Letter of Intent, Ravago will install and operate manufacturing equipment in Green EnviroTech’s facilities
to produce compounded plastic products. Ravago will provide all materials needed to make the compound to specification. The Company
will purchase virgin plastic material from another division of Ravago, H. Muehlstein. This virgin material will be mixed with the
reclaimed plastic to make compound plastic to specification.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company will pay Ravago $0.15
per pound for the compound produced. Ravago, with its worldwide customer list, will take 100% of the compounded material produced
at the Company facilities and market the material for a 10% commission thru its division ENTEC.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">This Letter of Intent from Ravago
has the potential to save the Company millions of dollars for the purchase of compounding equipment, operations and maintenance
of the equipment as well as provides the Company a Sales and Marketing Department. The Letter of Intent, if executed will make
Ravago the Company’s only customer for its compound material. The Company met with executives of Ravago on February 23, 2011
and negotiated the final agreement between Ravago and the Company. The Company has not executed the agreement by September 30,
2011.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 12- <u>ACQUISITION</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><b><u>Magic Bright Transaction</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On February 14, 2011, the Company
entered into a securities purchase agreement with Magic Bright. Pursuant to the Purchase Agreement, the Company agreed to purchase,
and the Stockholders (Sellers) of Magic Bright agreed to sell, all of the issued shares of Magic Bright (the “Ordinary Shares”),
subject to the terms and conditions therein. Company agreed to pay to the Sellers, in consideration for the Ordinary Shares, an
aggregate purchase price of $6,000,000, consisting of $1,000,000 in cash (the “Cash Consideration”) and $5,000,000
in securities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Cash Consideration was payable
as follows: (i) $300,000 on the closing date; (ii) $300,000 on June 16, 2011; (iii) $200,000 on September 16, 2011; and (iv) $200,000
on December 16, 2011. The $5,000,000 in securities was in the form of 1,000,000 shares of Magic Bright Acquisition Series Convertible
Preferred Stock (with a stated value of $5.00 per share), which the Company shall issue to the Sellers on the closing date. The
Company agreed to use its reasonable best efforts to obtain at least $3,000,000 in net proceeds from financings and allocate such
net proceeds towards the business and operations of Magic Bright by way of interest free loans from the Company to Magic Bright
within the period of 15 months from the closing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The Company acquired the following
assets and assumed the following liabilities in the acquisition of Magic Bright:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="color: Red; font: 9pt Arial, Helvetica, Sans-Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="width: 6.5in; font-size: 10pt">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%">Cash</td>
<td style="width: 30%; text-align: right">$54,378</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Accounts Receivable</td>
<td style="text-align: right">367,038</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Inventory</td>
<td style="text-align: right">1,293,118</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Prepaid expenses and other assets</td>
<td style="text-align: right">378,504</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Fixed Assets</td>
<td style="text-align: right">1,739,560</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Accounts payable and accrued expenses</td>
<td style="text-align: right">(1,410,137)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Deferred tax liablility</td>
<td style="text-align: right">(13,923)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; border-bottom: Black 1pt solid">Long-term bank debt</td>
<td style="border-bottom: Black 1pt solid; text-align: right">(1,452,035)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; border-bottom: Black 2.5pt solid">Total assets and liabilities acquired</td>
<td style="border-bottom: Black 2.5pt solid; text-align: right">$956,503</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; border-bottom: Black 2.5pt solid">Consideration paid for acquisition of Magic Bright</td>
<td style="border-bottom: Black 2.5pt solid; text-align: right">$6,104,880</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 2.5pt solid">Value of Goodwill</td>
<td style="border-bottom: Black 2.5pt solid; text-align: right">$5,148,377</td></tr>
</table>
<p style="color: Red; font: 9pt Arial, Helvetica, Sans-Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">If the Company (i) does not obtain
and allocate at least $2,000,000 of such net proceeds towards the business and operations of Magic Bright by way of interest free
loans from the Company to Magic Bright on or before the date falling on the expiry of 12 months from the closing or (ii) does not
obtain and allocate at least $3,000,000 in aggregate of such net proceeds towards the business and operations of Magic Bright by
way of interest free loans from the Company to Magic Bright on or before the date falling on the expiry of 15 months from the closing
or (iii) fails to pay all of the Cash Consideration by December 16, 2011, each Seller shall have the option to re-purchase the
Ordinary Shares sold by such Seller to the Company, in exchange for the Preferred Shares issued by the Company to such Seller.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Three years from the closing,
each Seller will have a one-time ninety (90) day option (“Buy Back Option”) to purchase back 50.1% of the  Ordinary
Shares sold by such Seller to the Company, in exchange for the 50% of the Preferred Shares issued by the Company to such Seller
(or the fair market equivalent in cash of such shares). The Company agreed, on or prior to closing, to (i) have the Seller Wong
Kwok Wing, Tony (“Tony”), appointed to the Company’s board of directors, (ii) enter into an employment agreement
with Tony in form and substance satisfactory to Tony, and (iii) issue an aggregate of 184,000 shares of common stock to employees
of Magic Bright. These shares were issued on March 31, 2011 and were valued at $0.57 per share to reflect the price of the stock
on that day. These shares were valued in total at $104,880 in which this amount was added to the $6,000,000 approved purchase
price bringing the total purchase price to $6,104,880 as reflected above in the Goodwill calculation. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On March 16, 2011, the Company
entered into Amendment No. 1 to Securities Purchase Agreement, dated as of February 14, 2011, among the Company, Magic Bright Limited,
a Hong Kong corporation and the members of Magic Bright. Pursuant to the Amendment, the deadline for the closing of the acquisition
by the Company of the issued shares of Magic Bright under the Purchase Agreement was extended from March 16, to March 25, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On March 25, 2011, the Company
entered into Amendment No. 2 to Securities Purchase Agreement, dated as of February 14, 2011, among the Company, Magic Bright Limited,
a Hong Kong corporation and the members of Magic Bright. Pursuant to the Amendment, the deadline for the closing of the acquisition
by the Company of the issued shares of Magic Bright under the Purchase Agreement was extended from March 25, to March 30, 2011.
Magic Bright Limited officially became a subsidiary of the Company on March 30, 2011 when the transaction closed.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 1in; text-align: justify"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.25in 12pt 1in; text-align: justify">During the quarter
ended June 30, 2011, and thereafter, the Company was unable to receive from Magic Bright their financial records and support for
the transactions as a result of the failure to make the first required note payment. The parties mutually agreed that due to the
failure of the Company to be properly funded and make the required note payments as stipulated in the purchase agreement, that
effective April 1, 2011, the agreement would be terminated.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.25in 12pt 1in; text-align: justify">As a result of this termination, the Company returned the stock of
Magic Bright to the original shareholders, and Magic Bright shareholders forgave the remaining $700,000 owed by the Company as
consideration for the acquisition and returned to the Company, the 1,000,000 shares of convertible preferred stock that were issued
in the agreement. The Company agreed that the initial $300,000 paid by the Company as cash consideration for the acquisition would
be retained by the sellers and agreed to let the Magic Bright shareholders keep the 184,000 shares of common stock issued to them
on March 31, 2011. (See Note 14).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 1in; text-align: justify"></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 13- <u>INVESTMENT AGREEMENT</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><b><u>Centurion Private Equity,
LLC Agreement</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">On April 8, 2011, Green EnviroTech
Holdings Corp. (the “Company”) entered into an investment agreement with Centurion Private Equity, LLC (“Centurion”).
Pursuant to the Investment Agreement, Centurion agreed to purchase from the Company, from time to time in the Company’s
sole discretion (subject to the conditions set forth therein), for a period of up to 24 months commencing on the effective date
of the registration statement to be filed by the Company for resale of the shares of common stock issuable under the Investment
Agreement, but in no event extending beyond the date that is 30 months from April 8, 2011,up to $5,000,000 in the Company’s
common stock.<b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 67.5pt; text-align: justify">The Company issued to Centurion
290,641 shares of common stock as a commitment fee and 31,250 shares of common stock as a due diligence/legal and administrative
fee.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 67.5pt; text-align: justify">Pursuant to a registration
rights agreement between the Company and Centurion entered into</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 67.5pt; text-align: justify">in connection with the Investment
Agreement, the Company agreed to file a registration statement for the resale of not less than the maximum number of shares of
common stock allowable pursuant to Rule 415 under the Securities Act of 1933, as amended, issuable under the Investment Agreement
(including the Commitment Shares and the Fee Shares), within 60 days of execution of the Investment Agreement, and to have such
registration statement declared effective by the Securities and Exchange Commission (the “SEC”) within 120 days of
execution of the Investment Agreement (or 150 days if such registration statement is reviewed by the SEC).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 74%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 26%; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr>
<td colspan="2">
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"><b><u>Centurion Private Equity,
LLC Agreement</u> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The purchase price for the shares
of common stock sold under the Investment Agreement will be equal to the lesser of (i) 97% of the “Market Price” for
such Put, defined as average of the lowest 3 daily volume weighted average prices for the 15 trading days immediately following
the “Put Date” date specified by the Company in any “Put Notice” in which the Company is deemed to provide
notice of a sale of common stock under the Investment Agreement or (ii) the Market Price for such Put minus $0.01, but shall in
no event be less than the Company Designated Minimum Put Share Price (as defined in the Investment Agreement) for such Put.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The maximum amount of common stock
that Centurion shall be obligated to purchase with respect to any single closing under the Investment Agreement will be the lesser
of (i) 2,000,000 shares, (ii) 15% of the sum of the aggregate daily reported trading volume in the Company’s common stock
for all Evaluation Days (as defined in the Investment Agreement) in the Pricing Period (as defined in the Investment Agreement),
excluding any block trades that exceed 20,000 shares of common stock, (iii) the number of Put Shares (as defined in the Investment
Agreement) which, when multiplied by their respective Put Share Prices (as defined in the Investment Agreement), equals the Maximum
Put Dollar Amount (as defined in the Investment Agreement), and (iv) such amount which would cause Centurion’s beneficial
ownership of the Company’s common stock to exceed 4.9%.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">In connection with the foregoing,
the Company relied upon the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended, for
transactions not involving a public offering. This information was included in the 8-K filed on April 14, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On July 8, 2011, the Company filed
an S-1 Registration Statement registering securities for the benefit of the Centurion Agreement was filed with the SEC. However,
on July 22, 2011, the Company withdrew the registration statement.</p></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 14- <u>DISPOSITION OF MAGIC
BRIGHT</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On March 5, 2012, Green EnviroTech
Holdings Corp. (the “Company”) entered into a letter agreement (the “Letter Agreement”) with Magic Bright
Limited (“Magic Bright”), Wong Kwok Wing Tony (“Tony”), and Chan Sau Fong (collectively with Tony,
the “Sellers”). Pursuant to the Letter Agreement, the parties agreed as a result of the failure by the Company to pay
$700,000 in Cash Consideration (as defined in the Purchase Agreement) of the aggregate $1,000,000 Cash Consideration payable by
the Company under the Purchase Agreement, dated February 14, 2012, among the Company, Magic Bright, and the Sellers, as amended
by Amendment No. 1 and Amendment No.2 thereto, dated March 16, 2011 and March 25, 2011, respectively (as amended, the “Purchase
Agreement”), including $300,000 of Cash Consideration due on June 16, 2011, $200,000 of Cash Consideration due on September
16, 2011, and $200,000 of Cash Consideration due on December 16, 2011, the Company was unable to obtain requisite financial
statements relating to Magic Bright for periods subsequent to April 1, 2011 (the “Termination Effective Date”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">As a result of the failure to
obtain requisite financial statements for Magic Bright, the Purchase Agreement was terminated, such termination to be deemed effective
as of the Termination Effective Date. The Magic Bright Acquisition Shares (as defined in the Purchase Agreement) will be deemed
to have been returned to the Company and cancelled effective as of the Termination Effective Date. The Ordinary Shares (as defined
in the Purchase Agreement) will be deemed to have been returned to the Sellers effective as of the Termination Effective Date.
The Sellers may retain the $300,000 of Cash Consideration paid by the Company. The Employment Agreement between the Company and
Tony was terminated, such termination to be deemed effective as of the Termination Effective Date. Tony resigned as a director
of the Company, effective March 5, 2012. The parties provided mutual general releases.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">As a result of this transaction,
the Company’s financial statements have been prepared with the results of operations and cash flows of the disposition of
Magic Bright Limited shown as discontinued operations. All historical statements have been restated in accordance with GAAP.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in"> </p>
<p style="margin: 6pt 0 12pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in">The following are the operating results included in
discontinued operations for the nine and three months ended:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.7in"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="width: 6.5in; font-size: 10pt">
<tr style="vertical-align: bottom">
<td colspan="5" style="font-weight: bold; text-align: center">GREEN ENVIROTECH HOLDINGS CORP.</td></tr>
<tr style="vertical-align: bottom">
<td colspan="5" style="font-weight: bold; text-align: center">(FORMERLY WOLFE CREEK MINING, INC.)</td></tr>
<tr style="vertical-align: bottom">
<td colspan="5" style="font-weight: bold; text-align: center">(A DEVELOPMENT STAGE COMPANY)</td></tr>
<tr style="vertical-align: bottom">
<td colspan="5" style="font-weight: bold; text-align: center">CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND</td></tr>
<tr style="vertical-align: bottom">
<td colspan="5" style="font-weight: bold; text-align: center">COMPREHENSIVE LOSS (UNAUDITED)</td></tr>
<tr style="vertical-align: bottom">
<td colspan="5" style="font-weight: bold; text-align: center">FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010 AND</td></tr>
<tr style="vertical-align: bottom">
<td colspan="5" style="font-weight: bold; text-align: center">FOR THE PERIOD OCTOBER 6, 2008 (INCEPTION) THROUGH MARCH 31, 2011</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: center">IN US$</td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: center">OCTOBER 6, 2008</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center">(INCEPTION)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="font-weight: bold; text-align: center">NINE MONTHS</td>
<td style="font-weight: bold; text-align: center">THREE MONTHS</td>
<td style="font-weight: bold; text-align: center">THROUGH</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">SEPTEMBER 30, 2011</td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">SEPTEMBER 30, 2011</td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">MARCH 31, 2011</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold">REVENUE</td>
<td style="text-align: center">$32,555</td>
<td style="text-align: center">$-</td>
<td style="text-align: center">$32,555</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; border-bottom: Black 1pt solid">COST OF REVENUES</td>
<td style="border-bottom: Black 1pt solid; text-align: center">8,197</td>
<td style="border-bottom: Black 1pt solid; text-align: center">-</td>
<td style="border-bottom: Black 1pt solid; text-align: center">13,499</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid">GROSS PROFIT</td>
<td style="border-bottom: Black 1pt solid; text-align: center">24,358</td>
<td style="border-bottom: Black 1pt solid; text-align: center">-</td>
<td style="border-bottom: Black 1pt solid; text-align: center">19,056</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left">OPERATING EXPENSES</td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; border-bottom: Black 1pt solid">   General and administrative</td>
<td style="border-bottom: Black 1pt solid; text-align: center">172</td>
<td style="border-bottom: Black 1pt solid; text-align: center">-</td>
<td style="border-bottom: Black 1pt solid; text-align: center">453,812</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; padding-left: 10pt">Total operating expenses</td>
<td style="border-bottom: Black 1pt solid; text-align: center">172</td>
<td style="border-bottom: Black 1pt solid; text-align: center">-</td>
<td style="border-bottom: Black 1pt solid; text-align: center">453,812</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left; border-bottom: Black 2.5pt solid">Net Income from operations</td>
<td style="border-bottom: Black 2.5pt solid; text-align: center">$24,186</td>
<td style="border-bottom: Black 2.5pt solid; text-align: center">$-</td>
<td style="border-bottom: Black 2.5pt solid; text-align: center"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.7in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The impact on the Company’s
balance sheet due to the disposition of Magic Bright Limited was as follows: The Company reduced its Assets by a total of $9,028,265
the Company reduced its Liabilities by $3,598,362 and the Company decreased its Shareholder equity by $5,000,000.  For the
nine months ended September 30, 2011, the transaction had the following impact on the Company’s statement of operations:
The Company increased its Expenses by $429,066 as a result of the loss created from writing off its investment in Magic Bright
Limited when the Company discontinued its operations. The Company also decreased its net loss by $24,186 as a result of recognizing
one day of net income from the discontinued operations of Magic Bright.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 15- <u>SUBSEQUENT EVENTS</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On October 4, 2011 and on October
6, 2011, the Company entered into twelve month agreements with two separate Investment Relations firms to provide advisory and
consulting services to the Company in conjunction with the development of the Company’s marketing plan, business plan and
goals. The Company will be responsible for all reasonable costs and necessary expenses incurred by consultants. The Consultants,
Stocks That Move will receive 2,000,000 shares of common stock of the Company and Seven Royal Angels, Ltd will receive 1,000,000
shares of common stock of the Company for their services. These shares were issued on December 7, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On November 16, 2011, the Company
asked the City of Riverbank to let it out of the three leases with the City the Company had entered into in anticipation of opening
the Riverbank plant. The City of Riverbank granted the release and the Company moved out of the Riverbank location. The Company
located its offices temporarily at 14699 Holman Mountain Road, Jamestown, CA until a new location can be determined.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On December 1, 2011, the Company
authorized the acceptance of the Debt Settlement Agreements dated December 1, 2011 between the Company and certain officers and
creditors of the Company. The agreements called for the issue of Common Shares to settle debt. On December 1, 2011, Common Shares
of the Company were selling for $0.005 per share and was agreed as the conversion price. On December 7, 2011, 105,380,000 shares
of Common Stock were issued to settle $526,900 of debt. The Company issued 40,000,000 shares to the CEO of the Company to reduce
$200,000 of the note due him and issued 16,000,000 shares to the CFO to reduce $80,000 in accrued salary due him. The Company also
issued 49,380,000 shares for services rendered and additional debt conversion amounting to $246,900.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On December 15, 2011, the Company’s
wholly-owned subsidiary, Green EnviroTech Riverbank, Inc. (“GETRB”) entered into an asset purchase agreement pursuant
to which GETRB sold its inventory and permits to a third party. GETRB’s remaining assets and liabilities were transferred
to the Company and GETRB was dissolved on December 31, 2011. The Company has decided to maintain its contract with Agilyx Corporation
for the purchase of its equipment and has decided to look for a more favorable location in California or surrounding states. The
inventory and permits were sold for $250,000. $175,000 was used for working capital and $75,000 was used to repay debt.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On February 2, 2012, the Company
considered the form terms and provisions of the proposed Addendum to Secured Debentures pursuant to which the Company shall issue
1,000,000 shares of common stock and the maturity date of the debentures referred to shall be extended to September 24, 2012, are
approved in all respects; and such shares, when issued, will be duly issued, fully paid and non assessable, and the Company’s
Authorized Officers and each</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">of them hereby is authorized to
execute and deliver in the name and on behalf of the Company the Addendum. The Company by direction of Legend Securities, Inc.
shall also issue to the holders of the Secured Debentures five-year warrants to purchase 100,000 shares of common stock at an exercise
price of $0.10 per share which said warrants were originally issued to certain employees of Legend Securities, Inc. per a previous
Legend Agreement. The warrants will be issued to the holders of the Secured Debentures simultaneously with the issuance of the
above mentioned stock.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On February 6, 2012, the Company
an<font style="color: black">nounced the signing of a letter of intent </font>for the creation of a Joint Venture (JV) between
GETH and ACG Consulting, LLC (ACG), a division of ACG Companies of Irvine, California. <font style="color: black">The non-binding
LOI contemplates that </font>GETH and ACG will enter into a JV agreement forming Limited Liability Companies (LLC) for the purpose
of owning and developing Shredder Residue (SR) Recycling Plants in the United States. Each Recycling Plant will be organized as
a wholly owned subsidiary of the JV. ACG has specialized expertise in the employment based EB-5 Visa Program administered by the
United States Citizenship and Immigration Services (“USCIS”) under the Immigration Act of 1990 (http://1.usa.gov/EB5Program
). The EB-5 program provides a legal vehicle for raising funds via a securities subscription agreement with foreign nationals which
are offered and sold only to persons who are not citizens of the United States and who are physically located outside the United
States in reliance upon Regulation S (“Regulation S”) under the Securities Act of 1933, as amended (purchasers of securities
by foreign investors are not purchasing equity in GETH but rather in an entity created expressly for the EB-5 investors.)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The EB-5 Funds are raised from
foreign nationals. Once raised, the funds would be loaned to each of the JV’s wholly owned subsidiary Recycling Plants. As
part of the JV agreement, ACG will provide the capital to the JV for the plant projects, approximately $30 million for each site,
and GETH will provide the material, the technology to recycle and convert using the “PlastExtract” process, management
experience and all sales of the plant produced crude oil and compounded plastic resin.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The joint venture with ACG will
allow the management of GETH to focus on building SR plants with the expertise of ACG’s financing through the EB-5 program.
The Company is excited to have such a valued JV partner within the environmental sector. In addition to the LOI with ACG the company
will continue to work with Mosaic Capital, LLC; the company’s investment banker.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">Each plant the Company builds,
it is expected to create over 140 direct US jobs for each 35,000 tons of plastic processed through the plant as well as many more
related indirect US jobs. The plants will operate 7 days a week and 24 hours a day with 2 shifts per day. This volume translates
into approximately 120,000 barrels of oil and approximately 50 million pounds of compounded plastic resin annually. This project
is exactly what the EB-5 program is designed to do, to encourage investment in US companies and create much needed US jobs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">The JV with ACG will fund GETH’s
SR plants going forward. With the amount of Shredder Residue that currently ends up in landfills each year being approximately
4 million tons, which equates to 920,000 tons of reusable plastic; the Company could potentially build 40 of these plants. Management
believes working with ACG using the EB-5 program is a perfect vehicle for the Company to accomplish such a building program.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">Each plant has the potential to
produce approximately $60 million in revenue per year. The companies are currently researching locations in the northern Midwest
where unemployment is some of the highest in the US.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On February 16, 2012, the Company
announced the hiring of Brian Chrisman as its Vice President of Business Development. Mr. Chrisman brings 12 years of experience
in global management level positions in the high technology supply chain with emphasis on Six Sigma and Lean Manufacturing management
techniques. He founded Borgata Recycling in 2007 which became one of Northern California largest waste tire processors handling
up to 10,000 waste tire equivalents per day. With his extensive experience in supply/demand operations and in-depth understanding
of the recycling industry he will handle our large supply demands in our plants.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On February 22, 2012, the Company
agreed with H.E. Capital, which holds indebtedness of the Company in form of promissory notes to assign two of its promissory notes.
The Company agreed with H.E. Capital’s plan to assign a $22,000 note dated October 3, 2010 to William E. Curtis and a $20,000
note dated December 3, 2010 to Equity Digest S.L. William E. Curtis and Equity Digest S.L. wish to exchange their notes for restricted
common shares of the Company. The Company agreed with the assignment of the notes and the Company agreed to exchange restricted
common shares of the Company for the notes. This exchange would eliminate $42,000 in debt of the Company. The Company authorized
to issue 1,100,000 shares of restricted common stock to William E. Curtis as settlement for the $22,000 note to H.E. Capital, S.A.,
dated October 13, 2010 and authorized to issue 1,000,000 shares of restricted common stock to Equity Digest S.L. as settlement
for the $20,000 note to H.E. Capital, S.A., dated December 3, 2010 and upon issuance of these restricted shares, these notes will
be duly paid and non assessable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="margin: 6pt 0 12pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On February 23, 2012, the Company
agreed with H.E. Capital, which holds indebtedness of the Company in the form of promissory notes to assign two of these promissory
notes. The Company agreed with H.E. Capital’s plan to assign a $75,000 note dated December 3, 2010 to Pop Holdings Ltd. and
a $75,000 note dated December 3, 2010 to Pelican International Holdings, Ltd. Pop Holdings Ltd. and Pelican International Holdings
Ltd. wish to exchange their notes for restricted common shares of the Company. The Company agreed with the assignment of the notes
and the Company agreed to exchange restricted common shares of the Company for the notes. This exchange would eliminate $150,000
in debt of the Company. The Company authorized to issue 5,000,000 shares of restricted common stock to Pop Holdings Ltd. as settlement
for the $75,000 note to H.E. Capital, S.A., dated December 3, 2010 and authorized to issue 5,000,000 shares of restricted common
stock to Pelican International Holdings, Ltd. as settlement for the $75,000 note to H.E. Capital, S.A., dated December 3, 2010
and upon issuance of these restricted shares, these notes will be duly paid and non assessable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On March 5, 2012, the Company
entered into a letter agreement with Magic Bright Limited (“Magic Bright”), Wong Kwok Wing Tony (“Tony”),
and Chan Sau Fong (collectively with Tony, the “Sellers”) to terminate the Purchase Agreement as amended on March
25, 2011 between the Company and Sellers effective April 1, 2012. (See Note 14)</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 1- <u>ORGANIZATION AND BASIS
OF PRESENTATION</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The unaudited financial statements
included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission
(“SEC”). The financial statements and notes are presented as permitted on Form 10-Q and do not contain information
included in the Company’s annual statements and notes. Certain information and footnote disclosure normally included in financial
statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed
or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the
information presented not misleading. It is suggested that these financial statements be read in conjunction with the December
31, 2010 Form 10-K filed with the SEC, including the audited financial statements and the accompanying notes thereto. While management
believes the procedures followed in preparing these financial statements are reasonable, the accuracy of the amounts are in some
respects dependent upon the facts that will exist, and procedures that will be accomplished by the Company later in the year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">These unaudited condensed consolidated
financial statements reflect all adjustments, including normal recurring adjustments which, in the opinion of management, are necessary
to present fairly the operations and cash flows for the periods presented.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Green EnviroTech Holdings Corp.
(the “Company”) was incorporated on June 26, 2007 under the name Wolfe Creek Mining, Inc. under the laws of the State
of Delaware. The Company up until November 20, 2009 was primarily engaged in the acquisition and exploration of mining properties.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On November 20, 2009, the Company,
entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Green EnviroTech Acquisition Corp., a Nevada
corporation and wholly-owned subsidiary of the Company (“Subsidiary”) and Green EnviroTech Corp., a Nevada corporation
(“Green EnviroTech”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On October 6, 2008, Green EnviroTech
(formerly EnviroPlastics Corp) was incorporated in the State of Nevada.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On August 18, 2011, the Company
authorized that the Company’s wholly-owned subsidiary, Green EnviroTech Corp., a Nevada Corporation, shall be dissolved effective
October 1, 2011 and all its assets and liabilities be assigned to its parent Green EnviroTech Holdings Corp.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The Company is a plastics recovery,
separation, cleaning, and recycling company, with the intent to supply recycled commercial plastics to industries such as the automotive
and consumer products industries, and it plans to construct large-scale plastics recycling facilities near automotive shredder
locations nationwide. Operating in conjunction with large national recycling partners, the Company using a patent pending process
developed in conjunction with Thar Process, Inc. will produce recycled commercial grade plastics ready to be re-introduced into
commerce. Additionally, the Company will convert waste and scrap plastic into high-value energy products, including crude oil.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Pursuant to the Merger Agreement,
on November 20, 2009 (the “Closing Date”), the Subsidiary merged with and into Green EnviroTech resulting in Green
EnviroTech becoming a wholly-owned subsidiary of the Company (the “Merger”). As a result of the Merger, the Company
issued 45,000,000 shares of its common stock (the “Acquisition Shares”) to the shareholders of Green EnviroTech, representing
75% of the issued and outstanding common stock following the closing of the Merger. The outstanding shares of Green EnviroTech
were cancelled.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">In October 2009, Kristen Paul,
the owner of 44,999,895 shares of the Company’s common stock sold her shares to Green EnviroTech Corp. These shares were
cancelled. With the cancellation of those shares, Kristen Paul resigned as the sole officer and director and was replaced by former
officers of Green EnviroTech.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The transaction was recorded
as a reverse merger, and the historical financial information is that of Green EnviroTech Corp.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On December 12, 2009, Green EnviroTech
entered into an (i) equipment purchase and installation agreement (the “Purchase Agreement”) with Agilyx (formally
Plas2Fuel) Corporation (“Agilyx (formally Plas2Fuel)”), (ii) oil marketing and distribution agreement with Agilyx (formally
Plas2Fuel) (the “Oil Marketing Agreement”), and (iii) license agreement with Agilyx (formally Plas2Fuel) (the “License
Agreement”). Plas2Fuel Corporation changed its name to Agilyx Corporation effective June 8, 2010.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="margin: 12pt 0 6pt"> </p>
<p style="margin: 6pt 0 12pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 1- <u>ORGANIZATION AND BASIS
OF PRESENTATION</u> (CONTINUED)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">All agreements and contracts negotiated
as Plas2Fuel Corporation are still in full force and will be honored by Agilyx Corporation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">Pursuant to the Purchase Agreement,
Green EnviroTech agreed to purchase, and Agilyx (formally Plas2Fuel) agreed to sell and install, a twelve vessel waste plastic
to oil recycling system (the “System”), for a purchase price of $5,595,645. Green EnviroTech agreed to pay the purchase
price over five installments. On December 31, 2009, Agilyx (formally Plas2Fuel) issued a waiver to Green EnviroTech leaving it
to the discretion of Green EnviroTech to implement the first installment due date before the equipment would be shipped. As of
September 30, 2011, the first installment date had not been determined.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Pursuant to the Oil Marketing
Agreement, Green EnviroTech agreed to provide to Agilyx (formally Plas2Fuel), on an exclusive basis, the crude oil generated by
the System, meeting the specifications set forth in the Oil Marketing Agreement, and Agilyx (formally Plas2Fuel) agreed to broker
the oil for sale to third parties, for a commission of 10%. The Oil Marketing Agreement has a term of five years commencing on
December 12, 2009, which will renew automatically for successive one year terms unless either party provides written notice at
least 90 days prior to such renewal.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Pursuant to the License Agreement,
Agilyx (formally Plas2Fuel) agreed to grant Green EnviroTech a limited license to use Agilyx (formally Plas2Fuel)’s proprietary
technology and information in connection with operation of the System at Green EnviroTech’s facilities, for a license fee
of 10% of <font style="color: black">Net Oil Revenue. On May 18, 2010, the License Agreement was amended to give Green EnviroTech
an exclusive provisional right to the Auto Shredder Residue (“ASR”) market within North America. The right expires
on January 1, 2021. Agilyx (formally Plas2Fuel) excluded producers they are servicing on Exhibit A which indicated “none”.
The exclusive right is contingent upon the Company </font>purchasing from Agilyx (formally Plas2Fuel) and paying in full for Plastic
Reclamation Units on a prearranged schedule as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1.5in; text-align: justify; text-indent: -0.25in">a)      
Twelve (12) Plastic Reclamation Units (“<b><i>PRU’s</i></b>”) between January 1, 2010 and December 31, 2010;
(As of September 30, 2011, no units had been ordered. Even though no units have been ordered as set forth in the agreement, Agilyx
still recognizes the Company as having exclusive rights with no liability to Agilyx until the first order. It has not been determined
when the Company expects to place the first order.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1.5in; text-align: justify; text-indent: -0.25in">b)      
Twenty (20) PRU’s between January 1, 2011 and December 31, 2011; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1.5in; text-align: justify; text-indent: -0.25in">c)      
Forty (40) PRU’s between January 1, 2012 and December 31, 2012; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1.5in; text-align: justify; text-indent: -0.25in">d)      
Forty (40) PRU’s between January 1, 2013 and December 31, 2013; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1.5in; text-align: justify; text-indent: -0.25in">e)      
Forty (40) PRU’s between January 1, 2014 and December 31, 2014; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Times New Roman, Times, Serif; color: black">f)       
</font>Forty (40) PRU’s between January 1, 2015 and December 31, 2015; <font style="color: black">and</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1.5in; text-align: justify; text-indent: -0.25in">g)      
Forty (40) PRU’s between January 1, 2016 and December 31, 2016; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1.5in; text-align: justify; text-indent: -0.25in">h)      
Forty (40) PRU’s between January 1, 2017 and December 31, 2017; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1.5in; text-align: justify; text-indent: -0.25in">i)        
Forty (40) PRU’s between January 1, 2018 and December 31, 2018; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1.5in; text-align: justify; text-indent: -0.25in">j)       
Forty (40) PRU’s between January 1, 2019 and December 31, 2019; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1.5in; text-align: justify; text-indent: -0.25in">k)      
Forty (40) PRU’s between January 1, 2020 and December 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On December 4, 2009, the Company
formed Green EnviroTech Wisconsin, Inc., (“GET WISC”) a Wisconsin Corporation in anticipation of opening a plant in
Wisconsin.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On August 9, 2010, the Company
formed Green EnviroTech Riverbank, Inc., (“GETRB”) a California Corporation in anticipation of opening a plant in Riverbank,
CA. Procedures toward development of the plant and acquisition of equipment are presently undetermined. GETRB was dissolved at
midnight December 31, 2011. (See Note 15)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On March 30, 2011, the Company
acquired Magic Bright Limited (“Magic Bright”), a Hong Kong Corporation. Magic Bright is a plastics brokerage company
brokering waste plastic in Europe and Asia.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="margin: 12pt 0 6pt"> </p>
<p style="margin: 6pt 0 12pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 1- <u>ORGANIZATION AND BASIS
OF PRESENTATION</u> (CONTINUED)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">During the quarter ended June
30, 2011, and thereafter, the Company was unable to receive from Magic Bright their financial records and support for the transactions
as a result of the failure to make the first required note payment. The parties mutually agreed that due to the failure of the
Company to be properly funded and make the required note payments as stipulated in the purchase agreement, that effective April
1, 2011, the agreement would be terminated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">As a result of this termination,
the Company returned the stock of Magic Bright to the original shareholders, and Magic Bright shareholders forgave the remaining
$700,000 owed by the Company as consideration for the acquisition and returned to the Company, the 1,000,000 shares of convertible
preferred stock that were issued in the agreement. The Company agreed that the initial $300,000 paid by the Company as cash consideration
for the acquisition would be retained by the sellers and agreed to let the Magic Bright shareholders keep the 184,000 shares of
common stock issued to them on March 31, 2011. (See Notes 12 and 14).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">On April 22, 2011, the Company
entered into an agreement with Mosaic Capital LLC (“Mosaic”) wherein Mosaic will act as the Company’s financial
advisor and will assist the Company with providing growth capital for the Company. Mosaic will also assist with raising growth
capital for the Company overall in the range of up to $15,000,000. The term of the agreement is until the satisfaction of the funding
or until 30-day written notice of termination by either party. Mosaic is to receive a $20,000 cash retainer and $30,000 in warrants.
(See Note 3)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Effective July 1, 2009, the
Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
105-10, Generally Accepted Accounting Principles – Overall (“ASC 105-10”). ASC 105-10 establishes the FASB Accounting
Standards Codification (the “Codification”) as the source of authoritative accounting principles recognized by the
FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP. Rules and
interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC
registrants. All guidance contained in the Codification carries an equal level of authority. The Codification superseded all existing
non-SEC accounting and reporting standards. All other non-grandfathered, non-SEC accounting literature not included in the Codification
is non-authoritative. The FASB will not issue new standards in the form of Statements, FASB Positions or Emerging Issue Task Force
Abstracts. Instead, it will issue Accounting Standards Updates (“ASUs”). The FASB will not consider ASUs as authoritative
in their own right. ASUs will serve only to update the Codification, provide background information about the guidance and provide
the bases for conclusions on the change(s) in the Codification. References made to FASB guidance throughout this document have
been updated for the Codification.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 1in; text-align: justify"><b><u>Going Concern</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">These condensed consolidated
financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets
and discharge its liabilities in the normal course of business. The Company acquired Magic Bright Limited (“Magic Bright”),
a Hong Kong Corporation, on March 30, 2011. Magic Bright is a plastics brokerage company brokering waste plastic in Europe and
Asia.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The Company and the shareholders
of Magic Bright determined that, as a result of the failure by the Company to pay $700,000 of the aggregate $1,000,000 of cash
consideration payable by the Company for the acquisition, the Company was unable to obtain requisite financial statements for Magic
Bright, and the purchase agreement for the acquisition would be terminated effective April 1, 2011. (See Note 14)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The Company has not generated
revenues since inception and has generated losses totaling $6,307,607 for the period October 6, 2008 (Inception) through September
30, 2011 and needs to raise additional funds to carry out their business plan.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The Company has raised net debt
financing of $1,028,252 from non-related third parties through September 30, 2011and $303,996 from the Company’s CEO through
September 30, 2011. The continuation of the Company as a going concern is dependent upon the continued financial support from its
shareholders and the ability of the Company to obtain necessary equity financing to continue and expand operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"> </p>
<p style="margin: 12pt 0 6pt"> </p>
<p style="margin: 6pt 0 12pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify"> </p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-indent: -1in">NOTE 1- <u>ORGANIZATION AND BASIS
OF PRESENTATION</u> (CONTINUED)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt 1in; text-align: justify"><b><u>Going Concern </u>(Continued)</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The Company has had very little
operating history to date. These condensed consolidated financial statements do not include any adjustments to the recoverability
and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable
to continue as a going concern. These factors raise substantial doubt regarding the ability of the Company to continue as a going
concern.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">Besides generating revenues
from proposed operations, the Company may need to raise additional funds to expand operations to the point at which the Company
can achieve profitability. The terms of new debt or equity that may be raised may not be on terms acceptable by the Company. If
adequate funds cannot be raised outside of the Company, the Company’s officers and directors may need to contribute additional
funds to sustain operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">In February of 2011, the Company
retained the services of the Strategic Tactical Asset Trading LLC. to handle its investor relations program and to communicate
the Company’s business and growth strategy to the investment community.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 6pt 1in; text-align: justify">The Company entered into a twelve
(12) month agreement with AME Holdings Group, LLC (Consultant) on March 3, 2011 wherein Consultant will provide consulting services
designed to assist Company in growing its business through mergers, acquisitions, debt financing, structured finance, strategic
capital assistance and/or other legal means.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 1in; text-align: justify">On July 9, 2011, the Company signed
a Letter of Intent with Ebbros I Investment Group, LLC (“Ebbros”) wherein the Company and Ebbros would explore the
major terms for the development of a recycling facility in Mississippi and in Kansas to convert disposable tires and plastic into
crude oil. Ebbros would develop the facilities by providing the building and equipment according to Company specifications. The
Company would lease, with a purchase option, the building and equipment from Ebbros. Ebbros would also purchase the crude oil produced
at the facilities. This joint development would assist the Company in the generation of revenue.</p>
<p style="margin: 0pt"></p>