GOING CONCERN	3 Months Ended
Oct. 31, 2011
GOING CONCERN	2. GOING CONCERN *Financial Condition* The Company’s financial statements for the quarter ended October 31, 2011 have been prepared on a going concern basis which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company had a net loss for the quarter ended October 31, 2011 of $1,098,031 compared to net income for the year ended July 31, 2011 of $6,074,863 , a net loss for the year ended July 31, 2010 of $17,818,318, and net income of $10,785,443 for the year ended July 31, 2009. As of October 31, 2011, the Company has $1,823,460 of cash on hand and a working capital deficit of $12,380,896. The Company has approximately $8.1 million of debt maturing on January 31, 2012 as discussed in Note 4. *Management Plans to Continue as a Going Concern* With the acquisition of e-biofuels, LLC in May 2010 and the rapid increase in sales volumes achieved by the Company, the Company believes that its e-biofuels subsidiary will result in sufficient positive cash flow to maintain the Company’s operations and service its obligations. The Company is also examining new financing options and has sold some equity securities.

2. GOING CONCERN

Financial Condition

The Company’s financial statements for the quarter ended October 31, 2011 have been prepared on a going concern basis which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company had a net loss for the quarter ended October 31, 2011 of $1,098,031 compared to net income for the year ended July 31, 2011 of $6,074,863 , a net loss for the year ended July 31, 2010 of $17,818,318, and net income of $10,785,443 for the year ended July 31, 2009. As of October 31, 2011, the Company has $1,823,460 of cash on hand and a working capital deficit of $12,380,896. The Company has approximately $8.1 million of debt maturing on January 31, 2012 as discussed in Note 4.

Management Plans to Continue as a Going Concern

With the acquisition of e-biofuels, LLC in May 2010 and the rapid increase in sales volumes achieved by the Company, the Company believes that its e-biofuels subsidiary will result in sufficient positive cash flow to maintain the Company’s operations and service its obligations. The Company is also examining new financing options and has sold some equity securities.