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PRESENTATION OF FINANCIAL STATEMENTS
12 Months Ended
Dec. 31, 2012
Accounting Policies [Abstract]  
PRESENTATION OF FINANCIAL STATEMENTS

2.    PRESENTATION OF FINANCIAL STATEMENTS

 

Basis of Presentation– The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).

 

Principles of Consolidation – The consolidated financial statements for the years ended December 31, 2012 and 2011 include the accounts of  GTSO Urban Mining LLC and GTSO Resources LLC.  All intercompany transactions and balances have been eliminated in consolidation.

 

Going Concern — The Company’s consolidated financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As shown in the consolidated financial statements, the Company incurred a net loss of $1,417,312 for the year ended December 31, 2012, while the Company’s current liabilities exceeded its current assets by $338,929 as of December 31, 2012.

 

In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to meet its financing requirements on a continuing basis by raising additional funds through debt or equity financing. The Company expects to satisfy its cash requirements by obtaining additional loans; however, there is no assurance that additional capital will be available to the Company when needed and on acceptable terms.  The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

 

Use of Estimates and Assumptions– The preparation of consolidated financial statements in accordance with United States generally accepted accounting principles 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from these estimates.