0001445866-13-000717.txt : 20130531 0001445866-13-000717.hdr.sgml : 20130531 20130531132441 ACCESSION NUMBER: 0001445866-13-000717 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20130331 FILED AS OF DATE: 20130531 DATE AS OF CHANGE: 20130531 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENERGY EDGE TECHNOLOGIES CORP. CENTRAL INDEX KEY: 0001495230 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ENGINEERING SERVICES [8711] IRS NUMBER: 522439239 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-54285 FILM NUMBER: 13884373 BUSINESS ADDRESS: STREET 1: 1200 ROUTE 22 EAST STREET 2: SUITE 2000 CITY: BRIDGEWATER STATE: NJ ZIP: 08807 BUSINESS PHONE: 8887295722 EXT.100 MAIL ADDRESS: STREET 1: 1200 ROUTE 22 EAST STREET 2: SUITE 2000 CITY: BRIDGEWATER STATE: NJ ZIP: 08807 10-Q 1 eedg10q.htm 10-Q eedg10q.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

Form 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2013

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 333-167853

ENERGY EDGE TECHNOLOGIES CORPORATION
(Exact name of registrant as specified in its charter)

New Jersey
 
52-2439239
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)


433 Plaza Real, Suite 275
   
Boca Raton, Florida
 
33432
(Address of principal executive offices)
 
(Zip Code)

(561) 962-4258
(Registrant’s telephone number, including area code)

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Ruble 12b-2 of the Exchange Act.

Large accelerated filer   o
Accelerated filer  o
Non-accelerated filer  o (Do not check if a smaller reporting company)
Smaller reporting company  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  o No x

The number of shares of Common Stock, $0.00001 par value, outstanding on May 14, 2013 was 102,873,829.
 
 
 

 
 
ENERGY EDGE TECHNOLOGIES CORPORATION AND SUBSIDIARIES



 
Part I – Financial Information
 
 
 
 
 
 
 
     
 
Part II – Other Information
 
     
     
 
 
PART 1.  FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS
 
CONSOLIDATED BALANCE SHEETS (Unaudited)
AS OF MARCH 31, 2013 AND DECEMBER 31, 2012



ASSETS
 
March 31, 2013
   
December 31, 2012
 
Current Assets
           
Cash and cash equivalents
  $ 24,737     $ 18,553  
Contract receivables – net
    -       -  
Costs and estimated earnings in excess of billings
    -       -  
Accounts receivable – other
    348       348  
Prepaid expenses
    295,233       300,442  
Total Current Assets
    320,318       319,343  
                 
Property and Equipment
               
Computers and equipment
    10,640       10,640  
Less: accumulated depreciation
    (6,024 )     (5,595 )
Property and Equipment – net
    4,616       5,045  
Other Assets                
Intangible Assets
    3,566       0  
TOTAL ASSETS
  $ 328,500     $ 324,388  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
               
Liabilities
               
Current liabilities
               
Accounts payable
  $ 165,798     $ 343,334  
Accrued expenses and other current liabilities
    97,237       125,830  
Due to Related Parties
    15,615       30,696  
Billings in excess of costs and estimated earnings on uncompleted contracts
    -       -  
Total Liabilities
    278,650       499,860  
                 
Stockholders’ Equity (Deficit)
               
Common stock, $.00001 par value, 250,000,000 shares authorized, 100,357,026 shares issued and outstanding (78,667,872 – December 31, 2012)
    999       782  
Additional paid in capital
    3,102,389       2,616,359  
Subscription receivable
    (1,000 )     (1,000 )
Treasury stock
    (5,000 )     (5,000 )
Accumulated deficit
    (3,047,931 )     (2,746,648 )
      49,457       (135,507 )
      Non-controlling interests
    393       (39,965 )
Total Stockholders’ Equity (Deficit)
    49,850       (175,472 )
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
  $ 328,500     $ 324,388  
 
The accompanying notes are an integral part of these financial statements.
 
 
F-1

 
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012
 
 
    Three Months Ended March 31,  
   
2013
   
2012
 
             
CONTRACT REVENUES
  $ 2,240     $ 146,071  
                 
CONTRACT COSTS
    2,521       117,987  
                 
GROSS PROFIT
    (281 )     28,084  
                 
OPERATING EXPENSES
               
Compensation
    17,166       6,088  
Consulting services
    100,919       10,727  
Professional fees
    19,534       4,020  
Director fees
    2,000       -  
General & administrative expenses
    119,375       19,636  
TOTAL OPERATING EXPENSES
    258,994       40,471  
                 
LOSS FROM OPERATIONS
    (259,275 )     (12,387 )
                 
OTHER INCOME (EXPENSE)
               
    Interest expense
    (950 )     (1,274 )
                 
LOSS FROM OPERATIONS AND BEFORE NON-CONTROLLING INTERESTS
    (260,225 )     (13,661 )
                 
LESS: LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
    50,408       -  
                 
LOSS BEFORE PROVISION FOR INCOME TAXES
    (209,817 )     (13,661 )
                 
PROVISION FOR INCOME TAXES
    -       -  
                 
NET LOSS ATTRIBUTABLE TO ENERGY EDGE TECHNOLOGIES CORPORATION
  $ (209,817 )   $ (13,661 )
                 
LOSS PER SHARE: BASIC AND DILUTED
  $ (0.00 )   $ (0.00 )
                 
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:   BASIC AND DILUTED
    94,364,613       82,711,205  
 
The accompanying notes are an integral part of these financial statements.
 
 
F-2

 
 CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT) (Unaudited)
AS OF MARCH 31, 2013

   
Common Stock
    Additional Paid in    
Subscription
   
Treasury
   
Non-Controlling
   
Accumulated Deficit
   
Total Stockholders’ Equity (Deficit)
 
   
Shares
   
Amount
   
Capital
   
Receivable
   
Stock
   
Interests
   
(Restated)
   
(Restated)
 
                                                 
Balance, December 31, 2010, as originally reported
    48,986,825     $ 490     $ 1,639,238     $ -     $ -     $ -     $ (1,629,587 )   $ 10,141  
                                                                 
Correction of payroll tax liability
                                                    74,200       74,200  
                                                                 
Balance, December 31, 2010, as restated
    48,986,825       490       1,639,238       -       -       -       (1,555,387 )     84,341  
                                                                 
Issuance of shares under private placement at $.10 per share
    30,000       -       3,000       -       -       -       -       3,000  
                                                                 
Issuance of shares for consulting services
    28,270,000       283       47,917       -       -       -       -       48,200  
                                                                 
Issuance of shares for legal services
    3,974,380       40       138,798       -       -       -       -       138,838  
                                                                 
Net loss for the year ended December 31, 2011
    -       -       -                               (448,290 )     (448,290 )
                                                                 
Balance, December 31, 2011, as restated
    81,261,205       813       1,828,953       -       -       -       (2,003,677 )     (173,911 )
                                                                 
Issuance of shares for cash
    10,916,667       109       122,891       -       -       -       -       123,000  
                                                                 
Issuance of shares for services
    16,000,000       160       668,215       -       -       -       -       668,375  
                                                                 
Shares retired per merger agreement
    (28,000,000 )     (280 )     280       -       -       -       -       -  
                                                                 
Shares returned by consultants
    (2,010,000 )     (20 )     (3,980 )     -       -       -       -       (4,000 )
                                                                 
Purchase of treasury stock
    -       -       -       -       (5,000 )     -       -       (5,000 )
                                                                 
Acquisition of stock in subsidiaries
    -       -       -       (1,000 )     -       1,190       -       190  
                                                                 
Net loss for the year ended December 31, 2012
    -       -       -       -       -       (41,155 )     (742,971 )     (784,126 )
                                                                 
Balance, December 31, 2012
    78,167,872       782       2,616,359       (1,000 )     (5,000 )     (39,965 )     (2,746,648 )     (175,472 )
                                                                 
Issuance of shares for cash
    18,533,334       185       288,928                                       289,113  
                                                                 
Issuance of shares for services
    1,700,000       17       80,983                                       81,000  
                                                                 
Issuance of stock for cancellation of debt
    1,455,820       15       116,119                                       116,134  
                                                                 
Acquisition of non-controlling interest
                                            (700 )             (700 )
                                                                 
Termination of non-controlling interest
                                            91,466       (91,466 )     -  
                                                                 
Net loss for the 3 months ended March 31, 2013
                                            (50,408 )     (209,817 )     (260,225 )
                                                                 
Balance March 31, 2013
    100,357,026     $ 999     $ 3,102,389     $ (1,000 )   $ (5,000 )   $ 393     $ (3,047,931 )   $ 49,850  
                                                                 
 
The accompanying notes are an integral part of these financial statements.
 
 
F-3

 
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012

Three Month Ended March 31,
   
2013
   
2012
 
CASH FLOWS FROM OPERATING ACTIVITIES
           
Net (loss) for the year
  $ (209,817 )   $ (13,661 )
Adjustments to reconcile net loss to net cash used in operating activities:
               
Non-controlling interests
    (50,408 )     -  
Depreciation
    429       430  
Shares issued for services
    81,000       1,500  
Share returned to Company by consultants
    -       -  
Changes in operating assets and liabilities:
               
Accounts receivable
    -       (48,008 )
Costs and estimated earnings in excess of billings on uncompleted contracts
    -       19,321  
Accounts receivable - other
    -       7,789  
Prepaid consulting fees
    5,209       (7,123 )
Accounts payable
    (61,402 )     (41,076 )
Billings in excess of costs and estimated earnings on uncompleted contracts
    -       94,574  
Sales tax payable
    -       -  
Accrued expenses and other current liabilities
    (28,593 )     (6,549 )
                 
Cash flows provided by (used in) operating activities
    (263,582 )     7,197  
                 
CASH FLOWS FROM INVESTING ACTIVITIES
               
Purchase of property and equipment     -       -  
Purchase of intangible assets
    (3,566 )     -  
Cash flows used in investing activities
    (3,566 )     -  
                 
CASH FLOWS FROM FINANCING ACTIVITIES
               
Net increase in related party loans
    (15,781 )     (3,138 )
Proceeds from the sale of common stock
    289,113       -  
Purchase of treasury shares
    -       (5,000 )
Cash flows provided by (used in) financing activities
    273,332       (8,138 )
                 
Net increase (decrease) in cash and cash equivalents
    6,184       (941 )
Cash and cash equivalents, beginning of the period
    18,553       3,243  
Cash and cash equivalents, end of the period
  $ 24,737     $ 2,302  
                 
SUPPLEMENTAL CASH FLOW INFORMATION:
               
Interest paid
  $ 950     $ 1,274  
Income taxes paid
  $ -     $ 500  
                 
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
               
Issuance of stock in payment of accounts payable
  $ 116,134     $ 0  
Acquisition of non-controlling interest
  $ 91,466     $ 0  
 
The accompanying notes are an integral part of these financial statements
 
 
F-4

 
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013

NOTE 1 – NATURE OF OPERATIONS

Energy Edge Technologies Corporation (“Energy Edge”, “EEDG”, “Energy Edge Solutions”, “EES”, The Gourmet Wing Company, Inc.”, “The Gourmet Wing Company”, “TGWC” and the “Company”) was incorporated in New Jersey in January, 2004.  Energy Edge Technologies Corporation is comprised of two subsidiaries; Energy Edge Solutions and The Gourmet Wing Company, Inc

Energy Edge Solutions (EES) provides energy engineering and services specializing in the development and implementation of advanced, turnkey projects to reduce energy losses and increase the efficiency of new and existing buildings.  The Company is comprised of professional and industrial engineers, Leadership in Energy and Environmental Design (“LEED”) Accredited Professionals, and Green Building Coalition Certifying Agents.  Energy Edge is a Clean Energy Pay for Performance Partner and a Smart Start Building Trade Ally.  EES’ custom designed projects are developed using proprietary methods and maximize energy savings by treating an entire facility based on its unique features and electricity and gas usage. 

EES applies a whole facility approach to energy cost reduction by applying different technologies and engineering approaches to treat most of the various electrical and gas consuming loads across facility such as lighting, HVAC, refrigeration, and production equipment.  The energy projects developed and implemented by EES are ideal for virtually any type of facility and have successfully resulted in tremendous savings in manufacturing plants, hospitals, entertainment venues, office buildings, restaurants, warehouses, etc.   

EES’ revenues come primarily from engineering survey work and turnkey energy projects where EES takes responsibility for equipment procurement, installation labor, utility rebates, tax incentives, pre and post survey work, waste removal, certifications, and ongoing measurement and verification of results. 

The Gourmet Wing Company, Inc. (TGWC) is a newly formed combined fast casual restaurant company in the chicken wing segment and restaurant management company. TGWC is primarily engaged in the business of developing and subsequently managing, licensing, operating, developing and franchising a broad portfolio of restaurant and food concepts.

TGWC revenues will primarily be derived from management fees, royalty fees, licensing fees and franchise fees.  TGWC will also sell food, sauces, mixes and other supplies to its franchisees/licensees.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Consolidation
The consolidated financial statements include the accounts of Energy Edge Technologies Corporation, Dry Fried Wing Company, and Energy Edge Solutions, Inc.(collectively, the “Company”). All material intercompany transactions have been eliminated.

Basis of Accounting
Energy Edge uses the accrual basis of accounting for financial statement reporting. Accordingly, revenues are recognized when products are delivered and services are rendered, and expenses are recognized when the obligation is incurred. The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. The Company has selected a December 31 year end.
 
 
F-5


ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K filed with the SEC as of and for the year ended December 31, 2012.  In the opinion of management, all adjustments necessary for the financial statements to be not misleading for the interim periods presented have been reflected herein.  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Fair Value of Financial Instruments
The Company's financial instruments consist of cash and cash equivalents, receivables, prepaid consulting fees, accounts payable, accrued expenses and other current liabilities, and loans payable –related parties. The carrying amounts of these financial instruments approximate fair value due either to length of maturity or interest rates that approximate prevailing rates unless otherwise disclosed in these financial statements.

Contract Receivables
Contract receivables are recorded when invoices are issued and are presented in the balance sheet net of the allowance for doubtful accounts. The Company extends credit to customers in the normal course of business. The Company continually monitors contract receivables. When we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance to reduce the net recognized receivable to the amount we believe will be collected. We write off uncollectible amounts against the allowance when we have exhausted our collection efforts.

Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances. However, actual results may differ from the estimates.

Concentrations of Credit Risk
The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.

Income Taxes
Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of March 31, 2013, there have been no interest or penalties incurred on income taxes.

Research and Development
The Company has not incurred any research and development costs to date.

Non-Controlling Interests
As of December 31, 2012, the non-controlling interests balances were ($39,965), due to minority ownership of 35% in Gourmet Wing Company, and 49% in Energy Edge Solutions, Inc. As of March 31, 2013, the non-controlling interest balance was $393 due to the minority ownership of 49% in Energy Edge Solutions, Inc. On March 31, 2013, the Company acquired the minority interest in Gourmet Wing Company, bringing their ownership of Gourmet to 100%.
 
 
F-6

 
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Revenue Recognition
The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. That method is used because management considers total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term.

Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation. Selling, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income, which are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements, are accounted for as changes in estimates in the current period. No profit is recognized on change orders until they have been approved by the customer.

The asset, “Costs and estimated earnings in excess of billings on uncompleted contracts,” represents revenues recognized in excess of amounts billed. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts,” represents billings in excess of revenues recognized.

Stock-Based Compensation
The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation – Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values.  The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered.

The Company follows ASC Topic 505-50, formerly EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees.  In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined.  

Basic Income (Loss) Per Share
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of March 31, 2013.

Recent Accounting Pronouncements
Energy Edge does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position, or cash flows.

Reclassifications
Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

NOTE 3 -- ACCOUNTS RECEIVABLE

Accounts receivable other consists of $200 from current period sales of Gourmet Wings Company plus $348 from Gourmet Wings Company sales in a prior period.  $200 of such receivables are considered uncollectible and were written off in the current period.
 
 
F-7

 
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013

NOTE 4 -- OTHER ASSETS

Other assets represents the aggregate costs of $3,566 incurred by Gourmet Wings Company in the current period related to the development of sauce recipes.  As the asset will be useful for a period of indeterminant length in the future, no amortization has been recognized.

NOTE 5 – PREPAID EXPENSES

Prepaid expenses consisted of the following at March 31, 2013 December 31, 2012:

   
March 31, 2013
   
December 31, 2012
 
Prepaid project expenses
  $ 29,950     $ 29,950  
Prepaid consulting expense
    265,283       270,492  
Total prepaid expenses
  $ 295,233     $ 300,442  

Prepaid Project Expenses
Prepaid project expenses consist of monies expended for project equipment for a project temporarily put on hold.

Prepaid Consulting
The Company has retained a number of consultants. These consultants are paid in cash and/or issuance of Company stock. Consultants were issued 1,700,000 shares of stock valued at $81,000 for the three months ended March 31, 2013. The consulting fees are being amortized over the terms of the contracts. As of March 31, 2013, and December 31, 2012, $265,283 and $270,492 respectively, remained in prepaid consulting.

NOTE 6 – PROPERTY AND EQUIPMENT

The Company’s policy is to depreciate the cost of property and equipment over the estimated useful lives of the assets by use of the straight-line method. The office equipment presently owned by the Company is being depreciated over an estimated useful life of five years. Depreciation expense for the three months ended March 31, 2013 and 2012 was $429 and $430, respectively.


NOTE 7 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following at March 31, 2013 and December 31, 2012:

   
March 31, 2013
   
December 31, 2012
 
Credit card balances
  $ 29,003     $ 28,596  
Accrue professional fees
    4,500       13,500  
Accrued payroll
    -       20,000  
Payroll taxes payable
    48,652       48,652  
Sales tax payable
    15,082       15,082  
Total accrued expenses  and other current liabilities
  $ 97,237     $ 125,830  



NOTE 8 – RELATED PARTY TRANSACTIONS

Related party loans totaling $15,615 and $30,696 at March 31, 2013 and December 31, 2012, respectively, are owed to various related parties of the Company for reimbursement of expenses incurred on behalf of the Company.

Related party loans are unsecured, non-interest bearing and have no specific terms of repayment unless otherwise noted.
 
 
F-8

 
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013

NOTE 9 -- BUSINESS SEGMENTS

The Company is made up of three entities in which Energy Edge Technologies Corporation is the parent entity.  The Company owned a sixty-five percent interest in Gourmet Wings Company during the current quarter, but acquired the remaining thirty-five percent of the stock of Gourmet Wings Company as of March 31, 2013.  Fifty-one percent of the outstanding stock of Energy Edge Solutions, Inc. is owned by the Company.  Energy Edge Solutions, Inc. had virtually no operating activity during the current quarter.

The balance sheet and income statement information of each entity for the current quarter is presented in US Dollars as follows:
 
   
EEDG
   
TGWC
   
EES
   
Total
 
Current Assets
    290,233       30,074       11       320,318  
Fixed Assets
    4,616       0       0       4,616  
Intangibles
    0       3,566       0       3,566  
Total Assets
    294,849       33,640       11       328,500  
Current Liabilities
    276,936       1,600       114       278,650  
Intercompany
    (308,093 )     307,678       415       0  
Shareholders' Equity
    326,006       (275,638 )     (518 )     49,850  
Total Liabilities and Shareholders' Equity
    294,849       33,640       11       328,500  
                                 
                                 
                                 
                                 
Revenues
    2,040       200       0       2,240  
Costs of Sales
    (2,471 )     (50 )     0       (2,521 )
Gross Profit
    (431 )     150       0       (281 )
Operating Expenses
    (114,821 )     (144,173 )     0       (258,994 )
Other Expenses
    (950 )     0       0       (950 )
Net (loss) before non-controlling interest
    (116,202 )     (144,023 )     0       (260,225 )
Non-controlling interest
    50,408       0       0       50,408  
Net (loss) from operations
    (65,794 )     (144,023 )     0       (209,817 )



NOTE 10 – CAPITAL STOCK

On March 26, 2010, the Company amended its Articles of Incorporation to increase the number of authorized shares to 100,000,000 with a par value of $.00001.  On November 14, 2012, the Company amended its Articles of Incorporation to increase the number of authorized shares to 250,000,000 with a par value of $.00001.

During 2011, the Company sold 30,000 shares of common stock at $.10 per share under a private placement to an unrelated third party for total proceeds of $3,000.

During 2011, the Company issued 28,270,000 shares of stock valued at $48,200 to consultants. The shares were valued at prices ranging from $.0015 to $.10 per share.

During 2011, the Company issued 3,974,380 shares of stock valued at $138,838 for legal services. The shares were valued based on the value of the legal services provided.

On January 23, 2012, the Company issued 1,500,000 shares of stock valued at $15,000 for business consulting services.

On May 3, 2012, the Company issued 2,500,000 shares of stock valued at $39,375 for legal services.

On May 7, 2012, the Company issued 3,000,000 shares of stock valued at $105,000 for business consulting services.

On May 14, 2012, the Company issued 2,000,000 shares of stock valued at $52,500 for business consulting services.
 
 
F-9

 
On May 17, 2012, the Company sold 1,000,000 shares of common stock at $.01 per share under a private placement to an unrelated third party for total proceeds of $10,000.

On May 25, 2012, 10,000 shares of stock issued for consulting services in 2011 were returned to the Company.

On June 5, 2012, the Company sold 500,000 shares of common stock at $.01 per share under a private placement to an unrelated third party for total proceeds of $5,000.

On June 6, 2012, the Company sold 1,666,667 shares of common stock at $.0075 per share under a private placement to an unrelated third party for total proceeds of $12,500.

On June 6, 2012, the Company issued 500,000 shares of stock valued at $50,000 for business consulting services

On June 6, 2012, the Company sold 2,000,000 shares of common stock at $.015 per share under a private placement to an unrelated third party for total proceeds of $30,000.

On June 17, 2012, the Company issued 200,000 shares of stock valued at $9,000 for business consulting services.

On July 20, 2012, the Company issued 500,000 shares of stock valued at $65,000 for business consulting services.

On August 8, 2012, the Company issued 500,000 shares of stock valued at $50,000 for business consulting services.
 
 
F-10

 
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013

NOTE 10 – CAPITAL STOCK (continued)

On August 9, 2012, the Company issued 1,000,000 shares of stock valued at $90,000 for business consulting services.

On August 14, 2012, the Company issued 1,000,000 shares of stock valued at $67,500 for legal services.

On August 28, 2012, 2,000,000 shares of stock issued for consulting services in 2011 were returned to the Company.

On October 26, 2012, the Company sold 750,000 shares of common stock at $.0073 per share under a private placement to an unrelated third party for total proceeds of $5,500.

On November 21, 2012, 28,000,000 shares of stock previously held by former officers of the Company were surrendered.

On November 29, 2012, the Company sold 1,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $25,000.

On November 29, 2012, the Company issued 2,000,000 shares of stock valued at $80,000 for business consulting services.

On December 10, 2012, the Company issued 300,000 shares of stock valued at $15,000 for business consulting services.

On December 12, 2012, the Company issued 1,000,000 shares of stock valued at $30,000 for business consulting services.

On December 21, 2012, the Company sold 2,000,000 shares of common stock at $.005 per share under a private placement to an unrelated third party for total proceeds of $10,000.

On December 27, 2012, the Company sold 1,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $25,000.

As of December 31, 2012, the Company had no warrants or options outstanding.

On January 8, 2013, the Company sold 2,500,000 shares of common stock at $.03 per share under a private placement to an unrelated third party for total proceeds of $75,000.

On January 11, 2013, the Company sold 1,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $25,000.

On January 16, 2013, the Company sold 3,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $58,113.

On January 23, 2013, the Company issued 1,455,820 shares of common stock at $.08 per share in cancellation of debt in the amount of $116,134.

On January 29, 2013, the Company sold 10,000,000 shares of common stock at $.01 per share under a private placement to an unrelated third party for total proceeds of $100,000.

On January 30, 2013, the Company issued 200,000 shares of common stock valued at $6,000 for business consulting services.

On January 30, 2013, the Company sold 200,000 shares of common stock at $.03 per share under a private placement to an unrelated third party for total proceeds of $6,000.

On January 31, 2013, the Company sold 833,334 shares of common stock at $.03 per share under a private placement to an unrelated third party for total proceeds of $25,000.

On February 26, 2013, the Company issued 1,500,000 shares of common stock valued at $75,000 for prepaid legal services.
 
 
F-11

 
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013

NOTE 11 – INCOME TAXES

For the three month periods ended March 31, 2013 and 2012, the Company has incurred a net loss and, therefore, has no tax liability.  The net deferred tax asset was generated by the loss carry-forward of approximately $3,050,400 and will expire beginning in 2030.

The provision for federal income tax consists of the following at March 31:

   
March 31,
 2013
   
March 31,
2012
 
Federal income tax benefit attributable to:
           
Current operations
  $ 89,700     $ 152,000  
Less: valuation allowance
    (89,700 )     (152,000 )
Net provision for Federal income taxes
  $ 0     $ 0  

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

   
March 31, 2013
   
December 31, 2012
 
Deferred tax asset attributable to:
           
Net operating loss carryover
  $ 1,030,300     $ 940,600  
Less: valuation allowance
    (1,030,300 )     (940,600 )
Net deferred tax asset
  $ 0     $ 0  

As of March 31, 2013, the Company had net operating loss carry forwards of approximately $3,050,400 that may be available to reduce future years’ taxable income through 2033. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $3,050,400 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.

NOTE 12 – COMMITMENTS AND CONTINGENCIES

The Company neither owns nor leases any real property as of March 31, 2013. An officer has provided office services without charge.  There is no obligation for the officer to continue this arrangement.  Such costs are immaterial to the financial statements and accordingly are not reflected herein.
 
 
F-12

 
ENERGY EDGE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013

NOTE 13 – GOING CONCERN

The Company has limited working capital, and has suffered significant losses from operations.  These factors create substantial doubt about the Company’s ability to continue as a going concern.  The financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.
 
The ability of Energy Edge Technologies Corporation to continue as a going concern is dependent on the Company generating cash from the sale of its common stock, obtaining debt financing, attaining future profitable operations, acquiring or merging with a profitable company, and/or developing successful business operations in other industries through investment in related party ventures.  Management’s plans include selling its equity securities and obtaining debt financing to fund its capital requirements; however, there can be no assurance the Company will be successful in these efforts.
 
NOTE 14 – SUBSEQUENT EVENTS

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to March 31, 2013 to the date these financial statements were issued, and reports the following:

During the fiscal year ended December 31, 2012, the Company acquired sixty-five percent (65%) of the capital stock of The Dry Fried Wing Company.  On March 31, 2013, the Company acquired the remaining thirty-five percent (35%) of such stock.  On April 5, 2013 the Company officially changed the name of The Dry Fried Wing Company to The Gourmet Wing Company, Inc.  The Gourmet Wing Company is primarily engaged in the business of licensing, operating, developing and franchising a system of distinctive quick-service and fast casual restaurants in the chicken wing segment.  The Company has supplied a significant amount of capital to The Gourmet Wing Company and expects to continue to do so in the future in addition to supplying capital to Energy Edge Solutions.

In May  2013, we entered into an exclusive agreement with CRISP Watermelon Drink, LLC for the wholesale distribution of Cu'i (pronounced "swee") a 100% all natural water melon drink throughout the United States. 
 
 
F-13

 
 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

In this report, unless the context indicates otherwise, the terms "Energy Edge," "Company," "we," "us," and "our" refer to Energy Edge Technologies Corporation, a New Jersey corporation, and its wholly-owned subsidiaries.

Note regarding forward – looking statements

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, or the "Securities Act," and Section 21E of the Securities Exchange Act of 1934 or the "Exchange Act." These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or anticipated results.
 
In some cases, you can identify forward looking statements by terms such as "may," "intend," "might," "will," "should," "could," "would," "expect," "believe," "anticipate," "estimate," "predict," "potential," or the negative of these terms. These terms and similar expressions are intended to identify forward-looking statements. The forward-looking statements in this report are based upon management's current expectations and belief, which management believes are reasonable.  In addition, we cannot assess the impact of each factor on our business or the extent to which any factor or combination of factors, or factors we are aware of, may cause actual results to differ materially from those contained in any forward looking statements.  You are cautioned not to place undue reliance on any forward-looking statements.  These statements represent our estimates and assumptions only as of the date of this report. Except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
 
You should be aware that our actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including:
_
new competitors are likely to emerge and new technologies may further increase competition;
_
our operating costs may increase beyond our current expectations and we may be unable to fully implement our current business plan;
_
our ability to obtain future financing or funds when needed;
_
our ability to successfully obtain and maintain our diverse customer base;
_
our ability to protect our intellectual property through patents, trademarks, copyrights and confidentiality agreements;
_
our ability to attract and retain a qualified employee base;
_
our ability to respond to new developments in technology and new applications of existing technology before our competitors;
_
acquisitions, business combinations, strategic partnerships, divestures, and other significant transactions may involve additional uncertainties; and
_
our ability to maintain and execute a successful business strategy.
 
Other risks and uncertainties include such factors, among others, as market acceptance and market demand for our products and services, pricing, the changing regulatory environment, the effect of our accounting policies, potential seasonality, industry trends, adequacy of our financial resources to execute our business plan, our ability to attract, retain and motivate key technical, marketing and management personnel, and other risks described from time to time in periodic and current reports we file with the United States Securities and Exchange Commission, or the "SEC." You should consider carefully the statements under "Item 1A. Risk Factors" and other sections of this report, which address additional factors that could cause our actual results to differ from those set forth in the forward-looking statements and could materially and adversely affect our business, operating results and financial condition. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the applicable cautionary statements.

Critical Accounting Policies and Estimates

Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States ("US GAAP"). US GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues and expenses amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

We believe the following is among the most critical accounting policies that impact our consolidated financial statements. We suggest that our significant accounting policies, as described in our consolidated financial statements in the Summary of Significant Accounting Policies, be read in conjunction with this Management's Discussion and Analysis of Financial Condition and Results of Operations.
 
 
We recognize revenue in accordance with Staff Accounting Bulletin ("SAB") No. 104. All of the following criteria must exist in order for us to recognize revenue:

1. Persuasive evidence of an arrangement exists;
2. Delivery has occurred;
3. The seller's price to the buyer is fixed or determinable; and
4. Collectability is reasonably assured.

The majority of the Company's revenue results from sales contracts with direct customers and revenues are generated upon the shipment of goods and/ or delivery of services. The Company's pricing structure is fixed and there are no rebate or discount programs. Management conducts credit background checks for new customers as a means to reduce the subjectivity of assuring collectability. Based on these factors, the Company believes that it can apply the provisions of SAB 104 with minimal subjectivity.

Recent Accounting Pronouncements

The Company does not expect that the adoption of any recent accounting pronouncements will have any material impact on its financial statements.
 

Results of Operations – Three Months Ended March 31, 2013 as Compared to Three Months Ended March 31, 2012.. 

The following table summarizes the results of our operations during the three-month period ended March 31, 2013 and 2012, and provides information regarding the dollar and percentage increase (or decrease) from the respective periods.

   
Three Months ended March 31,
             
   
2013
   
2012
   
Increase
(decrease
   
% Change
 
Revenue
 
$
2,240
   
$
146,071
   
$
(143,831
)
   
(98
)%
Cost of sales
   
2,521
     
117,987
     
(115,466)
     
(98)
%
Gross profit
   
(281)
     
28,084
     
(28,515
)
   
(101
)%
General & Administrative & Professional Fees
   
140,909
     
23,656
     
117,253
     
496
%
Wages & Consulting Fees
   
118,085
     
16,815
     
101,270
     
602
%
Income (Loss) from operations
   
(259,275
)
   
(12,387
)
   
(246,888
)
   
(1993
)%
Other expense
   
950
     
1,274
     
(324
)
   
(25
)%
Provision for taxation
   
-
     
-
     
-
     
-
 
                                 
Net loss
   
(260,225
)
   
(13,661
)
   
(246,564
)
   
     (1805)
%
 
Revenues

Sales revenue decreased from $146,071 in the three months ended March 31, 2012 to $2,240 in the same period in 2013, representing a 98% decrease.  The decrease in revenue was mainly due to potential projects from the current sales pipeline not closing in the first quarter.

Cost of sales and gross margin

Cost of sales decreased from $117,987 in the three months ended March 31, 2012 to $2,521 in the same period in 2013, representing a 98% decrease. The decrease was mainly attributable to the absence of projects sold in the first quarter of 2013.  The gross profit percent decreased from 17% in the three months ended March 31, 2012 to (12.5)% in the same period in 2013.
 
Wages & Consulting Fees

Wages & Consulting Fees were $118,085 in the three months ended March 31, 2013 as compared to $16,815 in the three months ended March 31, 2012.  The increase was due to an increase in the amortization of pre-paid consulting fees.
 
General and administrative & Professional Fees
 
General and administrative and professional fees increased from $23,656 in the three months ended March 31, 2012 to $140,909 for the same period in 2013, representing an increase of $117,253 or 496%. The increase was mainly attributable to an increase in grand opening event expenses and marketing costs for The Gourmet Wing Company.
 
Net income (loss)
 
Net loss for the three months ended March 31, 2013 was $260,225 as compared to a net loss of $13,661 in the same period of 2012. The increase was mainly attributable to the expenses related to The Gourmet Wing company event and marketing expenses and the increase in consulting fees.
 
Liquidity and Capital Resources

For the three months ended March 31, 2013, we used ($263,582) in cash flow for operating activities compared to the generation of $7,197 in cash flow for the three months ended March 31, 2012. for a number of reasons.  The Company issued stock for services in the amount of $81,000 in the quarter.  The Company recorded no change in contract receivables, in billings in excess of costs, or accounts receivable-other.  The Company also recorded a decrease of $5,209 in prepaids, a decrease of $61,402  in accounts payable, and a decrease of $28,593 in other current liabilities, all of which impacted cash used by operating activities.  Intangible assets were purchased in the amount of $3,566.   Financing activities generated $273,332 primarily from net proceeds from the sale of stock.
 
The Company has no long term debt outstanding at either March 31, 2013 or December 31, 2012.
 
Cash and cash equivalents were $24,737 as of March 31, 2013 compared to $18,553 as of December 31, 2012.
 
 
We have no material commitments for capital expenditures and know of no trends, demands, commitments, or events that will result in our liquidity changing in a material way for the foreseeable future.
 
Off-Balance Sheet Arrangements
 
We do not have any off balance sheet arrangements
 
Inflation
 
Inflation has not had a material impact on our business and we do not expect inflation to have an impact on our business in the near future
 
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
This item is not applicable as we are currently considered a smaller reporting company.
 
ITEM 4T.CONTROLS AND PROCEDURES
 
Evaluation of Disclosure Controls and Procedures
 
Our management, with the participation of our principal executive and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) as of the end of the period covered by this report.  Based on that evaluation, our principal executive and principal financial officer concluded that our disclosure controls and procedures as of the end of the period covered by this report were not effective such that the information required to be disclosed by us in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our principal executive and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
 
Internal Control over Financial Reporting

Management’s Report on Internal Control over Financial Reporting  

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) for the Company.  Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States.  Because of its inherent limitations, internal control over financial reporting may not prevent nor detect misstatements.  Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.

Our internal controls framework is based on the criteria set forth in the Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and includes those policies and procedures that: (i) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; (ii) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Based on such criteria, our management, with the participation of our principal executive and principal financial officer, evaluated the effectiveness of the Company’s internal control over financial reporting as of March 31, 2013, and concluded that, as of March 31, 2013 and 2012, our internal control over financial reporting was not effective.

Management's assessment report was not subject to attestation by the Company's independent registered public accounting firm and as such, no attestation was performed pursuant to SEC Final Rule Release Nos. 33-8934; 34-58028.

Changes in Internal Control over Financial Reporting  

There has been no change in our internal control over financial reporting that occurred in three months ended March 31, 2013 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
 
 
PART II--OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.  The Company is involved in a possible legal action regarding an account payable in the amount of $13,500 in dispute.  

ITEM 1A. RISK FACTORS
 
Not applicable.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

On January 8, 2013, the Company sold 2,500,000 shares of common stock at $.03 per share under a private placement to an unrelated third party for total proceeds of $75,000.  The proceeds were used for general working capital.

On January 11, 2013, the Company sold 1,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $25,000.  The proceeds were used for general working capital.

On January 16, 2013, the Company sold 3,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $58,113.  The proceeds were used for general working capital.

On January 23, 2013, the Company issued 1,455,820 shares of common stock at $.08 per share in cancellation of debt in the amount of $116,134.

On January 29, 2013, the Company sold 10,000,000 shares of common stock at $.01 per share under a private placement to an unrelated third party for total proceeds of $100,000.  The proceeds were used for general working capital.

On January 30, 2013, the Company issued 200,000 shares of common stock valued at $6,000 for business consulting services.

On January 30, 2013, the Company sold 200,000 shares of common stock at $.03 per share under a private placement to an unrelated third party for total proceeds of $6,000.  The proceeds were used for general working capital.

On January 31, 2013, the Company sold 833,334 shares of common stock at $.03 per share under a private placement to an unrelated third party for total proceeds of $25,000.  The proceeds were used for general working capital.

On February 26, 2013, the Company issued 1,500,000 shares of common stock valued at $75,000 for prepaid legal services.

Issuer Purchases of Equity Securities

We did not repurchase any of our securities during the quarter ended March 31, 2013.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES
 
Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS.

Exhibit Number
Description
31.1
 
Certification of Chief Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2
 
Certification of Chief Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1
 
Certification of Chief Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2
 
Certification of Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ENERGY EDGE TECHNOLOGIES CORPORATION
(Registrant)
        
By:  
 /s/ James Boyd  
   James Boyd
 
 Chief Executive Officer, President, and Director


Date: May 30, 2013
 
 
8

 
EX-31.1 2 ex311.htm EXHIBIT 31.1 ex311.htm
EXHIBIT 31.1

SECTION 302 CERTIFICATION
 
I, James Boyd, certify that: 
 
1.  
I have reviewed this quarterly report on Form 10-Q of Energy Edge Technologies Corporation;
 
 
2.  
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
 
3.  
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
 
4.  
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
 
 
a.  
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
b.  
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 
c.  
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
 
 
5.  
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
 
 
a.  
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
 
 
b.  
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 

   /s/ James Boyd
Date: May 30, 2013
James Boyd
Chief Executive Officer and Director

 
 

 

EX-31.2 3 ex312.htm EXHIBIT 31.2 ex312.htm
EXHIBIT 31.2
 
SECTION 302 CERTIFICATION 
 
I, James Boyd, certify that: 
 
 
1.  
I have reviewed this quarterly report on Form 10-Q of Energy Edge Technologies Corporation;
 
 
2.  
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
 
3.  
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
 
4.  
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
 
 
a.  
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
b.  
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 
c.  
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
 
 
5.  
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
 
 
a.  
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
 
 
b.  
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 

 /s/ James Boyd
Date: May 30, 2013
James Boyd
Chief Financial Officer

 
 

 

EX-32.1 4 ex321.htm EXHIBIT 32.1 ex321.htm
EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002 
 
The undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that this Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of Energy Edge Technologies Corporation. 
 
 /s/ James Boyd
Date: May 30, 2013
James Boyd
Chief Executive Officer and President  

 
 

 

EX-32.2 5 ex322.htm EXHIBIT 32.2 ex322.htm
EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002 
 
The undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that this Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of Energy Edge Technologies Corporation. 
 
 /s/ James Boyd
Date: May 30, 2013
James Boyd
Chief Financial Officer  

 
 

 

EX-101.INS 6 eedg-20130331.xml XBRL INSTANCE DOCUMENT 0.00001 0.00001 250000000 250000000 100357026 78667872 100357026 78667872 2240 146071 2521 117987 -281 28084 17166 6088 100919 10727 19534 4020 2000 119375 19636 258994 40471 -259275 -12387 -950 -1274 -260225 -13661 50408 -209817 -13661 -0.00 -0.00 94364613 82711205 0 <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 1 &#150; NATURE OF OPERATIONS</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Energy Edge Technologies Corporation (&#147;Energy Edge&#148;, &#147;EEDG&#148;, &#147;Energy Edge Solutions&#148;, &#147;EES&#148;, The Gourmet Wing Company, Inc.&#148;, &#147;The Gourmet Wing Company&#148;, &#147;TGWC&#148; and the &#147;Company&#148;) was incorporated in New Jersey in January, 2004.&#160; Energy Edge Technologies Corporation is comprised of two subsidiaries; Energy Edge Solutions and The Gourmet Wing Company, Inc</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Energy Edge Solutions (EES) provides energy engineering and services specializing in the development and implementation of advanced, turnkey projects to reduce energy losses and increase the efficiency of new and existing buildings.&nbsp; The Company is comprised of professional and industrial engineers, Leadership in Energy and Environmental Design (&#147;LEED&#148;) Accredited Professionals, and Green Building Coalition Certifying Agents.&nbsp; Energy Edge is a Clean Energy Pay for Performance Partner and a Smart Start Building Trade Ally.&nbsp; EES&#146; custom designed projects are developed using proprietary methods and maximize energy savings by treating an entire facility based on its unique features and electricity and gas usage.&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>EES applies&nbsp;a whole facility approach to energy cost reduction by applying different technologies and engineering approaches to treat most of the various electrical and gas consuming loads across facility such as lighting, HVAC, refrigeration, and production equipment.&nbsp; The energy projects developed and implemented by EES are ideal for virtually any type of facility and have successfully resulted in tremendous savings in manufacturing plants, hospitals, entertainment venues, office buildings, restaurants, warehouses, etc. &nbsp;&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>EES&#146; revenues come primarily from engineering survey work and turnkey energy projects where EES takes responsibility for equipment procurement, installation labor, utility rebates, tax incentives, pre and post survey work, waste removal, certifications, and ongoing measurement and verification of results.&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Gourmet Wing Company, Inc. (TGWC) is a newly formed combined fast casual restaurant company in the chicken wing segment and restaurant management company. TGWC is primarily engaged in the business of developing and subsequently managing, licensing, operating, developing and franchising a broad portfolio of restaurant and food concepts.&#160; </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>TGWC revenues will primarily be derived from management fees, royalty fees, licensing fees and franchise fees.&nbsp;&nbsp;TGWC will also sell food, sauces, mixes and other supplies to its franchisees/licensees.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 2 &#150; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u><font lang="EN-CA">Basis of Consolidation</font></u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font lang="EN-CA">The consolidated financial statements include the accounts of Energy Edge Technologies Corporation, Dry Fried Wing Company, and Energy Edge Solutions, Inc.(collectively, the &#147;Company&#148;). All material intercompany transactions have been eliminated.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Basis of Accounting</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Energy Edge uses the accrual basis of accounting for financial statement reporting. Accordingly, revenues are recognized when products are delivered and services are rendered, and expenses are recognized when the obligation is incurred. The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. The Company has selected a December 31 year end.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'><i><u>Basis of Presentation</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (&#147;SEC&#148;), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company&#146;s Form 10-K filed with the SEC as of and for the year ended December 31, 2012.&#160; In the opinion of management, all adjustments necessary for the financial statements to be not misleading for the interim periods presented have been reflected herein.&#160; The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Fair Value of Financial Instruments</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company's financial instruments consist of cash and cash equivalents, receivables, prepaid consulting fees, accounts payable, accrued expenses and other current liabilities, and loans payable &#150;related parties. The carrying amounts of these financial instruments approximate fair value due either to length of maturity or interest rates that approximate prevailing rates unless otherwise disclosed in these financial statements.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Contract Receivables</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Contract receivables are recorded when invoices are issued and are presented in the balance sheet net of the allowance for doubtful accounts. The Company extends credit to customers in the normal course of business. The Company continually monitors contract receivables. When we are aware of circumstances that may impair a specific customer&#146;s ability to meet its financial obligations, we record a specific allowance to reduce the net recognized receivable to the amount we believe will be collected. We write off uncollectible amounts against the allowance when we have exhausted our collection efforts.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Use of Estimates </u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances. However, actual results may differ from the estimates.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Concentrations of Credit Risk</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Income Taxes</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Income taxes are computed using the asset and liability method.&#160; Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.&#160; A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company&#146;s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of March 31, 2013, there have been no interest or penalties incurred on income taxes.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Research and Development</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company has not incurred any research and development costs to date.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Non-Controlling Interests</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>As of December 31, 2012, the non-controlling interests balances were ($39,965), due to minority ownership of 35% in Gourmet Wing Company, and 49% in Energy Edge Solutions, Inc. As of March 31, 2013, the non-controlling interest balance was $393 due to the minority ownership of 49% in Energy Edge Solutions, Inc. On March 31, 2013, the Company acquired the minority interest in Gourmet Wing Company, bringing their ownership of Gourmet to <font style='display:none'>100%</font>.&#160; </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Revenue Recognition</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. That method is used because management considers total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation. Selling, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income, which are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements, are accounted for as changes in estimates in the current period. No profit is recognized on change orders until they have been approved by the customer.</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The asset, &#147;Costs and estimated earnings in excess of billings on uncompleted contracts,&#148; represents revenues recognized in excess of amounts billed. The liability, &#147;Billings in excess of costs and estimated earnings on uncompleted contracts,&#148; represents billings in excess of revenues recognized.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Stock-Based Compensation</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, <i>Compensation &#150; Stock Compensation </i>which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values.&nbsp; The&nbsp;fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company follows ASC Topic 505-50, formerly EITF 96-18, &#147;<i>Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services</i>,&#148; for stock options and warrants issued to consultants and other non-employees.&nbsp;&nbsp;In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined.&nbsp;&nbsp; </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Basic Income (Loss) Per Share</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Basic income (loss) per share is calculated by dividing the Company&#146;s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company&#146;s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of March 31, 2013.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Recent Accounting Pronouncements</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Energy Edge does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company&#146;s results of operations, financial position, or cash flows.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Reclassifications</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 3 -- ACCOUNTS RECEIVABLE</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts receivable other consists of $200 from current period sales of Gourmet Wings Company plus $348 from Gourmet Wings Company sales in a prior period.&#160; $200 of such receivables are considered uncollectible and were written off in the current period.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 4 -- OTHER ASSETS</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Other assets represents the aggregate costs of $3,566 incurred by Gourmet Wings Company in the current period related to the development of sauce recipes.&#160; As the asset will be useful for a period of indeterminant length in the future, no amortization has been recognized.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 5 &#150; PREPAID EXPENSES</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prepaid expenses consisted of the following at March 31, 2013 December 31, 2012:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:4.0pt'> <td width="373" valign="top" style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> </td> <td width="89" valign="bottom" style='width:67.1pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>March 31, 2013</b></p> </td> <td width="85" valign="bottom" style='width:64.1pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>December 31, 2012</b></p> </td> </tr> <tr style='height:11.9pt'> <td width="373" valign="bottom" style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.9pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prepaid project expenses</p> </td> <td width="89" valign="top" style='width:67.1pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:11.9pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160; 29,950</p> </td> <td width="85" valign="top" style='width:64.1pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:11.9pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160;&#160;&#160; 29,950</p> </td> </tr> <tr style='height:3.95pt'> <td width="373" valign="bottom" style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt;height:3.95pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prepaid consulting expense</p> </td> <td width="89" valign="top" style='width:67.1pt;padding:0in 5.4pt 0in 5.4pt;height:3.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>265,283</p> </td> <td width="85" valign="top" style='width:64.1pt;padding:0in 5.4pt 0in 5.4pt;height:3.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>270,492</p> </td> </tr> <tr style='height:12.65pt'> <td width="373" valign="bottom" style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.65pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total prepaid expenses</p> </td> <td width="89" valign="top" style='width:67.1pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.65pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160; 295,233</p> </td> <td width="85" valign="top" style='width:64.1pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.65pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160; 300,442</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Prepaid Project Expenses</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prepaid project expenses consist of monies expended for project equipment for a project temporarily put on hold.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Prepaid Consulting</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company has retained a number of consultants. These consultants are paid in cash and/or issuance of Company stock. Consultants were issued 1,700,000 shares of stock valued at $81,000 for the three months ended March 31, 2013. The consulting fees are being amortized over the terms of the contracts. As of March 31, 2013, and December 31, 2012, $265,283 and $270,492 respectively, remained in prepaid consulting.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 6 &#150; PROPERTY AND EQUIPMENT</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company&#146;s policy is to depreciate the cost of property and equipment over the estimated useful lives of the assets by use of the straight-line method. The office equipment presently owned by the Company is being depreciated over an estimated useful life of five years. Depreciation expense for the three months ended March 31, 2013 and 2012 was $429 and $430, respectively.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 7 &#150; ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accrued expenses and other current liabilities consisted of the following at March 31, 2013 and December 31, 2012:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:4.2pt'> <td width="357" valign="top" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.2pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.2pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>March 31, 2013</b></p> </td> <td width="82" valign="bottom" style='width:61.3pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.2pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>December 31, 2012</b></p> </td> </tr> <tr style='height:13.2pt'> <td width="357" valign="bottom" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.2pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Credit card balances</p> </td> <td width="86" valign="top" style='width:64.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160; 29,003</p> </td> <td width="82" valign="top" style='width:61.3pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160; 28,596</p> </td> </tr> <tr style='height:4.15pt'> <td width="357" valign="bottom" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accrue professional fees</p> </td> <td width="86" valign="top" style='width:64.2pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>4,500</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>13,500</p> </td> </tr> <tr style='height:4.15pt'> <td width="357" valign="bottom" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accrued payroll</p> </td> <td width="86" valign="top" style='width:64.2pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>-</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>20,000</p> </td> </tr> <tr style='height:4.15pt'> <td width="357" valign="bottom" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Payroll taxes payable</p> </td> <td width="86" valign="top" style='width:64.2pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>48,652</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>48,652</p> </td> </tr> <tr style='height:4.15pt'> <td width="357" valign="bottom" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Sales tax payable</p> </td> <td width="86" valign="top" style='width:64.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>15,082</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>15,082</p> </td> </tr> <tr style='height:13.2pt'> <td width="357" valign="bottom" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.2pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total accrued expenses&#160; and other current liabilities</p> </td> <td width="86" valign="top" style='width:64.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160; 97,237</p> </td> <td width="82" valign="top" style='width:61.3pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:13.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160; 125,830</p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 8 &#150; RELATED PARTY TRANSACTIONS</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Related party loans totaling $15,615 and $30,696 at March 31, 2013 and December 31, 2012, respectively, are owed to various related parties of the Company for reimbursement of expenses incurred on behalf of the Company. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Related party loans are unsecured, non-interest bearing and have no specific terms of repayment unless otherwise noted.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 9 -- BUSINESS SEGMENTS</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company is made up of three entities in which Energy Edge Technologies Corporation is the parent entity.&#160; The Company owned a sixty-five percent interest in Gourmet Wings Company during the current quarter, but acquired the remaining thirty-five percent of the stock of Gourmet Wings Company as of March 31, 2013.&#160; Fifty-one percent of the outstanding stock of Energy Edge Solutions, Inc. is owned by the Company.&#160; Energy Edge Solutions, Inc. had virtually no operating activity during the current quarter.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The balance sheet and income statement information of each entity for the current quarter is presented in US Dollars as follows:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="80%" style='width:80.0%'> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;padding:0in 0in 1.5pt 0in'></td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>EEDG</b></p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>TGWC</b></p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>EES</b></p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>Total</b></p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Current Assets</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>290,233</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>30,074</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>11</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>320,318</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Fixed Assets</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>4,616</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>4,616</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Intangibles</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>3,566</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>3,566</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0in 0in 3.0pt 36.7pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Total Assets</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>294,849</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>33,640</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>11</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>328,500</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Current Liabilities</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>276,936</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,600</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>114</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>278,650</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Intercompany</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(308,093)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>307,678</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>415</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Shareholders' Equity</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>326,006</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(275,638)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(518)</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>49,850</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0in 0in 3.0pt 18.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Total Liabilities and Shareholders' Equity</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>294,849</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>33,640</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>11</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>328,500</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>&nbsp; </p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="80%" style='width:80.0%'> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>&nbsp; </p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>&nbsp; </p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>&nbsp; </p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Revenues</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>2,040</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>200</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>2,240</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Costs of Sales</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(2,471)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(50)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(2,521)</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0in 0in 0in 36.7pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Gross Profit</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(431)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>150</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(281)</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Operating Expenses</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(114,821)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(144,173)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(258,994)</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Other Expenses</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(950)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(950)</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0in 0in 0in 18.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Net (loss) before non-controlling interest</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(116,202)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(144,023)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(260,225)</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Non-controlling interest</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>50,408</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>50,408</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0in 0in 3.0pt 30.6pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Net (loss) from operations</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(65,794)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(144,023)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(209,817)</p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 10 &#150; CAPITAL STOCK</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On March 26, 2010, the Company amended its Articles of Incorporation to increase the number of authorized shares to 100,000,000 with a par value of $.00001.&nbsp;&nbsp;On November 14, 2012, the Company amended its Articles of Incorporation to increase the number of authorized shares to 250,000,000 with a par value of $.00001.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>During 2011, the Company sold 30,000 shares of common stock at $.10 per share under a private placement to an unrelated third party for total proceeds of $3,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>During 2011, the Company issued 28,270,000 shares of stock valued at $48,200 to consultants. The shares were valued at prices ranging from $.0015 to $.10 per share.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>During 2011, the Company issued 3,974,380 shares of stock valued at $138,838 for legal services. The shares were valued based on the value of the legal services provided.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On January 23, 2012, the Company issued 1,500,000 shares of stock valued at $15,000 for business consulting services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On May 3, 2012, the Company issued 2,500,000 shares of stock valued at $39,375 for legal services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On May 7, 2012, the Company issued 3,000,000 shares of stock valued at $105,000 for business consulting services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On May 14, 2012, the Company issued 2,000,000 shares of stock valued at $52,500 for business consulting services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On May 17, 2012, the Company sold 1,000,000 shares of common stock at $.01 per share under a private placement to an unrelated third party for total proceeds of $10,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On May 25, 2012, 10,000 shares of stock issued for consulting services in 2011 were returned to the Company.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On June 5, 2012, the Company sold 500,000 shares of common stock at $.01 per share under a private placement to an unrelated third party for total proceeds of $5,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On June 6, 2012, the Company sold 1,666,667 shares of common stock at $.0075 per share under a private placement to an unrelated third party for total proceeds of $12,500.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On June 6, 2012, the Company issued 500,000 shares of stock valued at $50,000 for business consulting services</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On June 6, 2012, the Company sold 2,000,000 shares of common stock at $.015 per share under a private placement to an unrelated third party for total proceeds of $30,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On June 17, 2012, the Company issued 200,000 shares of stock valued at $9,000 for business consulting services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On July 20, 2012, the Company issued 500,000 shares of stock valued at $65,000 for business consulting services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On August 8, 2012, the Company issued 500,000 shares of stock valued at $50,000 for business consulting services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On August 9, 2012, the Company issued 1,000,000 shares of stock valued at $90,000 for business consulting services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On August 14, 2012, the Company issued 1,000,000 shares of stock valued at $67,500 for legal services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On August 28, 2012, 2,000,000 shares of stock issued for consulting services in 2011 were returned to the Company.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On October 26, 2012, the Company sold 750,000 shares of common stock at $.0073 per share under a private placement to an unrelated third party for total proceeds of $5,500.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On November 21, 2012, 28,000,000 shares of stock previously held by former officers of the Company were surrendered.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On November 29, 2012, the Company sold 1,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $25,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On November 29, 2012, the Company issued 2,000,000 shares of stock valued at $80,000 for business consulting services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On December 10, 2012, the Company issued 300,000 shares of stock valued at $15,000 for business consulting services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On December 12, 2012, the Company issued 1,000,000 shares of stock valued at $30,000 for business consulting services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On December 21, 2012, the Company sold 2,000,000 shares of common stock at $.005 per share under a private placement to an unrelated third party for total proceeds of $10,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On December 27, 2012, the Company sold 1,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $25,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>As of December 31, 2012, the Company had no warrants or options outstanding.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>On January 8, 2013, the Company sold 2,500,000 shares of common stock at $.03 per share under a private placement to an unrelated third party for total proceeds of $75,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>On January 11, 2013, the Company sold 1,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $25,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>On January 16, 2013, the Company sold 3,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $58,113.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>On January 23, 2013, the Company issued 1,455,820 shares of common stock at $.08 per share in cancellation of debt in the amount of $116,134.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>On January 29, 2013, the Company sold 10,000,000 shares of common stock at $.01 per share under a private placement to an unrelated third party for total proceeds of $100,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>On January 30, 2013, the Company issued 200,000 shares of common stock valued at $6,000 for business consulting services.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>On January 30, 2013, the Company sold 200,000 shares of common stock at $.03 per share under a private placement to an unrelated third party for total proceeds of $6,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>On January 31, 2013, the Company sold 833,334 shares of common stock at $.03 per share under a private placement to an unrelated third party for total proceeds of $25,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>On February 26, 2013, the Company issued 1,500,000 shares of common stock valued at $75,000 for prepaid legal services.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 11 &#150; INCOME TAXES</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>For the three month periods ended March 31, 2013 and 2012, the Company has incurred a net loss and, therefore, has no tax liability.&#160; The net deferred tax asset was generated by the loss carry-forward of approximately $3,050,400 and will expire beginning in 2030.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The provision for federal income tax consists of the following at March 31:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:4.05pt'> <td width="270" valign="top" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.05pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>March31, 2013</p> </td> <td width="90" valign="bottom" style='width:67.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>March 31, 2012</p> </td> </tr> <tr align="left"> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Federal income tax benefit attributable to:</p> </td> <td width="102" valign="bottom" style='width:76.4pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>&nbsp;</p> </td> <td width="90" valign="bottom" style='width:67.4pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:4.0pt'> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Current operations</p> </td> <td width="102" valign="bottom" style='width:76.4pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160;&#160;&#160;&#160; 89,700</p> </td> <td width="90" valign="bottom" style='width:67.4pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160; 152,000</p> </td> </tr> <tr style='height:4.0pt'> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Less: valuation allowance</p> </td> <td width="102" valign="bottom" style='width:76.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(89,700)</p> </td> <td width="90" valign="bottom" style='width:67.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(152,000)</p> </td> </tr> <tr align="left"> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net provision for Federal income taxes</p> </td> <td width="102" valign="bottom" style='width:76.4pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>~</p> </td> <td width="90" valign="bottom" style='width:67.4pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>~</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr align="left"> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>March 31, 2013</p> </td> <td width="90" valign="bottom" style='width:67.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>December 31, 2012</p> </td> </tr> <tr align="left"> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Deferred tax asset attributable to:</p> </td> <td width="102" valign="bottom" style='width:76.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>&nbsp;</p> </td> <td width="90" valign="bottom" style='width:67.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net operating loss carryover</p> </td> <td width="102" valign="bottom" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$1,030,300</p> </td> <td width="90" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160; 940,600</p> </td> </tr> <tr align="left"> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Less: valuation allowance</p> </td> <td width="102" valign="bottom" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(1,030,300)</p> </td> <td width="90" valign="bottom" style='width:67.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(940,600)</p> </td> </tr> <tr align="left"> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net deferred tax asset</p> </td> <td width="102" valign="bottom" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0</p> </td> <td width="90" valign="bottom" style='width:67.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>As of March 31, 2013, the Company had net operating loss carry forwards of approximately $3,050,400 that may be available to reduce future years&#146; taxable income through 2033. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $3,050,400 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 12 &#150; COMMITMENTS AND CONTINGENCIES</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company neither owns nor leases any real property as of March 31, 2013. An officer has provided office services without charge.&nbsp; There is no obligation for the officer to continue this arrangement.&nbsp; Such costs are immaterial to the financial statements and accordingly are not reflected herein.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 13 &#150; <strong>GOING CONCERN</strong></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company has limited working capital, and has suffered significant losses from operations.&#160; These factors create substantial doubt about the Company&#146;s ability to continue as a going concern.&#160; The financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The ability of Energy Edge Technologies Corporation to continue as a going concern is dependent on the Company generating cash from the sale of its common stock, obtaining debt financing, attaining future profitable operations, acquiring or merging with a profitable company, and/or developing successful business operations in other industries through investment in related party ventures.&#160; Management&#146;s plans include selling its equity securities and obtaining debt financing to fund its capital requirements; however, there can be no assurance the Company will be successful in these efforts.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 14 &#150; SUBSEQUENT EVENTS</b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>In accordance with ASC 855-10, the Company <strong><font style='font-weight:normal'>has analyzed its operations subsequent to March 31, 2013 to the date these financial statements were issued, and reports the following:</font></strong></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>During the fiscal year ended December 31, 2012, the Company acquired sixty-five percent (65%) of the capital stock of The Dry Fried Wing Company.&#160; On March 31, 2013, the Company acquired the remaining thirty-five percent (35%) of such stock.&#160; On April 5, 2013 the Company officially changed the name of The Dry Fried Wing Company to The Gourmet Wing Company, Inc.&#160; The Gourmet Wing Company is primarily engaged in the business of licensing, operating, developing and franchising a system of distinctive quick-service and fast casual restaurants in the chicken wing segment.&#160; The Company has supplied a significant amount of capital to The Gourmet Wing Company and expects to continue to do so in the future in addition to supplying capital to Energy Edge Solutions.&#160; </p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>In May&#160; 2013, we entered into an exclusive agreement with CRISP Watermelon Drink, LLC for the wholesale distribution of Cu'i (pronounced &quot;swee&quot;) a 100% all natural water melon drink throughout the United States.&nbsp; </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u><font lang="EN-CA">Basis of Consolidation</font></u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font lang="EN-CA">The consolidated financial statements include the accounts of Energy Edge Technologies Corporation, Dry Fried Wing Company, and Energy Edge Solutions, Inc.(collectively, the &#147;Company&#148;). All material intercompany transactions have been eliminated.</font></p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Basis of Accounting</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Energy Edge uses the accrual basis of accounting for financial statement reporting. Accordingly, revenues are recognized when products are delivered and services are rendered, and expenses are recognized when the obligation is incurred. The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. The Company has selected a December 31 year end.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'><i><u>Basis of Presentation</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (&#147;SEC&#148;), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company&#146;s Form 10-K filed with the SEC as of and for the year ended December 31, 2012.&#160; In the opinion of management, all adjustments necessary for the financial statements to be not misleading for the interim periods presented have been reflected herein.&#160; The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Fair Value of Financial Instruments</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company's financial instruments consist of cash and cash equivalents, receivables, prepaid consulting fees, accounts payable, accrued expenses and other current liabilities, and loans payable &#150;related parties. The carrying amounts of these financial instruments approximate fair value due either to length of maturity or interest rates that approximate prevailing rates unless otherwise disclosed in these financial statements.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Contract Receivables</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Contract receivables are recorded when invoices are issued and are presented in the balance sheet net of the allowance for doubtful accounts. The Company extends credit to customers in the normal course of business. The Company continually monitors contract receivables. When we are aware of circumstances that may impair a specific customer&#146;s ability to meet its financial obligations, we record a specific allowance to reduce the net recognized receivable to the amount we believe will be collected. We write off uncollectible amounts against the allowance when we have exhausted our collection efforts.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Use of Estimates </u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances. However, actual results may differ from the estimates.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Concentrations of Credit Risk</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Income Taxes</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Income taxes are computed using the asset and liability method.&#160; Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.&#160; A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company&#146;s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of March 31, 2013, there have been no interest or penalties incurred on income taxes.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Research and Development</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company has not incurred any research and development costs to date.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Non-Controlling Interests</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>As of December 31, 2012, the non-controlling interests balances were ($39,965), due to minority ownership of 35% in Gourmet Wing Company, and 49% in Energy Edge Solutions, Inc. As of March 31, 2013, the non-controlling interest balance was $393 due to the minority ownership of 49% in Energy Edge Solutions, Inc. On March 31, 2013, the Company acquired the minority interest in Gourmet Wing Company, bringing their ownership of Gourmet to <font style='display:none'>100%</font>.&#160; </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Revenue Recognition</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. That method is used because management considers total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation. Selling, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income, which are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements, are accounted for as changes in estimates in the current period. No profit is recognized on change orders until they have been approved by the customer.</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The asset, &#147;Costs and estimated earnings in excess of billings on uncompleted contracts,&#148; represents revenues recognized in excess of amounts billed. The liability, &#147;Billings in excess of costs and estimated earnings on uncompleted contracts,&#148; represents billings in excess of revenues recognized.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Stock-Based Compensation</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, <i>Compensation &#150; Stock Compensation </i>which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values.&nbsp; The&nbsp;fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company follows ASC Topic 505-50, formerly EITF 96-18, &#147;<i>Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services</i>,&#148; for stock options and warrants issued to consultants and other non-employees.&nbsp;&nbsp;In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined.&nbsp;&nbsp; </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Basic Income (Loss) Per Share</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Basic income (loss) per share is calculated by dividing the Company&#146;s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company&#146;s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of March 31, 2013.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Recent Accounting Pronouncements</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Energy Edge does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company&#146;s results of operations, financial position, or cash flows.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i><u>Reclassifications</u></i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:4.0pt'> <td width="373" valign="top" style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> </td> <td width="89" valign="bottom" style='width:67.1pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>March 31, 2013</b></p> </td> <td width="85" valign="bottom" style='width:64.1pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>December 31, 2012</b></p> </td> </tr> <tr style='height:11.9pt'> <td width="373" valign="bottom" style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.9pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prepaid project expenses</p> </td> <td width="89" valign="top" style='width:67.1pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:11.9pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160; 29,950</p> </td> <td width="85" valign="top" style='width:64.1pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:11.9pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160;&#160;&#160; 29,950</p> </td> </tr> <tr style='height:3.95pt'> <td width="373" valign="bottom" style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt;height:3.95pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prepaid consulting expense</p> </td> <td width="89" valign="top" style='width:67.1pt;padding:0in 5.4pt 0in 5.4pt;height:3.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>265,283</p> </td> <td width="85" valign="top" style='width:64.1pt;padding:0in 5.4pt 0in 5.4pt;height:3.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>270,492</p> </td> </tr> <tr style='height:12.65pt'> <td width="373" valign="bottom" style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.65pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total prepaid expenses</p> </td> <td width="89" valign="top" style='width:67.1pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.65pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160; 295,233</p> </td> <td width="85" valign="top" style='width:64.1pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.65pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160; 300,442</p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:4.2pt'> <td width="357" valign="top" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.2pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> </td> <td width="86" valign="bottom" style='width:64.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.2pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>March 31, 2013</b></p> </td> <td width="82" valign="bottom" style='width:61.3pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.2pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>December 31, 2012</b></p> </td> </tr> <tr style='height:13.2pt'> <td width="357" valign="bottom" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.2pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Credit card balances</p> </td> <td width="86" valign="top" style='width:64.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160; 29,003</p> </td> <td width="82" valign="top" style='width:61.3pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160; 28,596</p> </td> </tr> <tr style='height:4.15pt'> <td width="357" valign="bottom" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accrue professional fees</p> </td> <td width="86" valign="top" style='width:64.2pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>4,500</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>13,500</p> </td> </tr> <tr style='height:4.15pt'> <td width="357" valign="bottom" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accrued payroll</p> </td> <td width="86" valign="top" style='width:64.2pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>-</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>20,000</p> </td> </tr> <tr style='height:4.15pt'> <td width="357" valign="bottom" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Payroll taxes payable</p> </td> <td width="86" valign="top" style='width:64.2pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>48,652</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>48,652</p> </td> </tr> <tr style='height:4.15pt'> <td width="357" valign="bottom" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Sales tax payable</p> </td> <td width="86" valign="top" style='width:64.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>15,082</p> </td> <td width="82" valign="top" style='width:61.3pt;padding:0in 5.4pt 0in 5.4pt;height:4.15pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>15,082</p> </td> </tr> <tr style='height:13.2pt'> <td width="357" valign="bottom" style='width:267.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.2pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total accrued expenses&#160; and other current liabilities</p> </td> <td width="86" valign="top" style='width:64.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160; 97,237</p> </td> <td width="82" valign="top" style='width:61.3pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:13.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160; 125,830</p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="80%" style='width:80.0%'> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;padding:0in 0in 1.5pt 0in'></td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>EEDG</b></p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>TGWC</b></p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>EES</b></p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'><b>Total</b></p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Current Assets</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>290,233</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>30,074</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>11</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>320,318</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Fixed Assets</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>4,616</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>4,616</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Intangibles</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>3,566</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>3,566</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0in 0in 3.0pt 36.7pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Total Assets</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>294,849</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>33,640</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>11</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>328,500</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Current Liabilities</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>276,936</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>1,600</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>114</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>278,650</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Intercompany</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(308,093)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>307,678</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>415</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Shareholders' Equity</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>326,006</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(275,638)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(518)</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>49,850</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0in 0in 3.0pt 18.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Total Liabilities and Shareholders' Equity</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>294,849</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>33,640</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>11</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>328,500</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>&nbsp; </p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="80%" style='width:80.0%'> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>&nbsp; </p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>&nbsp; </p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>&nbsp; </p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Revenues</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>2,040</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>200</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>2,240</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Costs of Sales</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(2,471)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(50)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(2,521)</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0in 0in 0in 36.7pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Gross Profit</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(431)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>150</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(281)</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Operating Expenses</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(114,821)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(144,173)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(258,994)</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Other Expenses</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(950)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(950)</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0in 0in 0in 18.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Net (loss) before non-controlling interest</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(116,202)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(144,023)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(260,225)</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Non-controlling interest</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>50,408</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>50,408</p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.06%;background:white;padding:0in 0in 3.0pt 30.6pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Net (loss) from operations</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(65,794)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(144,023)</p> </td> <td width="12%" valign="bottom" style='width:12.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="12%" valign="bottom" style='width:12.22%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>(209,817)</p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:4.05pt'> <td width="270" valign="top" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.05pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>March31, 2013</p> </td> <td width="90" valign="bottom" style='width:67.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>March 31, 2012</p> </td> </tr> <tr align="left"> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Federal income tax benefit attributable to:</p> </td> <td width="102" valign="bottom" style='width:76.4pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>&nbsp;</p> </td> <td width="90" valign="bottom" style='width:67.4pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:4.0pt'> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Current operations</p> </td> <td width="102" valign="bottom" style='width:76.4pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160;&#160;&#160;&#160; 89,700</p> </td> <td width="90" valign="bottom" style='width:67.4pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$&#160;&#160;&#160; 152,000</p> </td> </tr> <tr style='height:4.0pt'> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Less: valuation allowance</p> </td> <td width="102" valign="bottom" style='width:76.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(89,700)</p> </td> <td width="90" valign="bottom" style='width:67.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:4.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(152,000)</p> </td> </tr> <tr align="left"> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net provision for Federal income taxes</p> </td> <td width="102" valign="bottom" style='width:76.4pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>~</p> </td> <td width="90" valign="bottom" style='width:67.4pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>~</p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr align="left"> <td width="270" valign="bottom" style='width:202.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>March 31, 2013</p> </td> <td width="90" valign="bottom" style='width:67.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>December 31, 2012</p> </td> </tr> <tr align="left"> <td 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Investment 16 Investment Type Categorization Accrued Liabilities and Other Liabilities Accrued Liabilities and Other Liabilities Prepaid project expenses Prepaid project expenses Use of Estimates Contract Receivables Contract Receivables Policy Text Block Note 12 - Commitments and Contingencies Note 9 -- Business Segments Non-controlling interests {1} Non-controlling interests Statement of Stockholders' Equity LOSS FROM OPERATIONS LOSS FROM OPERATIONS General & administrative expenses Subscription receivable Subscription receivable Total Current Assets Total Current Assets Entity Current Reporting Status Fair Value by Liability Class [Domain] Cash [Member] Trent Daniel [Member] Debt Issued [Member] Debenture 11 [Member] Equipment [Member] Current Operations Investment 28 Investment 18 Investment 1 Property, Plant and Equipment, Type Schedule of Effective Income Tax Rate Reconciliation Note 11 - Income Taxes Cash flows provided by (used in) financing activities Cash flows provided by (used in) financing activities Accounts receivable - other {1} Accounts receivable - other Statement of Cash Flows Net loss Acquisition of non-controlling interest Correction of payroll tax liability Common Stock, shares issued TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Prepaid expenses Prepaid expenses Entity Central Index Key Bradley Melton [Member] Directors Fees [Member] Three Notes Payable [Member] Debenture 15 [Member] Debt Cancellation Investment 22 Investment 6 Non-controlling interests {2} Non-controlling interests Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities Entity Basic Income (loss) Per Share Research and Development Purchase of property and equipment Accounts receivable Shares retired per merger agreement, shares LOSS FROM OPERATIONSAND BEFORE NON-CONTROLLING INTERESTS LOSS FROM OPERATIONS AND BEFORE NON-CONTROLLING INTERESTS Accrued expenses and other current liabilities Other Assets {1} Other Assets Costs and estimated earnings in excess of billings Subsidiary, Sale of Stock [Axis] FormerCEOMember [Member] Long-Term Debt, Note 3 [Member] Debenture 19 [Member] Note Payable, Stacey McBride-Irby [Member] Investment 9 Stock Issued For Legal Services Business Segment Totals Noncontrolling Interest, Ownership Percentage by Parent Schedule of Accrued Liabilities Fair Value of Financial Instruments Prepaid consulting fees Shares returned by consultants, value Share returned to Company by consultants Issuance of shares for cash, shares WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED Common Stock, shares authorized Stockholders' Equity (Deficit) Intangible Assets Property and Equipment - net Property and Equipment - net Current Assets Private Placement [Member] Inez McBride [Member] Related Party [Domain] General Consulting Services [Member] Segment, Business [Domain] Long-Term Debt, Note Payable 3, Common Stock and Warrants Issued [Member] Debenture 23 [Member] Debenture 4 [Member] Range [Domain] Investment 13 Scenario Other Prepaid Expense, Current Energy Edge Solutions Inc Details Issuance of stock in payment of accounts payable Accrued expenses and other current liabilities {1} Accrued expenses and other current liabilities Shares retired per merger agreement, value Issuance of shares for services, value Shares issued for services Professional fees Document and Entity Information Liability Class [Axis] Henderson J. Smith, Jr. [Member] General Consulting Services Member 4 [Member] Marketing Consulting Services [Member] Consulting Agreements 1 [Member] Consulting Contract [Member] Debenture 8 [Member] Short-term Debt, Type Investment 25 Investment 3 Maximum Basis of Consolidation Acquisition of non-controlling interest {1} Acquisition of non-controlling interest Acquisition of non-controlling interest Cash flows provided by (used in) operating activities Cash flows provided by (used in) operating activities Purchase of treasury shares Purchase of treasury shares Subscription Receivable Consulting services Compensation GROSS PROFIT GROSS PROFIT CONTRACT REVENUES Entity Filer Category Amendment Flag Class of Stock [Domain] Wilma Delaney [Member] Business Segments [Axis] March 2011 Note Payable [Member] Debenture 12 [Member] Net Operating Loss Carryover Investment 29 Investment 19 Investment 7 Common Stock Sold To Unrelated Third Party Revenues Non-controlling Interests Note 7 - Accrued Expenses and Other Current Liabilities Net increase (decrease) in cash and cash equivalents Net increase (decrease) in cash and cash equivalents Proceeds from the sale of common stock Adjustments to reconcile net loss to net cash used in operating activities: Issuance of shares for cash, value OPERATING EXPENSES Legal Services Rendered [Member] Long-Term Debt, Note 4 [Member] Debenture 16 [Member] Debenture 1 [Member] Investment 23 Investment 10 Energy Edge (EEDG) Income Taxes CASH FLOWS FROM OPERATING ACTIVITIES Issuance of stock for cancellation of debt, shares TOTAL OPERATING EXPENSES TOTAL OPERATING EXPENSES Income Statement Total Stockholders' Equity (Deficit) Total Stockholders' Equity (Deficit) Stockholders' Equity Stockholders' Equity Accounts payable Current liabilities TOTAL ASSETS TOTAL ASSETS Document Fiscal Year Focus Fair Value by Asset Class [Domain] Corinda Melton and Trent Daniel [Member] Related Party [Axis] Long-Term Debt, Note Payable 4, Common Stock and Warrants Issued [Member] Debenture 20 [Member] Debenture 5 [Member] Legal Services [Member] Deferred Tax Asset Attributable To: Investment 14 Property and Equipment, Depreciation Methods Schedule of Segment Reporting Information, by Segment Basis of Accounting Note 6 - Property and Equipment Note 5 - Prepaid Expenses Note 2 - Summary of Significant Accounting Policies Purchase of intangible assets Costs and estimated earnings in excess of billings on uncompleted contracts Costs and estimated earnings in excess of billings on uncompleted contracts Issuance of shares for legal services, shares Statement {1} Statement Director fees ASSETS Entity Well-known Seasoned Issuer Sale of Stock, Name of Transaction [Domain] Sherman Walker [Member] Major Property Class [Axis] General Consulting Services 2 [Member] Consulting Agreements 2 [Member] Debenture 24 [Member] Debenture 9 [Member] Dry Fried Wing Company [Member] Investment 17 Property, Plant and Equipment, Useful Life Interest paid CASH FLOWS FROM FINANCING ACTIVITIES Billings in excess of costs and estimated earnings on uncompleted contracts {1} Billings in excess of costs and estimated earnings on uncompleted contracts Termination of non-controlling interest Issuance of stock for cancellation of debt, value Acquisition of stock in subsidiaries Equity Component Common stock, $.00001 par value, 250,000,000 shares authorized, 100,357,026 shares issued and outstanding (78,667,872 - December 31, 2012) Entity Public Float EX-101.PRE 11 eedg-20130331_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 12 R39.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 11 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)
3 Months Ended
Mar. 31, 2013
Tables/Schedules  
Schedule of Components of Income Tax Expense (Benefit)

 

 

March31, 2013

March 31, 2012

Federal income tax benefit attributable to:

 

 

Current operations

$       89,700

$    152,000

Less: valuation allowance

(89,700)

(152,000)

Net provision for Federal income taxes

~

~

XML 13 R48.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 8 - Related Party Transactions (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Details    
Due to Related Parties $ 15,615 $ 30,696
XML 14 R46.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 6 - Property and Equipment (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Dec. 31, 2011
Property and Equipment, Depreciation Methods straight-line method      
Depreciation $ 429 $ 430 $ 429 $ 430
Office Equipment
       
Property, Plant and Equipment, Useful Life 5 years      
XML 15 R33.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Basic Income (loss) Per Share (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Basic Income (loss) Per Share

Basic Income (Loss) Per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of March 31, 2013.

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Note 2 - Summary of Significant Accounting Policies: Contract Receivables (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Contract Receivables

Contract Receivables

Contract receivables are recorded when invoices are issued and are presented in the balance sheet net of the allowance for doubtful accounts. The Company extends credit to customers in the normal course of business. The Company continually monitors contract receivables. When we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance to reduce the net recognized receivable to the amount we believe will be collected. We write off uncollectible amounts against the allowance when we have exhausted our collection efforts.

XML 18 R50.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 10 - Capital Stock (Details) (USD $)
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Nov. 14, 2012
Mar. 26, 2010
Mar. 31, 2013
Debt Cancellation
Dec. 31, 2012
Investment 3
Dec. 31, 2012
Investment 4
Dec. 31, 2012
Investment 5
Dec. 31, 2012
Investment 6
Dec. 31, 2012
Investment 7
Mar. 31, 2013
Investment 24
Dec. 31, 2012
Investment 24
Mar. 31, 2013
Investment 8
Dec. 31, 2012
Investment 8
Dec. 31, 2012
Investment 9
Dec. 31, 2012
Investment 10
Dec. 31, 2012
Investment 11
Dec. 31, 2012
Investment 12
Dec. 31, 2012
Investment 13
Dec. 31, 2012
Investment 14
Dec. 31, 2012
Investment 15
Dec. 31, 2012
Investment 16
Mar. 31, 2013
Investment 25
Dec. 31, 2012
Investment 25
Dec. 31, 2012
Investment 17
Mar. 31, 2013
Investment 26
Dec. 31, 2012
Investment 26
Dec. 31, 2012
Investment 18
Dec. 31, 2012
Investment 19
Dec. 31, 2012
Investment 20
Dec. 31, 2012
Investment 21
Dec. 31, 2012
Investment 22
Dec. 31, 2012
Investment 23
Mar. 31, 2013
Investment 27
Mar. 31, 2013
Investment 28
Dec. 31, 2012
Investment 28
Mar. 31, 2013
Investment 29
Dec. 31, 2012
Investment 29
Mar. 31, 2013
Investment 30
Dec. 31, 2012
Investment 30
Mar. 31, 2013
Investment 31
Dec. 31, 2012
Investment 31
Dec. 31, 2011
Common Stock Sold To Unrelated Third Party
Dec. 31, 2011
Stock Issued to Consultants
Dec. 31, 2011
Stock Issued to Consultants
Minimum
Dec. 31, 2011
Stock Issued to Consultants
Maximum
Dec. 31, 2011
Stock Issued For Legal Services
Investment 1
Common Stock, shares authorized 250,000,000   250,000,000 250,000,000 100,000,000                                                                                      
Common Stock, par or stated value $ 0.00001   $ 0.00001 $ 0.00001 $ 0.00001                                                                                      
Issuance of shares under private placement at $.10 per share, shares                                                                                       30,000        
Equity Issuance, Per Share Amount           $ 0.08         $ 0.01 $ 0.03     $ 0.01 $ 0.0075   $ 0.015           $ 0.0167   $ 0.0073 $ 0.0167   $ 0.0167       $ 0.005 $ 0.0167 $ 0.01     $ 0.03   $ 0.03       $ 0.10   $ 0.0015 $ 0.10  
Issuance of shares for services, shares 1,700,000           1,500,000 2,500,000 3,000,000 2,000,000             500,000   200,000 500,000 500,000 1,000,000 1,000,000             2,000,000 300,000 1,000,000         200,000   200,000   833,334   1,500,000   28,270,000     3,974,380
Issuance of shares for services, value $ 81,000 $ 1,500 $ 668,375       $ 15,000 $ 39,375 $ 105,000 $ 52,500             $ 50,000   $ 9,000 $ 65,000 $ 50,000 $ 90,000 $ 67,500             $ 80,000 $ 15,000 $ 30,000                         $ 48,200     $ 138,838
Issuance of shares for cash, shares                     1,000,000 2,500,000     500,000 1,666,667   2,000,000           1,500,000   750,000 3,500,000   1,500,000       2,000,000 1,500,000 10,000,000                          
Issuance of shares for cash, value 289,113   123,000               10,000 75,000   5,000   12,500               25,000   5,500 58,113   25,000       10,000 25,000 100,000 6,000   6,000   25,000   75,000            
Shares retired per merger agreement, shares                         10,000                       2,000,000     28,000,000                                        
Issuance of stock for cancellation of debt, shares           1,455,820                                                                                    
Issuance of stock for cancellation of debt, value $ 116,134         $ 116,134                                                                                    
XML 19 R42.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 3 -- Accounts Receivable (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Details    
Accounts receivable - other $ 348 $ 348
Uncollectible receivables written off during period $ 200  
XML 20 R37.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 7 - Accrued Expenses and Other Current Liabilities: Schedule of Accrued Liabilities (Tables)
3 Months Ended
Mar. 31, 2013
Tables/Schedules  
Schedule of Accrued Liabilities

 

 

March 31, 2013

December 31, 2012

Credit card balances

$    29,003

$    28,596

Accrue professional fees

4,500

13,500

Accrued payroll

-

20,000

Payroll taxes payable

48,652

48,652

Sales tax payable

15,082

15,082

Total accrued expenses  and other current liabilities

$  97,237

$  125,830

XML 21 R52.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 11 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Details      
Current Operations $ 89,700   $ 152,000
Less: Valuation Allowance (89,700)   (152,000)
Net Provision For Federal Income Taxes         
XML 22 R47.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 7 - Accrued Expenses and Other Current Liabilities: Schedule of Accrued Liabilities (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Restated
Other Accrued Liabilities, Current $ 29,003 $ 28,596
Accrued Professional Fees, Current 4,500 13,500
Accrued Salaries, Current   20,000
Payroll Taxes Payable 48,652 48,652
Sales Tax Payable 15,082 15,082
Accrued Liabilities and Other Liabilities $ 97,237 $ 125,830
XML 23 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 3 -- Accounts Receivable
3 Months Ended
Mar. 31, 2013
Notes  
Note 3 -- Accounts Receivable

NOTE 3 -- ACCOUNTS RECEIVABLE

 

Accounts receivable other consists of $200 from current period sales of Gourmet Wings Company plus $348 from Gourmet Wings Company sales in a prior period.  $200 of such receivables are considered uncollectible and were written off in the current period.

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Note 4 -- Other Assets (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Details    
Intangible Assets $ 3,566 $ 0
XML 26 R29.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Research and Development (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Research and Development

Research and Development

The Company has not incurred any research and development costs to date.

XML 27 R28.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Income Taxes (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Income Taxes

Income Taxes

Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of March 31, 2013, there have been no interest or penalties incurred on income taxes.

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M``!02P$"'@,4````"``;:[]"SNK5CNP(``#W<```%0`8```````!````I($R M8```965D9RTR,#$S,#,S,5]C86PN>&UL550%``/FW*A1=7@+``$$)0X```0Y M`0``4$L!`AX#%`````@`&VN_0HXAU#+3$P``NT`!`!4`&````````0```*2! M;6D``&5E9&`Q0````(`!MKOT+0F\Z^1D,``%IG`P`5`!@```````$```"D M@8]]``!E961G+3(P,3,P,S,Q7VQA8BYX;6Q55`4``^;`L``00E#@`` M!#D!``!02P$"'@,4````"``;:[]"=Q]WW:0(`%0`8```````!```` MI($DP0``965D9RTR,#$S,#,S,5]P&UL550%``/FW*A1=7@+``$$)0X` M``0Y`0``4$L!`AX#%`````@`&VN_0LM,L2NJ$```X'-D550%``/FW*A1=7@+``$$)0X```0Y 9`0``4$L%!@`````&``8`&@(```_U```````` ` end XML 29 R44.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 5 - Prepaid Expenses: Schedule of Prepaid Expenses (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Details    
Prepaid project expenses $ 29,950 $ 29,950
Other Prepaid Expense, Current 265,283 270,492
Prepaid expenses $ 295,233 $ 300,442

XML 30 R30.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Non-controlling Interests (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Non-controlling Interests

Non-Controlling Interests

As of December 31, 2012, the non-controlling interests balances were ($39,965), due to minority ownership of 35% in Gourmet Wing Company, and 49% in Energy Edge Solutions, Inc. As of March 31, 2013, the non-controlling interest balance was $393 due to the minority ownership of 49% in Energy Edge Solutions, Inc. On March 31, 2013, the Company acquired the minority interest in Gourmet Wing Company, bringing their ownership of Gourmet to 100%

XML 31 R31.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Revenue Recognition (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Revenue Recognition

Revenue Recognition

The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. That method is used because management considers total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term.

 

Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation. Selling, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income, which are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements, are accounted for as changes in estimates in the current period. No profit is recognized on change orders until they have been approved by the customer.

 

The asset, “Costs and estimated earnings in excess of billings on uncompleted contracts,” represents revenues recognized in excess of amounts billed. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts,” represents billings in excess of revenues recognized.

XML 32 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies
3 Months Ended
Mar. 31, 2013
Notes  
Note 2 - Summary of Significant Accounting Policies

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Consolidation

The consolidated financial statements include the accounts of Energy Edge Technologies Corporation, Dry Fried Wing Company, and Energy Edge Solutions, Inc.(collectively, the “Company”). All material intercompany transactions have been eliminated.

 

Basis of Accounting

Energy Edge uses the accrual basis of accounting for financial statement reporting. Accordingly, revenues are recognized when products are delivered and services are rendered, and expenses are recognized when the obligation is incurred. The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. The Company has selected a December 31 year end.

 

Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K filed with the SEC as of and for the year ended December 31, 2012.  In the opinion of management, all adjustments necessary for the financial statements to be not misleading for the interim periods presented have been reflected herein.  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

 

Fair Value of Financial Instruments

The Company's financial instruments consist of cash and cash equivalents, receivables, prepaid consulting fees, accounts payable, accrued expenses and other current liabilities, and loans payable –related parties. The carrying amounts of these financial instruments approximate fair value due either to length of maturity or interest rates that approximate prevailing rates unless otherwise disclosed in these financial statements.

 

Contract Receivables

Contract receivables are recorded when invoices are issued and are presented in the balance sheet net of the allowance for doubtful accounts. The Company extends credit to customers in the normal course of business. The Company continually monitors contract receivables. When we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance to reduce the net recognized receivable to the amount we believe will be collected. We write off uncollectible amounts against the allowance when we have exhausted our collection efforts.

 

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances. However, actual results may differ from the estimates.

 

Concentrations of Credit Risk

The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.

 

Income Taxes

Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of March 31, 2013, there have been no interest or penalties incurred on income taxes.

 

Research and Development

The Company has not incurred any research and development costs to date.

 

Non-Controlling Interests

As of December 31, 2012, the non-controlling interests balances were ($39,965), due to minority ownership of 35% in Gourmet Wing Company, and 49% in Energy Edge Solutions, Inc. As of March 31, 2013, the non-controlling interest balance was $393 due to the minority ownership of 49% in Energy Edge Solutions, Inc. On March 31, 2013, the Company acquired the minority interest in Gourmet Wing Company, bringing their ownership of Gourmet to 100%

 

Revenue Recognition

The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. That method is used because management considers total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term.

 

Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation. Selling, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income, which are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements, are accounted for as changes in estimates in the current period. No profit is recognized on change orders until they have been approved by the customer.

 

The asset, “Costs and estimated earnings in excess of billings on uncompleted contracts,” represents revenues recognized in excess of amounts billed. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts,” represents billings in excess of revenues recognized.

 

Stock-Based Compensation

The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation – Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values.  The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered.

 

The Company follows ASC Topic 505-50, formerly EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees.  In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined.  

 

Basic Income (Loss) Per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of March 31, 2013.

 

Recent Accounting Pronouncements

Energy Edge does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position, or cash flows.

 

Reclassifications

Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

XML 33 R32.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Stock-based Compensation (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Stock-based Compensation

Stock-Based Compensation

The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation – Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values.  The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered.

 

The Company follows ASC Topic 505-50, formerly EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees.  In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined.  

XML 34 R40.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 11 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)
3 Months Ended
Mar. 31, 2013
Tables/Schedules  
Schedule of Effective Income Tax Rate Reconciliation

 

 

March 31, 2013

December 31, 2012

Deferred tax asset attributable to:

 

 

Net operating loss carryover

$1,030,300

$    940,600

Less: valuation allowance

(1,030,300)

(940,600)

Net deferred tax asset

$                   0

$                0

XML 35 R53.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 11 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Details    
Net Operating Loss Carryover $ 1,030,300 $ 940,600
Less: Valuation Allowance (1,030,300) (940,600)
Net Deferred Tax Asset $ 0 $ 0
XML 36 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Current Assets    
Cash and cash equivalents $ 24,737 $ 18,553
Contract receivables - net      
Costs and estimated earnings in excess of billings      
Accounts receivable - other 348 348
Prepaid expenses 295,233 300,442
Total Current Assets 320,318 319,343
Property and Equipment    
Computers and equipment 10,640 10,640
Less: accumulated depreciation (6,024) (5,595)
Property and Equipment - net 4,616 5,045
Other Assets    
Intangible Assets 3,566 0
TOTAL ASSETS 328,500 324,388
Current liabilities    
Accounts payable 165,798 343,334
Accrued expenses and other current liabilities 97,237 125,830
Due to Related Parties 15,615 30,696
Billings in excess of costs and estimated earnings on uncompleted contracts      
Total Liabilities 278,650 499,860
Stockholders' Equity (Deficit)    
Common stock, $.00001 par value, 250,000,000 shares authorized, 100,357,026 shares issued and outstanding (78,667,872 - December 31, 2012) 999 782
Additional paid in capital 3,102,389 2,616,359
Subscription receivable (1,000) (1,000)
Treasury stock (5,000) (5,000)
Accumulated deficit (3,047,931) (2,746,648)
Non-controlling interests 393 (39,965)
Total Stockholders' Equity (Deficit) 49,850 (175,472)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 328,500 $ 324,388
XML 37 R45.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 5 - Prepaid Expenses (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Details      
Issuance of shares for services, shares 1,700,000    
Issuance of shares for services, value $ 81,000 $ 1,500 $ 668,375
XML 38 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES    
Net (loss) for the year $ (209,817) $ (13,661)
Adjustments to reconcile net loss to net cash used in operating activities:    
Non-controlling interests (50,408)  
Depreciation 429 430
Shares issued for services 81,000 1,500
Share returned to Company by consultants      
Changes in operating assets and liabilities:    
Accounts receivable   (48,008)
Costs and estimated earnings in excess of billings on uncompleted contracts   19,321
Accounts receivable - other   7,789
Prepaid consulting fees 5,209 (7,123)
Accounts payable (61,402) (41,076)
Billings in excess of costs and estimated earnings on uncompleted contracts   94,574
Sales tax payable      
Accrued expenses and other current liabilities (28,593) (6,549)
Cash flows provided by (used in) operating activities (263,582) 7,197
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property and equipment      
Purchase of intangible assets (3,566)  
Cash flows used in investing activities (3,566)  
CASH FLOWS FROM FINANCING ACTIVITIES    
Net increase in related party loans (15,781) (3,138)
Proceeds from the sale of common stock 289,113  
Purchase of treasury shares   (5,000)
Cash flows provided by (used in) financing activities 273,332 (8,138)
Net increase (decrease) in cash and cash equivalents 6,184 (941)
Cash and cash equivalents, beginning of the period 18,553 3,243
Cash and cash equivalents, end of the period 24,737 2,302
SUPPLEMENTAL CASH FLOW INFORMATION:    
Interest paid 950 1,274
Income taxes paid   500
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Issuance of stock in payment of accounts payable 116,134 0
Acquisition of non-controlling interest $ 91,466 $ 0
XML 39 R35.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Reclassifications (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Reclassifications

Reclassifications

Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

XML 40 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Basis of Accounting (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Basis of Accounting

Basis of Accounting

Energy Edge uses the accrual basis of accounting for financial statement reporting. Accordingly, revenues are recognized when products are delivered and services are rendered, and expenses are recognized when the obligation is incurred. The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. The Company has selected a December 31 year end.

XML 41 R36.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 5 - Prepaid Expenses: Schedule of Prepaid Expenses (Tables)
3 Months Ended
Mar. 31, 2013
Tables/Schedules  
Schedule of Prepaid Expenses

 

 

March 31, 2013

December 31, 2012

Prepaid project expenses

$    29,950

$      29,950

Prepaid consulting expense

265,283

270,492

Total prepaid expenses

$  295,233

$   300,442

XML 42 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company's financial instruments consist of cash and cash equivalents, receivables, prepaid consulting fees, accounts payable, accrued expenses and other current liabilities, and loans payable –related parties. The carrying amounts of these financial instruments approximate fair value due either to length of maturity or interest rates that approximate prevailing rates unless otherwise disclosed in these financial statements.

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XML 44 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Nature of Operations
3 Months Ended
Mar. 31, 2013
Notes  
Note 1 - Nature of Operations

NOTE 1 – NATURE OF OPERATIONS

 

Energy Edge Technologies Corporation (“Energy Edge”, “EEDG”, “Energy Edge Solutions”, “EES”, The Gourmet Wing Company, Inc.”, “The Gourmet Wing Company”, “TGWC” and the “Company”) was incorporated in New Jersey in January, 2004.  Energy Edge Technologies Corporation is comprised of two subsidiaries; Energy Edge Solutions and The Gourmet Wing Company, Inc

 

Energy Edge Solutions (EES) provides energy engineering and services specializing in the development and implementation of advanced, turnkey projects to reduce energy losses and increase the efficiency of new and existing buildings.  The Company is comprised of professional and industrial engineers, Leadership in Energy and Environmental Design (“LEED”) Accredited Professionals, and Green Building Coalition Certifying Agents.  Energy Edge is a Clean Energy Pay for Performance Partner and a Smart Start Building Trade Ally.  EES’ custom designed projects are developed using proprietary methods and maximize energy savings by treating an entire facility based on its unique features and electricity and gas usage. 

 

EES applies a whole facility approach to energy cost reduction by applying different technologies and engineering approaches to treat most of the various electrical and gas consuming loads across facility such as lighting, HVAC, refrigeration, and production equipment.  The energy projects developed and implemented by EES are ideal for virtually any type of facility and have successfully resulted in tremendous savings in manufacturing plants, hospitals, entertainment venues, office buildings, restaurants, warehouses, etc.   

 

EES’ revenues come primarily from engineering survey work and turnkey energy projects where EES takes responsibility for equipment procurement, installation labor, utility rebates, tax incentives, pre and post survey work, waste removal, certifications, and ongoing measurement and verification of results. 

 

The Gourmet Wing Company, Inc. (TGWC) is a newly formed combined fast casual restaurant company in the chicken wing segment and restaurant management company. TGWC is primarily engaged in the business of developing and subsequently managing, licensing, operating, developing and franchising a broad portfolio of restaurant and food concepts. 

 

TGWC revenues will primarily be derived from management fees, royalty fees, licensing fees and franchise fees.  TGWC will also sell food, sauces, mixes and other supplies to its franchisees/licensees.

XML 45 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
BALANCE SHEETS (PARENTHETICAL) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Statement of Financial Position    
Common Stock, par or stated value $ 0.00001 $ 0.00001
Common Stock, shares authorized 250,000,000 250,000,000
Common Stock, shares issued 100,357,026 78,667,872
Common Stock, shares outstanding 100,357,026 78,667,872
XML 46 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 11 - Income Taxes
3 Months Ended
Mar. 31, 2013
Notes  
Note 11 - Income Taxes

NOTE 11 – INCOME TAXES

 

For the three month periods ended March 31, 2013 and 2012, the Company has incurred a net loss and, therefore, has no tax liability.  The net deferred tax asset was generated by the loss carry-forward of approximately $3,050,400 and will expire beginning in 2030.

 

The provision for federal income tax consists of the following at March 31:

 

 

March31, 2013

March 31, 2012

Federal income tax benefit attributable to:

 

 

Current operations

$       89,700

$    152,000

Less: valuation allowance

(89,700)

(152,000)

Net provision for Federal income taxes

~

~

 

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

 

 

March 31, 2013

December 31, 2012

Deferred tax asset attributable to:

 

 

Net operating loss carryover

$1,030,300

$    940,600

Less: valuation allowance

(1,030,300)

(940,600)

Net deferred tax asset

$                   0

$                0

 

As of March 31, 2013, the Company had net operating loss carry forwards of approximately $3,050,400 that may be available to reduce future years’ taxable income through 2033. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

 

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $3,050,400 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.

XML 47 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
3 Months Ended
Mar. 31, 2013
May 14, 2013
Document and Entity Information    
Entity Registrant Name ENERGY EDGE TECHNOLOGIES CORP.  
Document Type 10-Q  
Document Period End Date Mar. 31, 2013  
Amendment Flag false  
Entity Central Index Key 0001495230  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding   102,873,829
Entity Filer Category Smaller Reporting Company  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Document Fiscal Year Focus 2013  
Document Fiscal Period Focus Q1  
XML 48 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 12 - Commitments and Contingencies
3 Months Ended
Mar. 31, 2013
Notes  
Note 12 - Commitments and Contingencies

NOTE 12 – COMMITMENTS AND CONTINGENCIES

 

The Company neither owns nor leases any real property as of March 31, 2013. An officer has provided office services without charge.  There is no obligation for the officer to continue this arrangement.  Such costs are immaterial to the financial statements and accordingly are not reflected herein.

XML 49 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Income Statement    
CONTRACT REVENUES $ 2,240 $ 146,071
CONTRACT COSTS 2,521 117,987
GROSS PROFIT (281) 28,084
OPERATING EXPENSES    
Compensation 17,166 6,088
Consulting services 100,919 10,727
Professional fees 19,534 4,020
Director fees 2,000  
General & administrative expenses 119,375 19,636
TOTAL OPERATING EXPENSES 258,994 40,471
LOSS FROM OPERATIONS (259,275) (12,387)
OTHER INCOME (EXPENSE)    
Interest expense (950) (1,274)
LOSS FROM OPERATIONS AND BEFORE NON-CONTROLLING INTERESTS (260,225) (13,661)
LESS: LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS 50,408  
LOSS BEFORE PROVISION FOR INCOME TAXES (209,817) (13,661)
PROVISION FOR INCOME TAXES      
NET LOSS ATTRIBUTABLE TO ENERGY EDGE TECHNOLOGIES CORPORATION $ (209,817) $ (13,661)
LOSS PER SHARE: BASIC AND DILUTED $ 0.00 $ 0.00
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED 94,364,613 82,711,205
XML 50 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 6 - Property and Equipment
3 Months Ended
Mar. 31, 2013
Notes  
Note 6 - Property and Equipment

NOTE 6 – PROPERTY AND EQUIPMENT

 

The Company’s policy is to depreciate the cost of property and equipment over the estimated useful lives of the assets by use of the straight-line method. The office equipment presently owned by the Company is being depreciated over an estimated useful life of five years. Depreciation expense for the three months ended March 31, 2013 and 2012 was $429 and $430, respectively.

XML 51 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 5 - Prepaid Expenses
3 Months Ended
Mar. 31, 2013
Notes  
Note 5 - Prepaid Expenses

NOTE 5 – PREPAID EXPENSES

 

Prepaid expenses consisted of the following at March 31, 2013 December 31, 2012:

 

 

March 31, 2013

December 31, 2012

Prepaid project expenses

$    29,950

$      29,950

Prepaid consulting expense

265,283

270,492

Total prepaid expenses

$  295,233

$   300,442

 

Prepaid Project Expenses

Prepaid project expenses consist of monies expended for project equipment for a project temporarily put on hold.

 

Prepaid Consulting

The Company has retained a number of consultants. These consultants are paid in cash and/or issuance of Company stock. Consultants were issued 1,700,000 shares of stock valued at $81,000 for the three months ended March 31, 2013. The consulting fees are being amortized over the terms of the contracts. As of March 31, 2013, and December 31, 2012, $265,283 and $270,492 respectively, remained in prepaid consulting.

XML 52 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Basis of Presentation (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Basis of Presentation

Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K filed with the SEC as of and for the year ended December 31, 2012.  In the opinion of management, all adjustments necessary for the financial statements to be not misleading for the interim periods presented have been reflected herein.  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

XML 53 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 13 - Going Concern
3 Months Ended
Mar. 31, 2013
Notes  
Note 13 - Going Concern

NOTE 13 – GOING CONCERN

 

The Company has limited working capital, and has suffered significant losses from operations.  These factors create substantial doubt about the Company’s ability to continue as a going concern.  The financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.

 

The ability of Energy Edge Technologies Corporation to continue as a going concern is dependent on the Company generating cash from the sale of its common stock, obtaining debt financing, attaining future profitable operations, acquiring or merging with a profitable company, and/or developing successful business operations in other industries through investment in related party ventures.  Management’s plans include selling its equity securities and obtaining debt financing to fund its capital requirements; however, there can be no assurance the Company will be successful in these efforts.

XML 54 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 9 -- Business Segments
3 Months Ended
Mar. 31, 2013
Notes  
Note 9 -- Business Segments

NOTE 9 -- BUSINESS SEGMENTS

 

The Company is made up of three entities in which Energy Edge Technologies Corporation is the parent entity.  The Company owned a sixty-five percent interest in Gourmet Wings Company during the current quarter, but acquired the remaining thirty-five percent of the stock of Gourmet Wings Company as of March 31, 2013.  Fifty-one percent of the outstanding stock of Energy Edge Solutions, Inc. is owned by the Company.  Energy Edge Solutions, Inc. had virtually no operating activity during the current quarter.

 

The balance sheet and income statement information of each entity for the current quarter is presented in US Dollars as follows:

 

EEDG

TGWC

EES

Total

Current Assets

290,233

30,074

11

320,318

Fixed Assets

4,616

0

0

4,616

Intangibles

0

3,566

0

3,566

Total Assets

294,849

33,640

11

328,500

Current Liabilities

276,936

1,600

114

278,650

Intercompany

(308,093)

307,678

415

0

Shareholders' Equity

326,006

(275,638)

(518)

49,850

Total Liabilities and Shareholders' Equity

294,849

33,640

11

328,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

2,040

200

0

2,240

Costs of Sales

(2,471)

(50)

0

(2,521)

Gross Profit

(431)

150

0

(281)

Operating Expenses

(114,821)

(144,173)

0

(258,994)

Other Expenses

(950)

0

0

(950)

Net (loss) before non-controlling interest

(116,202)

(144,023)

0

(260,225)

Non-controlling interest

50,408

0

0

50,408

Net (loss) from operations

(65,794)

(144,023)

0

(209,817)

XML 55 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 7 - Accrued Expenses and Other Current Liabilities
3 Months Ended
Mar. 31, 2013
Notes  
Note 7 - Accrued Expenses and Other Current Liabilities

NOTE 7 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

 

Accrued expenses and other current liabilities consisted of the following at March 31, 2013 and December 31, 2012:

 

 

March 31, 2013

December 31, 2012

Credit card balances

$    29,003

$    28,596

Accrue professional fees

4,500

13,500

Accrued payroll

-

20,000

Payroll taxes payable

48,652

48,652

Sales tax payable

15,082

15,082

Total accrued expenses  and other current liabilities

$  97,237

$  125,830

XML 56 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 8 - Related Party Transactions
3 Months Ended
Mar. 31, 2013
Notes  
Note 8 - Related Party Transactions

NOTE 8 – RELATED PARTY TRANSACTIONS

 

Related party loans totaling $15,615 and $30,696 at March 31, 2013 and December 31, 2012, respectively, are owed to various related parties of the Company for reimbursement of expenses incurred on behalf of the Company.

 

Related party loans are unsecured, non-interest bearing and have no specific terms of repayment unless otherwise noted.

XML 57 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 10 - Capital Stock
3 Months Ended
Mar. 31, 2013
Notes  
Note 10 - Capital Stock

NOTE 10 – CAPITAL STOCK

 

On March 26, 2010, the Company amended its Articles of Incorporation to increase the number of authorized shares to 100,000,000 with a par value of $.00001.  On November 14, 2012, the Company amended its Articles of Incorporation to increase the number of authorized shares to 250,000,000 with a par value of $.00001.

 

During 2011, the Company sold 30,000 shares of common stock at $.10 per share under a private placement to an unrelated third party for total proceeds of $3,000.

 

During 2011, the Company issued 28,270,000 shares of stock valued at $48,200 to consultants. The shares were valued at prices ranging from $.0015 to $.10 per share.

 

During 2011, the Company issued 3,974,380 shares of stock valued at $138,838 for legal services. The shares were valued based on the value of the legal services provided.

 

On January 23, 2012, the Company issued 1,500,000 shares of stock valued at $15,000 for business consulting services.

 

On May 3, 2012, the Company issued 2,500,000 shares of stock valued at $39,375 for legal services.

 

On May 7, 2012, the Company issued 3,000,000 shares of stock valued at $105,000 for business consulting services.

 

On May 14, 2012, the Company issued 2,000,000 shares of stock valued at $52,500 for business consulting services.

 

On May 17, 2012, the Company sold 1,000,000 shares of common stock at $.01 per share under a private placement to an unrelated third party for total proceeds of $10,000.

 

On May 25, 2012, 10,000 shares of stock issued for consulting services in 2011 were returned to the Company.

 

On June 5, 2012, the Company sold 500,000 shares of common stock at $.01 per share under a private placement to an unrelated third party for total proceeds of $5,000.

 

On June 6, 2012, the Company sold 1,666,667 shares of common stock at $.0075 per share under a private placement to an unrelated third party for total proceeds of $12,500.

 

On June 6, 2012, the Company issued 500,000 shares of stock valued at $50,000 for business consulting services

 

On June 6, 2012, the Company sold 2,000,000 shares of common stock at $.015 per share under a private placement to an unrelated third party for total proceeds of $30,000.

 

On June 17, 2012, the Company issued 200,000 shares of stock valued at $9,000 for business consulting services.

 

On July 20, 2012, the Company issued 500,000 shares of stock valued at $65,000 for business consulting services.

 

On August 8, 2012, the Company issued 500,000 shares of stock valued at $50,000 for business consulting services.

 

On August 9, 2012, the Company issued 1,000,000 shares of stock valued at $90,000 for business consulting services.

 

On August 14, 2012, the Company issued 1,000,000 shares of stock valued at $67,500 for legal services.

 

On August 28, 2012, 2,000,000 shares of stock issued for consulting services in 2011 were returned to the Company.

 

On October 26, 2012, the Company sold 750,000 shares of common stock at $.0073 per share under a private placement to an unrelated third party for total proceeds of $5,500.

 

On November 21, 2012, 28,000,000 shares of stock previously held by former officers of the Company were surrendered.

 

On November 29, 2012, the Company sold 1,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $25,000.

 

On November 29, 2012, the Company issued 2,000,000 shares of stock valued at $80,000 for business consulting services.

 

On December 10, 2012, the Company issued 300,000 shares of stock valued at $15,000 for business consulting services.

 

On December 12, 2012, the Company issued 1,000,000 shares of stock valued at $30,000 for business consulting services.

 

On December 21, 2012, the Company sold 2,000,000 shares of common stock at $.005 per share under a private placement to an unrelated third party for total proceeds of $10,000.

 

On December 27, 2012, the Company sold 1,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $25,000.

 

As of December 31, 2012, the Company had no warrants or options outstanding.

 

On January 8, 2013, the Company sold 2,500,000 shares of common stock at $.03 per share under a private placement to an unrelated third party for total proceeds of $75,000.

 

On January 11, 2013, the Company sold 1,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $25,000.

 

On January 16, 2013, the Company sold 3,500,000 shares of common stock at $.0167 per share under a private placement to an unrelated third party for total proceeds of $58,113.

 

On January 23, 2013, the Company issued 1,455,820 shares of common stock at $.08 per share in cancellation of debt in the amount of $116,134.

 

On January 29, 2013, the Company sold 10,000,000 shares of common stock at $.01 per share under a private placement to an unrelated third party for total proceeds of $100,000.

 

On January 30, 2013, the Company issued 200,000 shares of common stock valued at $6,000 for business consulting services.

 

On January 30, 2013, the Company sold 200,000 shares of common stock at $.03 per share under a private placement to an unrelated third party for total proceeds of $6,000.

 

On January 31, 2013, the Company sold 833,334 shares of common stock at $.03 per share under a private placement to an unrelated third party for total proceeds of $25,000.

 

On February 26, 2013, the Company issued 1,500,000 shares of common stock valued at $75,000 for prepaid legal services.

XML 58 R34.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Recent Accounting Pronouncements

Recent Accounting Pronouncements

Energy Edge does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position, or cash flows.

XML 59 R51.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 11 - Income Taxes (Details) (USD $)
Mar. 31, 2013
Details  
Operating Loss Carryforwards $ 3,050,400
Cumulative Tax Effect Rate 34.00%
XML 60 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Basis of Consolidation (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Basis of Consolidation

Basis of Consolidation

The consolidated financial statements include the accounts of Energy Edge Technologies Corporation, Dry Fried Wing Company, and Energy Edge Solutions, Inc.(collectively, the “Company”). All material intercompany transactions have been eliminated.

XML 61 R26.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Use of Estimates (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances. However, actual results may differ from the estimates.

XML 62 R49.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 9 -- Business Segments: Schedule of Segment Reporting Information, by Segment (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Total Current Assets $ 320,318   $ 319,343    
Intangible Assets 3,566   0    
TOTAL ASSETS 328,500   324,388    
Total Stockholders' Equity (Deficit) 49,850   (175,472) (173,911) 10,141
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 328,500   324,388    
GROSS PROFIT (281) 28,084      
TOTAL OPERATING EXPENSES 258,994 40,471      
LOSS FROM OPERATIONSAND BEFORE NON-CONTROLLING INTERESTS (260,225) (13,661)      
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (209,817) (13,661)      
Net (loss) for the year (209,817) (13,661)      
Energy Edge (EEDG)
         
Total Current Assets 290,233        
Fixed Assets 4,616        
Intangible Assets 0        
TOTAL ASSETS 294,849        
Liabilities, Current 276,936        
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities (308,093)        
Total Stockholders' Equity (Deficit) 326,006        
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 294,849        
Revenues 2,040        
Cost of Revenue (2,471)        
GROSS PROFIT (431)        
TOTAL OPERATING EXPENSES (114,821)        
LOSS FROM OPERATIONSAND BEFORE NON-CONTROLLING INTERESTS (950)        
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (116,202)        
Non-controlling interests 50,408        
Net (loss) for the year (65,794)        
The Gourmet Wing Company (TGWC)
         
Total Current Assets 30,074        
Fixed Assets 0        
Intangible Assets 3,566        
TOTAL ASSETS 33,640        
Liabilities, Current 1,600        
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities 307,678        
Total Stockholders' Equity (Deficit) (275,638)        
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 33,640        
Revenues 200        
Cost of Revenue (50)        
GROSS PROFIT 150        
TOTAL OPERATING EXPENSES (144,173)        
LOSS FROM OPERATIONSAND BEFORE NON-CONTROLLING INTERESTS 0        
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (144,023)        
Non-controlling interests 0        
Net (loss) for the year (144,023)        
Energy Edge Solutions (EES)
         
Total Current Assets 11        
Fixed Assets 0        
Intangible Assets 0        
TOTAL ASSETS 11        
Liabilities, Current 114        
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities 415        
Total Stockholders' Equity (Deficit) (518)        
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 11        
Revenues 0        
Cost of Revenue 0        
GROSS PROFIT 0        
TOTAL OPERATING EXPENSES 0        
LOSS FROM OPERATIONSAND BEFORE NON-CONTROLLING INTERESTS 0        
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES 0        
Non-controlling interests 0        
Net (loss) for the year 0        
Business Segment Totals
         
Total Current Assets 320,318        
Fixed Assets 4,616        
Intangible Assets 3,566        
TOTAL ASSETS 328,500        
Liabilities, Current 278,650        
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities 0        
Total Stockholders' Equity (Deficit) 49,850        
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 328,500        
Revenues 2,240        
Cost of Revenue (2,521)        
GROSS PROFIT (281)        
TOTAL OPERATING EXPENSES (258,994)        
LOSS FROM OPERATIONSAND BEFORE NON-CONTROLLING INTERESTS (950)        
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (260,225)        
Non-controlling interests 50,408        
Net (loss) for the year $ (209,817)        
XML 63 R41.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Non-controlling Interests (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Non-controlling interests $ 393 $ (39,965)
Energy Edge Solutions Inc
   
Noncontrolling Interest, Ownership Percentage by Parent 100.00%  
XML 64 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) (USD $)
Total
Common Stock
Additional Paid in Capital
Subscription Receivable
Treasury Stock
Non-Controlling Interests
Accumulated Deficit (Restated)
Stockholders' Equity at Dec. 31, 2010 $ 10,141 $ 490 $ 1,639,238       $ (1,629,587)
Shares Outstanding at Dec. 31, 2010   48,986,825          
Correction of payroll tax liability 74,200           74,200
Issuance of shares under private placement at $.10 per share, value 3,000   3,000        
Issuance of shares under private placement at $.10 per share, shares   30,000          
Issuance of shares for consulting services, value 48,200 283 47,917        
Issuance of shares for consulting services, shares   28,270,000          
Issuance of shares for legal services, value 138,838 40 138,798        
Issuance of shares for legal services, shares   3,974,380          
Net loss (448,290)           (448,290)
Stockholders' Equity at Dec. 31, 2011 (173,911) 813 1,828,953       (2,003,677)
Shares, Outstanding at Dec. 31, 2011   81,261,205          
Issuance of shares for cash, value 123,000 109 122,891        
Issuance of shares for cash, shares   10,916,667          
Issuance of shares for services, value 668,375 160 668,215        
Issuance of shares for services, shares   16,000,000          
Shares retired per merger agreement, value   (280) 280        
Shares retired per merger agreement, shares   (28,000,000)          
Shares returned by consultants, value (4,000) (20) (3,980)        
Shares returned by consultants, shares   (2,010,000)          
Purchase of treasury shares (5,000)       (5,000)    
Acquisition of stock in subsidiaries 190     (1,000)   1,190  
Net loss (784,126)         (41,155) (742,971)
Stockholders' Equity at Dec. 31, 2012 (175,472) 782 2,616,359 (1,000) (5,000) (39,965) (2,746,648)
Shares, Outstanding at Dec. 31, 2012   78,167,872          
Issuance of shares for cash, value 289,113 185 288,928        
Issuance of shares for cash, shares   18,533,334          
Issuance of shares for services, value 81,000 17 80,983        
Issuance of shares for services, shares 1,700,000 1,700,000          
Shares returned by consultants, value               
Issuance of stock for cancellation of debt, value 116,134 15 116,119        
Issuance of stock for cancellation of debt, shares   1,455,820          
Acquisition of non-controlling interest (700)         (700)  
Termination of non-controlling interest           91,466 (91,466)
Net loss (260,225)         (50,408) (209,817)
Stockholders' Equity at Mar. 31, 2013 $ 49,850 $ 999 $ 3,102,389 $ (1,000) $ (5,000) $ 393 $ (3,047,931)
Shares, Outstanding at Mar. 31, 2013   100,357,026          
XML 65 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 4 -- Other Assets
3 Months Ended
Mar. 31, 2013
Notes  
Note 4 -- Other Assets

NOTE 4 -- OTHER ASSETS

 

Other assets represents the aggregate costs of $3,566 incurred by Gourmet Wings Company in the current period related to the development of sauce recipes.  As the asset will be useful for a period of indeterminant length in the future, no amortization has been recognized.

XML 66 R27.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Concentrations of Credit Risk (Policies)
3 Months Ended
Mar. 31, 2013
Policies  
Concentrations of Credit Risk

Concentrations of Credit Risk

The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.

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Note 9 -- Business Segments: Schedule of Segment Reporting Information, by Segment (Tables)
3 Months Ended
Mar. 31, 2013
Tables/Schedules  
Schedule of Segment Reporting Information, by Segment

 

EEDG

TGWC

EES

Total

Current Assets

290,233

30,074

11

320,318

Fixed Assets

4,616

0

0

4,616

Intangibles

0

3,566

0

3,566

Total Assets

294,849

33,640

11

328,500

Current Liabilities

276,936

1,600

114

278,650

Intercompany

(308,093)

307,678

415

0

Shareholders' Equity

326,006

(275,638)

(518)

49,850

Total Liabilities and Shareholders' Equity

294,849

33,640

11

328,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

2,040

200

0

2,240

Costs of Sales

(2,471)

(50)

0

(2,521)

Gross Profit

(431)

150

0

(281)

Operating Expenses

(114,821)

(144,173)

0

(258,994)

Other Expenses

(950)

0

0

(950)

Net (loss) before non-controlling interest

(116,202)

(144,023)

0

(260,225)

Non-controlling interest

50,408

0

0

50,408

Net (loss) from operations

(65,794)

(144,023)

0

(209,817)

XML 69 R20.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 14 - Subsequent Events
3 Months Ended
Mar. 31, 2013
Notes  
Note 14 - Subsequent Events

NOTE 14 – SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to March 31, 2013 to the date these financial statements were issued, and reports the following:

 

During the fiscal year ended December 31, 2012, the Company acquired sixty-five percent (65%) of the capital stock of The Dry Fried Wing Company.  On March 31, 2013, the Company acquired the remaining thirty-five percent (35%) of such stock.  On April 5, 2013 the Company officially changed the name of The Dry Fried Wing Company to The Gourmet Wing Company, Inc.  The Gourmet Wing Company is primarily engaged in the business of licensing, operating, developing and franchising a system of distinctive quick-service and fast casual restaurants in the chicken wing segment.  The Company has supplied a significant amount of capital to The Gourmet Wing Company and expects to continue to do so in the future in addition to supplying capital to Energy Edge Solutions. 

 

In May  2013, we entered into an exclusive agreement with CRISP Watermelon Drink, LLC for the wholesale distribution of Cu'i (pronounced "swee") a 100% all natural water melon drink throughout the United States.