Quarterly report pursuant to Section 13 or 15(d)

Note 2 - Discontinued Operations of GCE Mexico and Subsidiaries

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Note 2 - Discontinued Operations of GCE Mexico and Subsidiaries
 3 Months Ended
Mar. 31, 2016
Notes  
Note 2 - Discontinued Operations of GCE Mexico and Subsidiaries

Note 2 – Discontinued Operations of GCE Mexico and subsidiaries

In November 2015, we accepted an offer from a Mexican agricultural operator in the region to purchase our three Jatropha Farms  and closed the transaction on December 2, 2015.  This transaction was good for the company and our shareholders because it allowed us to reduce high-cost debt incurred during the initial research and development phase of our business.  We have not sold any of our Intellectual Property (IP) rights to the buyer. As a result, our Jatropha genetics are preserved as a core Company  asset as is the amount of institutional knowledge, experience and know-how that we developed over the past several years in Mexico.  As part of the sale, we will retain access rights to the Certified Nursery and R&D areas on the farm for an extended period of time.  As such, we retained our farm workers until December 18, 2015 to ensure the proper growth and well being of the Certified Nursery and R&D areas.  The final lay off of the management staff was not complete until January 15, 2016.

 

The divesting of these three farms, improved the Company's balance sheet by approximately $5,100,000 by reducing the Company's debt by approximately $19,400,000.

 

The Company recorded the termination of it's operations of GCE Mexico and subsidiaries ("GCE Mexico") as of December 31, 2015, in accordance with Accounting Standards Codification (ASC) No. 205-20, Discontinued Operations.  As such, the historical results of GCE Mexico have been adjusted to include discontinued-related costs and exclude corporate allocations with Global Clean Energy Holdings, Inc (GCEH) and have been classified as discontinued operations in all periods presented.

 

The following financial information presents the discontinued operations for the three months ended March 31, 2016 and March 31, 2015.

 

 

March 31,

 

2016

2015

Major classes of line items constitution pretax profit (loss) of discontinued operations

 

 

Revenue

$-

$8,011

General and administrative expenses

(12,832)

(63,034)

Plantation operating costs

-

(23,204)

Interest Expense

-

(270,692)

Other Income and Expenses

12

1,698

Pretax loss from discontinued operations

(12,820)

(347,221)

Pretax loss on disposal of the discontinue operations

-

-

Total pretax loss on discontinue operations

(12,820)

(347,221)

Income Tax Benefits

-

-

Total loss on discontinued operations

$(12,820)

$(347,221)

 

The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations:

 

Reconciliation of the Carrying Amounts of Major Classes of Assets and Liabilities of the Discontinued Operations that are Disclosed in the Notes to the Financial Statement to Total Assets and Liabilities of the Disposal Group classified as Property and Equipment that are presented in the Consolidated Balance Sheet

 

 

 

 

 

 

  

March 31,

December 31,

 

2016

2015

Carrying amounts of major classes of assets included as part of discontinued operations

(Unaudited)

 

Cash and cash equivalents

$63,919

$217,271

Accounts receivable

-

-

Inventory

-

-

Other Current Assets

-

744

Property and Equipment, Net

-

-

Other noncurrent assets

-

-

Total Assets of the disposal group in the statement of financial position

$63,919

$218,015

 

 

 

Carrying amounts of major classes of liabilities included as part of discontinued operations

 

 

Total Liabilities of the disposal group in the statement of financial positon

$-

$-