Company Also Addresses Considering Litigation Against Reporter and Resulting Short-Selling
DALLAS--(BUSINESS WIRE)-- Green Automotive Company Corporation (OTC:GACR:PK) yesterday released its Financial Statements and Statement of Operations for the Company’s 1st Quarter ended March 31, 2011 together with its quarterly updated discussion of its operations.
According to information posted this morning on www.otcmarkets.com the Company reported a loss of $202,952 for the quarter ended March 31, 2011 compared to a loss last year of $883,831 for the quarter ended March 31, 2010, an improvement of $680,879 over 2010. The loss resulted in a reduction in the Company’s Stockholders’ Equity of $202,952 but the Company’s Total Assets increased by $225,468 to $1,523,354.
"Overall," said Fred Luke, President of Green Automotive, "the reduction of our overhead and re-direction of resources to the continued homologation of the SUV, is in line with our revised budget and timeline for final testing and delivery to the market. And, as the Company has disclosed in our all its filings, the on-going homologation and creation of the necessary distribution infrastructure takes a sizeable investment, with virtually no off-setting income. However, due to our niche and choice to be an importer/distributer as opposed to a manufacturer, we are forecasting revenue to start very soon after the first new vehicles are imported, staged and processed and released to the Company's independent retail dealership network for sale to U.S. consumers: which is just one of the reasons we proposed to purchase the assets of StarPoint USA Inc., last month."
Mr. Luke went on to say that "recent criticism by a financial writer who represents to be closely following this newly developing Electric Vehicle industry, appears to me to be doing the subject matter and his readers a great disservice by not conducting any real due diligence, and therefore lacks the facts to substantiate his negative editorial comments. On the other hand, perhaps he did conduct the necessary investigative work but simply chose not to tell the whole story as it might undermine his agenda and, in turn, undermine his creditability. Aside from getting the Company’s name correct, and simply restating the Company's recent announcements, it appears to me that very little effort was made to conduct proper due diligence before writing such an negative article."