Business Context and Reporting Period
Company: General Enterprise Ventures, Inc. (formerly Ultronics Corporation, General Environmental Management, Inc.)
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 2011
Status: The Company was dormant from February 2010 through January 2021. During the 2011 reporting period, the Company had no operating revenues or active business operations. All assets were deemed disposed of in April 2010, and operations were classified as discontinued. The financial statements reflect only the accrual of interest on outstanding debt.
Key Financial Metrics
| Metric | 2011 | 2010 |
|---|---|---|
| Revenue | $0 | $0 (Discontinued) |
| Net Loss | $(3,475,520) | $(16,426,153) |
| Loss from Continuing Operations | $(3,475,520) | $(3,475,520) |
| Loss from Discontinued Operations | $0 | $(12,950,633) |
| Total Assets | $0 | $0 |
| Total Liabilities | $33,976,161 | $30,500,641 |
| Stockholders' Deficit | $(33,976,161) | $(30,500,641) |
| Cash and Cash Equivalents | $0 | $0 |
| Working Capital Deficiency | $(22,020,568) | $(18,545,048) |
Debt Composition (2011):
- Accounts Payable: $2,115,138
- Accrued Expenses: $7,582,907
- Current Financing Obligations: $6,777,027
- Long-term Obligations: $3,783,919
- Acquisition Notes Payable: $8,171,674
Material Changes vs. Prior Period
- Operational Status: The Company remained dormant with no revenue generation. The 2011 net loss of $(3.48) million was solely attributable to interest and financing costs on outstanding debt, whereas the 2010 loss included a significant $(12.95) million charge from discontinued operations.
- Liabilities: Total liabilities increased by approximately $3.48 million year-over-year, driven entirely by the accrual of interest on existing debt obligations.
- Assets: Total assets remained at zero for both periods, as all assets were written off or deemed disposed of in 2010.
Guidance, Risks, and Unusual Items
Going Concern: The filing explicitly states that the Company's significant operating losses and working capital deficiency raise substantial doubt about its ability to continue as a going concern. The financial statements do not include adjustments that might result from this uncertainty.
Audit Opinion: The independent registered public accounting firm (BF Borgers CPA PC) issued a Disclaimer of Opinion. The auditors were unable to obtain sufficient appropriate audit evidence because the Company's records were insufficient, and much of the necessary audit evidence had been destroyed or lost prior to the audit engagement in 2023.
Unusual Items:
- Dormancy Methodology: Due to the dormant period (2010–2021), the Company treated all March 31, 2010 assets as disposed of for no value. Liabilities accrued interest until March 31, 2017, when they were written off due to the expiration of the Statute of Limitations.
- Legal Proceedings: A lawsuit filed in 2007 by Romic Environmental Technologies Corp. was settled in February 2010, with the majority of the payment funded by insurance.
Investor Verification Checklist
- Audit Reliability: Verify the impact of the "Disclaimer of Opinion" on the validity of the financial statements; the numbers presented are unaudited due to missing records.
- Debt Validity: Confirm the status of the $34 million in liabilities, as the filing notes that liabilities were written off in 2017 due to the Statute of Limitations, yet they appear on the 2011 balance sheet.
- Corporate Status: Verify the Company's current operational status and whether the "dormant" classification has changed since the 2021 revival and redomiciling to Wyoming.
- Related Party Transactions: Review the $931,726 payable to related entities and the $765,000 bonus due to officers/directors to assess potential conflicts of interest.