General Automotive (GREY:GNAUQ)

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Monday, April 18, 2011

Comments & Business Outlook

GENERAL AUTOMOTIVE COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

	Year ended December 31,
	2010			2009
Revenues	$	12,638,589			11,487,908
Costs of goods sold		11,297,755			10,073,108
Gross profit		1,340,834			1,414,800

Expenses:
Selling, general and administrative		1,836,511			1,923,319
Selling general and administrative - Stock based compensation		10,152			304,296
Total expenses, net		1,846,663			2,227,615
Loss from operations		(505,829	)		(812,815	)
Other income (expense):
Interest expense		(168,463	)		(370,733	)
Other, net		-			5,836
Total other expense, net		(168,463	)		(364,897	)

Net loss from operations		(674,292	)		(1,177,712	)

Loss from equity method investment		(19,468	)		-

Net loss	$	(693,760	)		(1,177,712	)


Loss per share
Basic and diluted:	$	(0.04	)		(0.07	)

Weighted average number of common shares outstanding:
Basic and diluted		19,710,581			17,687,494

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Tuesday, November 23, 2010

Comments & Business Outlook

	Three months ended September 30,						Nine months ended September 30,
	2010			2009			2010			2009
Revenues	$	3,337,201		$	2,549,479		$	8,666,556		$	9,006,344
Costs of goods sold		3,033,938			2,275,710			7,752,686			7,880,887
Gross profit		303,263			273,769			913,870			1,125,457

Expenses:
Selling, general and administrative		453,115			444,930			1,291,781			1,504,169

Total expenses, net		453,115			444,930			1,291,781			1,504,169
Loss from operations		(149,852	)		(171,161	)		(377,911	)		(378,712	)
Other income (expense):
Interest expense		(45,545	)		(29,014	)		(131,752	)		(333,176	)
Other, net		-			-			-			5,836
Total other income (expense), net		(45,545	)		(29,014	)		(131,752	)		(327,340	)


Net loss	$	(195,397	)	$	(200,175	)	$	(509,663	)	$	(706,052	)

Loss per share
Basic and diluted loss per share	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.04	)

Weighted average number of common shares outstanding:
Basic and diluted		18,354,417			15,854,417			20,187,750			15,845,528

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Saturday, November 20, 2010

Liquidity Requirements

Parallel to expanding the customer base of our wholly-owned subsidiary, OES through expansion of product offerings and identification of new customers, we plan to continue our search for companies involved in the sale and distribution of automotive parts that would be available for acquisition. It is management’s belief that the return to profitability is dependent upon the ability to increase revenue volume. If we determine that we do not presently have sufficient capital to fully fund our growth and development, we will seek additional capital through the financial markets. In connection with raising this additional capital, we will incur appropriate accounting and legal fees. Management believes that it will be successful in its plans to return the Company to profitability; however there can be no assurances that we will be able to obtain additional financing, increase revenues and improve gross margins in order to be able to continue as a going concern.

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