content: <HTML>
  <HEAD>
       <TITLE></TITLE>
  </HEAD>
  <BODY STYLE="font: 10pt Times New Roman, Times, Serif">
  
  <P STYLE="margin: 0"></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-top: Black 2.25pt double"><B>UNITED STATES</B></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 16pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Form 10-Q</B></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">(Mark One)</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>
  
  <P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the quarterly period ended September 30,
  2014</B></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">OR</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">For the transition period from_____________ to
  _____________.</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Commission file number 000-54049</B></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 16pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Green
  Automotive Company</B></FONT></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>(Exact name of registrant as specified in
  its charter)</I></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
      <TD STYLE="width: 55%; font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font-family: Times New Roman, Times, Serif"><b>Nevada</b></font></td>
      <TD STYLE="width: 45%; font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font-family: Times New Roman, Times, Serif"><b>22-3680581</b></font></td></tr>
  <tr style="vertical-align: bottom">
      <td>
          <P STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><i>(State or other jurisdiction of </i></P>
          <P STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><i>incorporation or organization) </i></P></td>
      <td>
          <P STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><i>(I.R.S. Employer</i></P>
          <P STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><i>Identification No.)</i></P></td></tr>
  <tr style="vertical-align: bottom">
      <td style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center">&nbsp;</td>
      <td style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center">&nbsp;</td></tr>
  <tr style="vertical-align: bottom">
      <td colspan="2">
          <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2618 San Miguel, Suite 203</b></P>
          <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Newport Beach, California 92660</b></P></td></tr>
  <tr style="vertical-align: bottom">
      <td colspan="2" style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 9pt"><i>(Address of principal executive offices) (Zip Code)</i></font></td></tr>
  </table>
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(310) 884 - 3332</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>Registrant&rsquo;s telephone number, including
  area code</I></P>
  
  <P STYLE="font: 13.5pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>5495 Wilson Street</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Riverside, California 92509</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0"><I>(Former address, if changed
  since last report)</I></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Former fiscal year, if changed since last report)</P>
  
  <P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
  by check mark whether the registrant (1) has 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 </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
  No &#9744;</FONT></P>
  
  <P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-size: 10pt">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 (&sect;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).</FONT> <FONT STYLE="font-size: 10pt">Yes
  <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT> No <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></FONT></P>
  
  <P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 the definitions
  of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b-2
  of the Exchange Act.</P>
  
  <P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
      <td style="width: 64%; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Large accelerated filer <font style="font-family: Wingdings"></font>&#9744;</font></td>
      <td style="width: 36%; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Accelerated filer <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</font></font></td></tr>
  <tr style="vertical-align: bottom">
      <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Non-accelerated filer <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</font></font></td>
      <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Smaller reporting company <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</font></font></td></tr>
  <tr style="vertical-align: bottom">
      <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">(Do not check if a smaller reporting company)</font></td>
      <td style="font: 10pt Times New Roman, Times, Serif">&nbsp;</td></tr>
  </table>
  
  <!-- Field: Page; Sequence: 1 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo; Options: Hidden -->&nbsp;<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
  by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">o&#9744;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
  No </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Applicable only to issuers involved in bankruptcy
  proceedings during the preceding five years:</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark whether the registrant filed all documents
  and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act of 1934 subsequent to the distribution of securities
  under a plan confirmed by a court. Yes <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT> No <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Applicable only to corporate issuers:</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate the number of shares outstanding of
  each of the issuer&rsquo;s classes of common stock, as of the latest practicable date. As of January 15, 2016, there were 747,837,198
  shares of common stock, $0.001 par value, issued and outstanding.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <!-- Field: Page; Sequence: 2 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><BR CLEAR="ALL"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="TableOfContents"></A>GREEN AUTOMOTIVE COMPANY</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td colspan="2" style="font-weight: bold"><b><A HREF="#a_001">PART I &ndash; FINANCIAL INFORMATION</A></b></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td style="width: 93%; padding-right: 18.65pt">&nbsp;</td>
      <td style="width: 7%; text-align: right">&nbsp;</td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td style="padding-right: 18.65pt"><A HREF="#a_002">ITEM 1 &ndash; Financial Statements</A></td>
      <td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">6</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td style="padding-right: 18.65pt; font-family: Times New Roman, Times, Serif"><font style="font-size: 10pt"><A HREF="#a_003">ITEM 2 &ndash; Management&rsquo;s Discussion And Analysis Of Financial Condition And Results Of Operation</A></font></td>
      <td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">34</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td style="padding-right: 18.65pt; text-decoration: underline"><A HREF="#a_004">ITEM 3 &ndash; Quantitative And Qualitative Disclosures About Market Risk</A></td>
      <td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">48</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td style="padding-right: 18.65pt; text-decoration: underline"><A HREF="#a_005">ITEM 4 &ndash; Controls And Procedures</A></td>
      <td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">48</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td style="padding-right: 18.65pt">&nbsp;</td>
      <td style="text-align: right">&nbsp;</td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td colspan="2" style="font-weight: bold"><b><A HREF="#a_006">PART II &ndash; OTHER INFORMATION</A></b></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td style="padding-right: 18.65pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
      <td style="text-align: right">&nbsp;</td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td style="padding-right: 18.65pt; padding-left: 45pt; text-decoration: underline; text-indent: -45pt"><A HREF="#a_007">ITEM 1 &ndash; Legal Proceedings</A></td>
      <td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">50</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td style="padding-right: 18.65pt; text-decoration: underline"><A HREF="#a_008">ITEM 1A &ndash;&nbsp;Risk Factors</A></td>
      <td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">51</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td style="padding-right: 18.65pt; padding-left: 45pt; text-decoration: underline; text-indent: -45pt"><A HREF="#a_009">ITEM 2 &ndash; Unregistered Sales of Equity Securities and Use of Proceeds</A></td>
      <td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">51</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td style="padding-right: 18.65pt"><A HREF="#a_010">ITEM 3 &ndash; Defaults Upon Senior Securities</A></td>
      <td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">53</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td style="padding-right: 18.65pt; text-decoration: underline"><A HREF="#a_011">ITEM 4 &ndash; Mine Safety Disclosures</A></td>
      <td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">53</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td style="padding-right: 18.65pt; padding-left: 45pt; text-decoration: underline; text-indent: -45pt"><A HREF="#a_012">ITEM 5 &ndash; Other Information</A></td>
      <td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">53</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td style="padding-right: 18.65pt; text-decoration: underline"><A HREF="#a_013">ITEM 6 &ndash; Exhibits</A></td>
      <td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">56</font></td></tr>
  </table>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 3 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_001"></A>PART I &ndash; FINANCIAL INFORMATION</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This Quarterly Report includes forward-looking
  statements within the meaning of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;). These statements
  are based on management&rsquo;s beliefs and assumptions, and on information currently available to management. Forward-looking
  statements include the information concerning our possible or assumed future results of operations set forth under the heading
  &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations.&rdquo; Forward-looking statements
  also include statements in which words such as &ldquo;expect,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;intend,&rdquo; &ldquo;plan,&rdquo;
  &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo; &ldquo;consider,&rdquo; or similar expressions are used.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Forward-looking statements are not guarantees
  of future performance. They involve risks, uncertainties, and assumptions. Our future results and shareholder values may differ
  materially from those expressed in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking
  statements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 4 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_002"></A><B>ITEM 1. Financial Statements</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The unaudited condensed
  consolidated financial statements of registrant for the three and nine months ended September 30, 2014 and 2013 are below. The
  condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair
  statement of the results for the interim periods presented. All such adjustments are of a normal and recurring nature.</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Index to Financial Statements</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
  <tr>
      <td style="width: 94%; font: 11pt Times New Roman, Times, Serif">&nbsp;</td>
      <td style="width: 6%; font: 11pt Times New Roman, Times, Serif">&nbsp;</td></tr>
  <tr style="vertical-align: bottom">
      <td style="font: 11pt Times New Roman, Times, Serif; padding-right: 0.8pt">&nbsp;</td>
      <td style="font: bold 11pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-decoration: underline; text-align: right"><font style="font-size: 11pt"><b><u>Page</u></b></font></td></tr>
  <tr style="vertical-align: bottom">
      <td style="font: 11pt Times New Roman, Times, Serif; padding-right: 0.8pt">&nbsp;</td>
      <td style="font: bold 11pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: right"><font style="font-size: 11pt"><b>&nbsp;</b></font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td style="font: 11pt Times New Roman, Times, Serif; padding-right: 24.45pt"><font style="font-size: 11pt">C<A HREF="#a_014">ondensed Consolidated Balance Sheets &ndash; September 30, 2014 (Unaudited)&nbsp;and December 31, 2013</A></font></td>
      <td style="font: 11pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: right"><font style="font-size: 11pt">6</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td style="font: 11pt Times New Roman, Times, Serif; padding-right: 24.45pt"><font style="font-size: 11pt"><A HREF="#a_015">Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2014 and 2013 (Unaudited)</A></font></td>
      <td style="font: 11pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: right"><font style="font-size: 11pt">7</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td style="font: 11pt Times New Roman, Times, Serif; padding-right: 24.45pt"><font style="font-size: 11pt"><A HREF="#a_016">Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2014 and 2013 (Unaudited)</A></font></td>
      <td style="font: 11pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: right"><font style="font-size: 11pt">8</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td style="font: 11pt Times New Roman, Times, Serif; padding-right: 24.45pt"><font style="font-size: 11pt"><A HREF="#a_017">Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2014 and 2013 (Unaudited)</A></font></td>
      <td style="font: 11pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: right"><font style="font-size: 11pt">9</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td style="font: 11pt Times New Roman, Times, Serif; padding-right: 24.45pt"><font style="font-size: 11pt"><A HREF="#a_018">Notes to Condensed Consolidated Financial Statements (Unaudited)</A></font></td>
      <td style="font: 11pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: right"><font style="font-size: 11pt">10</font></td></tr>
  </table>
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 5 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_014"></A>Condensed Consolidated Balance Sheets</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>September 30, 2014 and December 31, 2013</B></P>
  
  <P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; color: Red">&nbsp;</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">September 30,</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">December 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Current Assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="width: 63%; padding-left: 10pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">44,135</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">2,902</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Accounts receivable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-left: 10pt">Inventories</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">599,657</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">177,346</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-left: 10pt">Prepaid expenses and deposits</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">545,409</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-left: 10pt">Other</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,138</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Current assets from non-continuing operations</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">492,806</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Total Current Assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">649,730</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,218,463</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Non-Current Assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Property and equipment, net</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">372,219</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">455,287</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Non-current assets from non-continuing operations</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">153,118</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Total Non-Current Assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">372,219</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">608,405</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Other Assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Deferred financing cost</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">60,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Total Other Assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total Assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,021,949</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,886,868</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Current Liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Accounts payable and accrued expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">554,127</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">197,179</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Current portion of notes payable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,067,426</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">845,396</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Credit facility and other advances</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,134</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Derivative liability</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,814,383</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71,752,773</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Funds received not converted into equity (net of discount)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">215,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Sums due to Global Trade Finance</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Sums due to Global Market Advisors</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">170,889</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">170,889</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Other payables</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">176,836</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Current liabilities from discontinued operations</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,954,051</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,962,611</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Total Current Liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,600,010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,345,683</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Long-term Liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Loans payable, net of current maturities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">22,500</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">203,946</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Total Long-term Liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">203,946</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Total Liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">17,622,510</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">75,549,629</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt">Contingencies</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Stockholder's Deficit</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Preferred stock, Class A Convertible Preferred Stock</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-left: 10pt">100,000,000 shares authorized at September 30, 2014</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-left: 10pt">and December 31, 2013,&nbsp;&nbsp;$.001 par value, 782,701 and 924,366 shares</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">issued and outstanding at September 30, 2014 and December 31, 2013, respectively</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">783</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">924</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Preferred stock, Class Y Convertible Preferred Stock</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-left: 10pt">40,000,000 shares authorized at September 30, 2014</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-left: 10pt">$.001 par value, 35,561,651 shares issued and outstanding</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-left: 10pt">at September 30, 2014 and 0 at December 31, 2013, respectively</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,563</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Common stock, 900,000,000 shares authorized,</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-left: 10pt">$.001 par value 639,988,456 and 405,043,436 shares issued</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">and outstanding at September 30, 2014 and December 31, 2013, respectively</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">639,988</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">405,043</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,312,340</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,019,643</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Accumulated other comprehensive loss</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(186,617</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(198,424</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(64,402,618</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(110,889,947</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Total&nbsp;&nbsp;Stockholder's Deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(16,600,562</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(73,662,761</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total Liabilities and Stockholders' Deficit</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,021,949</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,886,868</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">The accompanying notes are an integral part of
  the unaudited condensed consolidated financial statements</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 6 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_015"></A><B>Condensed Consolidated Statements of Operations</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For The Three and Nine Months Ended September
  30, 2014 and 2013</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center">For the three months ended</TD><TD>&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center">For the nine months ended</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">(restated)</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">(restated)</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 42%">Revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,662,918</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">644,624</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">3,459,607</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">828,888</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Costs of goods sold</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,281,116</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">483,938</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,281,507</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">630,462</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Gross profit</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">381,802</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160,686</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">178,099</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">198,426</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Operating expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Depreciation and amortization</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,697</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,384</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87,069</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,705</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Loss on disposal of assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,516</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-left: 10pt">Impairment of assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">373,060</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">373,060</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">General and administrative</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">341,361</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,166,470</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,815,927</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,927,683</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">753,118</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,197,370</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,276,056</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,947,388</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Operational income/ (loss)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(371,316</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,036,684</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,097,957</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,748,962</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Other income/(expenses)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Change in fair value of derivative liability</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(361,135</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(18,766,197</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">57,095,577</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,850,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Stock issued for settlements</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,237,200</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,237,200</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Gain (loss) on settlement of debt</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(484,028</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Loss on conversion of preferred shares</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16,116</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(36,490</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Other income/(expense)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">660,296</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">460,296</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Interest income/(expense)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">194,581</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(28,929</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,642,960</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(194,673</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">493,742</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,048,442</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,428,885</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,381,970</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Income/(Loss) from continuing operations</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">122,427</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,085,126</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,330,929</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,633,008</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Income/(Loss) from discontinued operations</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(4,347,499</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(325,262</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,843,600</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(962,421</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Earnings before income tax</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(4,225,072</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(25,410,387</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">46,487,329</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,670,587</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Income taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net income</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(4,225,072</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(25,410,387</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">46,487,329</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9,670,587</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 2.5pt">Income (loss) per share (Basic)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.07</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.08</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.03</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 2.5pt">Income (loss) per share (Diluted)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.07</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.04</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 2.5pt">Weighted average shares outstanding (Basic)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">659,999,514</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">384,197,678</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">573,312,300</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">356,544,473</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 2.5pt">Weighted average shares outstanding (Diluted)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">659,999,514</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">384,197,678</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,245,719,364</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">735,405,168</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">The accompanying notes are an integral part of
  the unaudited condensed consolidated financial statements</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 7 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_016"></A>Condensed Consolidated Statements of Comprehensive
  Income / (Loss)</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For The Three and Nine Months Ended September
  30, 2014 and 2013</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center">For the three months ended</TD><TD>&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center">For the nine months ended</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">(restated)</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">(restated)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 40%; text-align: left">Net income (loss)</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(4,225,072</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(25,410,387</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">46,487,329</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">9,670,587</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Other comprehensive loss, net of tax:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Foreign currency translation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(51,526</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(137,095</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">11,808</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(52,289</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Comprehensive income (loss)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(4,276,598</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(25,547,482</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">46,499,137</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9,618,298</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">The accompanying notes are an integral part of
  the unaudited condensed consolidated financial statements</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 8 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_017"></A><B>Condensed Consolidated Statements of Cash
  Flows</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For The Nine Months Ended September 30, 2014
  and 2013</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; color: Red"><B></B></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">(restated)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">OPERATING ACTIVITIES:</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="width: 63%; text-align: left">Net income</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">46,487,329</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">9,670,588</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Depreciation and amortization</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">147,069</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,494</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Debt discount</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Amortization of debt discounts</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,671,252</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,119</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Loss on disposal of assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,876</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Shares issued for settlement of agreement</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">226,797</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,237,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Loss on conversion of preferred shares</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,490</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;(Gain)/loss on settlement of debt</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">484,028</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Shares issued for services</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">92,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Change in fair value of derivative liability</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(57,095,577</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(18,850,333</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;&nbsp;Share based compensation</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,717,015</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,191,202</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Stock Options</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">523,905</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Changes in operating assets and liabilities:</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Accounts receivable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(800</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">143,975</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;&nbsp;Inventories</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(422,311</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(215,942</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Other assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,138</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,703</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;Assets in discontinuing operations</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">658,923</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Liabilities in discontinuing operations</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,962,611</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Prepaid expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">545,409</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17,331</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Accounts payable and accrued expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,775,678</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">661,155</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Deferred revenue</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">207,846</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;Other liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">115,412</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(957,033</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(737,952</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">INVESTING ACTIVITIES:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Proceeds from disposal of vehicles</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,126</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Cash received from acquisition</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,896</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;Purchase of property and equipment</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(17,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(587,411</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(17,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(544,389</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">FINANCING ACTIVITIES:</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Proceeds from funds received from FMS</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">907,839</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Proceeds from issuance of common stock</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Borrowings on line of credit, net</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,134</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Payments to reduce line of credit</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(69,628</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;Proceeds from notes payable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,085,682</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">467,406</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;Payments to notes payable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(109,860</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,003,456</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,305,617</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Effect of change in exchange rate on cash</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">11,808</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(48,418</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;Net&nbsp;&nbsp;(decrease) / increase in cash</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">41,231</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(25,142</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">CASH AT BEGINNING PERIOD</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,902</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87,325</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt">CASH AT END OF PERIOD</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">44,133</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">62,183</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">SUPPLEMENTAL CASH FLOW INFORMATION:</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Cash paid for interest</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Cash paid for income taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">NON-CASH INVESTING AND FINANCING TRANSACTIONS</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;&nbsp;Share based compensation</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">214,286</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;Common shares issued in exchange for preferred shares</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,468,841</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">11,278,686</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;Common shares issued to settle liabilities</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,010,110</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">268,142</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;Common shares issued in relation to investment in a JV</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">378,792</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">335,895</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;Common shares issued in relation to acquisition</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6,755,290</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;Common shares issued for debt conversion</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,244,708</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;Preferred shares converted to ordinary</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(105</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;Preferred shares issued to settle debt</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">210,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">800,932</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; color: Red"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">The accompanying notes are an integral part
  of the unaudited condensed consolidated financial statements</P>
  
  
  <!-- Field: Page; Sequence: 9 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_018"></A><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>1. DESCRIPTION OF BUSINESS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We are involved in the development, manufacturing and sale of diesel,
  gas, CNG and electric buses. We plan to move forward with the production of all-electric buses, as well as begin converting other
  mass transit vehicles into electric powered vehicles. We expect this to be the core focus of our business activities going forward.
  We recently introduced a prototype electric bus, which we named the E-Patriot line. The E-Patriot seats 15-23 passengers, depending
  on configuration and is expected to have a hundred mile range in-between charges when it is ready for market.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We are a corporation originally organized under the laws of the
  State of Delaware in 1996, but re-incorporated in Nevada effective June 3, 2011. We formerly operated under the name GANAS Corp.
  (&ldquo;GANAS&rdquo;). Prior to November 2009, GANAS&rsquo; objective was to obtain through acquisition and/or merger transactions,
  assets, which could benefit our shareholders. Effective November 4, 2009, GANAS acquired Go Green USA LLC, a Nevada limited liability
  company organized on April 28, 2009 (&ldquo;Go&rdquo;), in a share exchange transaction pursuant to which newly issued shares of
  GANAS common stock were issued in exchange for all of the issued and outstanding membership interests of Go (the &ldquo;Go Merger&rdquo;).
  The Go Merger resulted in GANAS issuing 1,436,202 shares of its common stock with par value $0.001 for each 1% membership interest
  in Go, following which GANAS changed its name to Green Automotive Company Corporation. Effective September 30, 2011, we effected
  a Change of Domicile, re-incorporating in Nevada and simplifying our name to Green Automotive Company, among other things (the
  &ldquo;Re-Incorporation&rdquo;).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Matter of Time Merger</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On September 1, 2011, Green Automotive Company entered into a Stock
  Purchase Agreement and Escrow Agreement with Mark E. Crone (&ldquo;Crone&rdquo;) and Bosch Equities, L.P. (&ldquo;Bosch&rdquo;),
  under which we purchased 100% of the outstanding equity of Matter of Time I Co., a Nevada corporation (&ldquo;MOT&rdquo;), and
  extinguished a repayment obligation of MOT totaling $6,000, all in exchange for $30,000.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On February 10, 2012, Green Automotive Company entered into a Merger
  Agreement and Plan of Reorganization with Matter of Time I Co., a Nevada corporation (&ldquo;MOT&rdquo;) (the &ldquo;MOT Agreement&rdquo;).
  Under the MOT Agreement, at the closing of the transaction contemplated by the MOT Agreement, MOT dissolved into and became a part
  of Green Automotive Company, with Green Automotive Company being the surviving corporation and assuming MOT&rsquo;s status as a
  reporting issuer under the Securities Exchange Act of 1934, as amended. On December 14, 2012 the transactions contemplated by the
  MOT Agreement closed (the &ldquo;Closing&rdquo;). As a result of the Closing, MOT was merged out of existence and Green Automotive
  Company became a reporting issuer under the Securities Exchange Act of 1934, as amended.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Liberty Transaction</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On June 28, 2012, we entered into a Stock Exchange Agreement (the
  &ldquo;Liberty Agreement&rdquo;) with Liberty Electric Cars Limited., an England and Wales private company limited (&ldquo;LEC&rdquo;),
  and its wholly-owned subsidiary LEC 2 Limited, an England and Wales private company limited (&ldquo;LEC2&rdquo; and together with
  LEC, the &ldquo;LEC Entities&rdquo;), under which our wholly-owned subsidiary, Liberty Automotive Group, Inc. (formerly GAC EV
  Motors Inc.), a Nevada corporation (&ldquo;LAG&rdquo;) agreed to purchase 100% of the issued and outstanding securities of LEC
  (the &ldquo;LEC Shares&rdquo;), that owns 100% of the issued and outstanding securities of LEC2 (the &ldquo;LEC2 Shares&rdquo;)
  (collectively the &ldquo;LEC Securities&rdquo;) in exchange for the transfer of Thirty Nine Million Seven Hundred Forty Two Thousand
  One Hundred Seventy Eight (39,742,178) shares of our common stock held by LAG to the LEC Shareholders. The value of these shares
  at the close of trading on the day of issuance was $17,486,558. These shares represented approximately 8.19% of our outstanding
  voting control at the time. We also issued to Mr. West and Mr. Hobday, the executives of LEC, a total of 300,000 shares of our
  Series A Preferred Stock (subject to forfeiture on a pro rata basis over a three year period) in exchange for the non-competition
  provisions in their independent contractor agreements. This transaction closed on July 23, 2012. Subsequently, on or about August
  15, 2014, LEC, along with each of LEC&rsquo;s wholly owned subsidiaries, ceased business operations.</P>
  
  
  <!-- Field: Page; Sequence: 10 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As a result of the Liberty Transaction, we acquired Liberty Electric
  Company (LEC), a company that designed and developed electric vehicle drive solutions for use in its own converted vehicles and
  for sale to original equipment manufacturers (OEMs) for incorporation into their production. LEC&rsquo;s engineers contributed
  to the invention of innovative EV drive train technologies that was believed to be employable in a wide variety of vehicle platforms.
  LEC was also a contributing member of a number of advanced research programs for developing next generation electric vehicle (&ldquo;EV&rdquo;)
  solutions. These programs included the &ldquo;Deliver&rdquo; project where LEC collaborated with &ldquo;tier one&rdquo; automotive
  companies to develop a pure electric commercial vehicle, and the &ldquo;Motore&rdquo; project in which LEC collaborated with &ldquo;tier
  one&rdquo; automotive companies and universities to develop a &ldquo;rare earth&rdquo; free electric motor technology. Additionally,
  LEC created after sales support for EVs including the Modec truck and the G-Wiz car, by developing a comprehensive aftermarket
  maintenance program throughout Europe for its customers&rsquo; electric trucks and cars.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Due to its experience in EV technologies and in servicing EVs, LEC
  had an agreement with a large U.S. truck manufacturer for the on-going support of electric vehicles run by its key clients in Europe.
  LEC continued to take care of all warranty support when required by these customers, all of whom run fleets of electric commercial
  vehicles across Europe. This truck manufacturer&rsquo;s customers include major companies such as FedEx, UPS and Veolia, who are
  using the first &ldquo;ground up&rdquo; electric trucks known as the &ldquo;Modec&rdquo; that were launched some four years ago
  for the purpose of making pollution free deliveries in urban areas.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Pursuant to the Liberty Agreement, we also issued to GAC Automotive
  Services, Inc., a Nevada corporation and one of our wholly-owned subsidiaries (&ldquo;GAC Auto&rdquo;) Ten Million (10,000,000)
  shares of Series B Convertible Preferred Stock (the &ldquo;Series B Shares&rdquo;). The issuance of the Series B shares to GAC
  Auto was not part of the purchase price of the LEC Entities and was not compensation to the LEC Entities or LEC Shareholders, but
  was reserved for issuance to shareholders of certain entities that LEC and/or LEC2 have been in negotiations with at the time of
  execution of the Liberty Agreement if those entities and/or assets were purchased by us or our subsidiaries. Subsequently, instead
  of issuing the B shares, we agreed to issue 59,000,000 GACR shares to the former shareholders for LEC&rsquo;s acquisitions of OEC
  International Limited (OEC) and Footloose 4x4 Limited (Footloose). However, the 59,000,000 shares were never issued and we have
  never consolidated OEC nor Footloose into our financial statements. Subsequently, LEC and its subsidiaries, excluding Footloose,
  ceased operations on or about August 15, 2014, and are in liquidation under a voluntary liquidation in accordance with Section
  98 of the United Kingdom&rsquo;s Insolvency Act of 1986. LEC began to wind down Footloose in late 2013. A formal petition to liquidate
  Footloose was presented on 3 July 2014 and a formal Resolution for Voluntary Winding-up was granted August 27, 2014. Legal representation
  of the liquidation was facilitated by Everys Solicitors, Taunton, United Kingdom.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">To date, all of the Series B Shares are still held by GAC Auto.
  For reporting purposes, the Series B Preferred Stock is eliminated upon consolidation.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Newport Coachworks Transaction</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On October 12, 2012, we entered into an Acquisition and Stock Exchange
  Agreement (the &ldquo;NCWI Agreement&rdquo;) with Newport Coachworks, Inc., a California corporation (&ldquo;NCWI&rdquo;), under
  which we agreed to purchase 100% of the issued and outstanding securities of NCWI (the &ldquo;NCWI Shares&rdquo;) from Mr. Carter
  Read, NCWI&rsquo;s sole shareholder, in exchange for the transfer of Five Million (5,000,000) shares of our common stock due at
  the closing of the transaction (the &ldquo;GAC Closing Shares&rdquo;), and up to an additional Twenty Two Million (22,000,000)
  shares of our common stock (the &ldquo;GAC Additional Shares&rdquo; and together with the GAC Closing Shares, the &ldquo;GAC Shares&rdquo;)
  to vest as follows: upon NCWI obtaining bona fide, binding purchase orders, with cash down payment standard in the industry to
  NCWI, from third party purchasers requiring NCWI to manufacturer Sixty (60) buses with compressed natural gas engines at NCWI&rsquo;s
  manufacturing facility (each a &ldquo;Qualified Purchase Order&rdquo;) within the first twelve (12) months following the payment
  of one-half of the initial forecasted funding of $500,000. This transaction closed on October 12, 2012. On or by July 18, 2013,
  27,000,000 GAC shares were issued to Mr. Read.</P>
  
  
  <!-- Field: Page; Sequence: 11 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>1. DESCRIPTION OF BUSINESS (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Going Green Transaction</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On January 31, 2013, the Company signed a binding agreement to buy
  U.K.-based electric vehicle distributor Going Green Limited, which operated under the brand name &ldquo;GoingGreen.&rdquo; Founded
  in 2002, it sold over 1,400 G-Wiz vehicles, an electric vehicle manufactured in India by the Indo-Reva Electric Car Company. The
  acquisition was completed on or about April 1, 2013 when 1,562,498 shares of GAC common stock were authorized for exchange for
  100% of the issued and outstanding securities of Going Green Limited and 150,501 shares of GAC common stock for issuance to former
  creditors of Going Green. Due to a temporary restraining order in an unrelated litigation in Utah by us against a former stockholder
  the shares were not released by our transfer agent until June 24, 2013. Ian Hobday, our then CEO, and Daren West, our former CFO,
  served as directors of Going Green prior to the acquisition. On or about August 15, 2014, Going Green ceased operations and is
  in liquidation under a voluntary liquidation in accordance with Section 98 of the United Kingdom&rsquo;s Insolvency Act of 1986.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6.75pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">With creditors&rsquo; approval, on or about August 27, 2014, former
  LEC and Going Green staff members, led by Clive Southwell, a director of the U.K. businesses at the time LEC and Going Green ceased
  operations, along with financial support from former GAC director Nicholas Hewson and our then CEO Ian Hobday, purchased the assets
  of Going Green through a company they organized, Clean Transport and Technology Limited (&ldquo;CTT&rdquo;) for a purchase price
  of &pound;22,800 (&pound;19,000 plus &pound;3,280 value added tax (VAT)) and the assets of LEC2 for &pound;7,200 (&pound;6,000
  plus &pound;1,200 VAT) for a total of &pound;30,000. The assets of LEC2 consisted primarily of spare parts and batteries, and the
  assets of Going Green consist primarily of parts, equipment and used vehicles. The sale proceeds were paid to Lameys and the sales
  were approved at the respective creditors&rsquo; committee meetings when they were held.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Viridian Motor Corporation Transaction</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about January 9, 2014 we acquired 21.63% of Viridian Motor
  Corporation (VMC), a US-based electric truck manufacturer. VMC was a company devoted to advancing twenty-first century transportation
  technology using alternative fuels and propulsion systems to build fully electric, light duty trucks, which included their own
  electric drive train and unique battery packs. In February 2014 we acquired an additional 1.5% of the company. On January 6, 2014,
  we issued 1,292,270 shares to Burton Neil and Dale Nyhus for an obligation of $173,060 related to the acquisition. The value of
  the issued shares on the day of issuance was $206,763. For the period ending September 30, 2014, we impaired the value of the investment
  in VMC by 100%.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>2. BASIS OF PRESENTATION </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The accompanying unaudited condensed interim consolidated financial
  statements have been prepared in accordance with generally accepted accounting principles (&ldquo;GAAP&rdquo;) as promulgated in
  the United States of America.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The unaudited condensed interim consolidated financial statements
  at September 30, 2014 and for the three and nine-month periods ended September 30, 2014 and 2013 are unaudited, but include all
  adjustments, consisting of normal recurring entries, which our management believes to be necessary for a fair presentation of the
  periods presented. Interim results are not necessarily indicative of results for a full year.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The summary of significant accounting policies presented below is
  designed to assist in understanding the Company&rsquo;s condensed consolidated financial statements. Such condensed consolidated
  financial statements and accompanying notes are the representations of the Company&rsquo;s management, who is responsible for their
  integrity and objectivity. These accounting policies conform to GAAP in all material respects, and have been consistently applied
  in preparing the accompanying condensed consolidated financial statements.</P>
  
  
  <!-- Field: Page; Sequence: 12 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Principles of Consolidation</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company&rsquo;s unaudited condensed consolidated financial statements
  include the assets, liabilities and operating results of majority-owned subsidiaries. The Company does not hold significant variable
  interests in any variable interest entities. All significant intercompany accounts and transactions have been eliminated.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Reverse Merger Accounting</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The MOT Merger was accounted for as a reverse-merger and recapitalization
  in accordance with accounting principles generally accepted in the United States of America (&ldquo;GAAP&rdquo;). Green Automotive
  Company was the acquirer for financial reporting purposes and MOT was the acquired company. Consequently, the assets and liabilities
  and operations that are reflected in the historical financial statements prior to the Merger will be those of Green Automotive
  Company and will be recorded at the historical cost basis of the Company. The consolidated financial statements after completion
  of the Merger include the assets and liabilities of Green Automotive Company. Common stock and the corresponding capital amounts
  of the Company pre-merger have been retroactively restated as capital stock shares reflecting the exchange ratio in the Merger.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Going Concern</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our condensed consolidated financial statements have been prepared
  assuming the Company will continue as a going concern. However, as of September 30, 2014, we have sustained recurring operating
  losses, have outstanding payables, a stockholders&rsquo; deficit of $16,600,561, have ceased operations in the United Kingdom and
  have insufficient operating capital. These conditions, among others, give rise to substantial doubt about our ability to continue
  as a going concern and increase the likelihood of bankruptcy. Management is continuing to seek additional capital to fund our ongoing
  business and improve the profitability of existing operations. Until such time, our working capital needs must be funded through
  the issuance of additional debt and equity instruments; however, there can be no assurance that we will receive the sums required
  at the times and in the amounts needed, or that any funding will not be accompanied by conditions unfavorable to us. Management
  believes these steps may provide us with adequate funds to sustain our continuing existence. There is, however, no assurance that
  the steps taken by management will meet all of our needs or that we can continue as a going concern. The accompanying condensed
  consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty or from
  bankruptcy.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Use of Estimates</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">The preparation of the condensed consolidated
  financial statements requires our management to make a number of estimates and assumptions relating to the reported amount of assets
  and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements
  and the reported amounts of revenues and expenses during the reporting period. The assumptions used by management in future estimates
  could change significantly due to changes in circumstances, including, but not limited to, challenging economic conditions. Accordingly,
  future estimates may differ significantly.</FONT><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif"> S</FONT><FONT STYLE="font-size: 10pt">ignificant
  estimates and assumptions included in our condensed consolidated financial statements relate to the valuation of long-lived assets,
  inventory reserves, accruals for potential liabilities, and valuation assumptions related to derivative liability, equity instruments
  and share based compensation.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Cash and Cash Equivalents</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Cash and cash equivalents consist of amounts held as bank deposits
  and highly liquid debt instruments purchased with an original maturity of three months or less. The Company had no cash equivalents
  as of September 30, 2014 and December 31, 2013.</P>
  
  
  <!-- Field: Page; Sequence: 13 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Discontinued Operations</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about August 15, 2014, our United Kingdom based subsidiaries,
  including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC&rsquo;s wholly owned subsidiaries
  (collectively, the U.K. Companies), ceased business operations. As a result, we are reporting the operational results of the U.K.
  Companies under Discontinued Operations. Operational results under Discontinued Operations includes a 100% impairment of all U.K.
  Companies&rsquo; assets, a full write down of the value of each company&rsquo;s equity (or deficit), and the net earnings or losses
  incurred by each. We will continue to carry each company&rsquo;s liabilities on our books under liabilities from discontinued operations
  until such time as the voluntary liquidations currently underway are finalized. Additionally, comparative periods, within our financial
  statements and accompanying notes, have been reclassified to show financial data for our former U.K. Companies under discontinued
  operations. Such reclassifications had no impact on previously reported net losses.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Recent Accounting Pronouncements</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Adopted</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In February 2013, Financial Accounting Standards Board (&ldquo;FASB&rdquo;)
  issued Accounting Standards Update (&ldquo;ASU&rdquo;)&nbsp;2013-04, <I>Obligations Resulting from Joint and Several Liability
  Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. </I>The objective of the amendments in
  this update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several
  liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting
  date, except for those obligations addressed within existing guidance in U.S. GAAP. The amendment requires an entity to measure
  obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope
  of this guidance is fixed at the reporting date as the sum of the amount the reporting entity agreed to pay on the basis of its
  arrangement among its co-obligors and an additional amount the reporting entity expects to pay on behalf of its co-obligors. The
  entity is required to disclose the nature and amount of the obligation as well as other information about those obligations. The
  Company adopted this ASU as of January 1, 2014.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On July 18, 2013, the FASB issued ASU 2013-11, <I>Income Taxes (Topic
  740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward
  Exists. </I>Topic 740 does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit
  when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The objective of the amendments
  in this update is to eliminate that diversity in practice. The Company adopted this ASU as of January 1, 2014. This ASU did not
  have an effect on our financial statements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Not Adopted</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Other recent pronouncements issued by FASB (including its Emerging
  Task Force), the American Institute of Certified Public Accountants, and the United States Securities and Exchange Commission did
  not or are not believed by management to have a material impact on the Company&rsquo;s present or future financial statements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Reclassifications</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Certain prior year amounts have been reclassified to conform to
  the current year presentation for discontinued operations in all UK entities. Such reclassifications had no impact on previously
  reported net losses.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>
  
  
  <!-- Field: Page; Sequence: 14 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Accounts Receivable</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Accounts receivable consists of trade receivables, which are recorded
  at the invoiced amount, net of taxes, allowances for doubtful accounts and prompt payment discounts. Trade receivables do not carry
  interest. The allowance for doubtful accounts represents management&rsquo;s estimate of the amount of probable credit losses in
  existing accounts receivable, as determined from a review of past due balances and other specific account data. Account balances
  are written off against the allowance when management determines the receivable is uncollectible.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Investments in Joint Ventures</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company applies the equity method for the 30% investment to
  its joint venture interest in Powabyke, a privately-held UK company held by our wholly owned subsidiary Liberty Electric Company
  Limited, and our 23.13% investment in Viridian Motor, a Virginia corporation, since quoted market prices are not available and
  we have the ability to exercise influence over operating and financial policies of the joint venture. Significant influence is
  generally defined as 20% to 50% ownership in the voting stock of an investee. Under the equity method, we initially record such
  investments at cost and then adjust the carrying value of the investments to recognize the proportional share of the equity-accounted
  affiliate&rsquo;s net income (loss) including changes in capital of the affiliates. In addition, dividends received from the equity-accounted
  company reduce the carrying value of our investment. If there is an other-than-temporary decline in the market value of the investment,
  an impairment charge is recorded. For the period ending September 30, 2014, we impaired the value of the investment in Viridian
  Motor by 100%. Our investment in Powabyke was sold during the period ending September 30, 2014.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Inventories</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company&rsquo;s inventories are valued at cost, as determined
  by the first-in, first out (FIFO) method; in aggregate such valuations are not in excess of market.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Concentrations</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company currently maintains substantially all of its cash with
  major financial institutions. At times, cash balances may be in excess of the amounts insured by the Federal Deposit Insurance
  Corporation.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Comprehensive Income (Loss)</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In June 2011, the Financial Accounting Standards Board (&ldquo;FASB&rdquo;)
  issued Accounting Standards Update (&ldquo;ASU&rdquo;) No. 2011-05, <I>Presentation of Comprehensive Income</I> (&ldquo;ASU 2011-05&rdquo;),
  which amends FASB Codification Topic 220 on comprehensive income disclosures. The new guidance allows an entity to present components
  of net income and other comprehensive income in one continuous statement, referred to as the statement of comprehensive income,
  or in two separate, but consecutive statements, while eliminating the option to report other comprehensive income and its components
  in the statement of changes in shareholders&rsquo; equity. The provisions of ASU 2011-05 were adopted in 2012. The adoption of
  ASU 2011-05 did not impact the Company&rsquo;s consolidated financial position, results of operations or cash flows as it required
  only a change in the format of presentation.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Property and Equipment</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Property and equipment consisting of leasehold improvements, furniture
  and fixtures, equipment and vehicles are stated at cost. Property and equipment are depreciated using the straight-line method
  over the estimated service lives ranging from three to seven years. Maintenance and repairs are expensed as incurred and improvements
  are capitalized. Gains or losses on the disposition of fixed assets are recorded upon disposal.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 15 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Impairment of Long-Lived Assets</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Long-lived assets are reviewed for impairment whenever events or
  changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held
  and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to
  be generated by the asset.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">If the carrying amount of an asset exceeds its undiscounted estimated
  future cash flows, an impairment review is performed. An impairment charge is recognized in the amount by which the carrying amount
  of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and
  reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities
  of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of
  the balance sheet. The Company determined that there was an indicator of impairment in goodwill and other intangibles during the
  year ended December 31, 2013 because of the lowered revenue and cash flow projections. The Company uses the present value technique
  for impairment testing. At September 30, 2014, we fully impaired our investment of $173,060 in Viridian Motors and the full carrying
  value of $200,000 of our investment in World Energy Asset Management. Additionally, we fully impaired the investment values and
  assets of our U.K. Companies, the expense thereof was then reclassified and presented under discontinued operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Derivative Instruments</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The fair value of derivative instruments is recorded and shown separately
  under current liabilities. Changes in the fair value are recorded in the condensed consolidated statement of income under other
  income (expense).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company evaluates all of its financial instruments to determine
  if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments
  that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued
  at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative
  financial instruments, the Company uses a weighted average Black-Scholes-Merton option pricing model to value the derivative instruments
  at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments
  should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities
  are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument
  could be required within 12 months of the balance sheet date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Fair Value Measurements</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">ASC 820, &ldquo;<I>Fair Value Measurements</I>&rdquo;, requires
  an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820
  establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure
  fair value. A financial instrument&rsquo;s categorization within the fair value hierarchy is based upon the lowest level of input
  that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure
  fair value: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities;
  Level 2, inputs other than level one that are either directly or indirectly observable such as quoted prices for identical or similar
  assets or liabilities on markets that are not active; and Level 3, defined as unobservable inputs in which little or no market
  data exists, therefore requiring an entity to develop its own assumptions.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 16 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Income Taxes</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We account for income taxes under the asset and liability method.
  Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial
  statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities
  are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected
  to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
  in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets
  to the amount expected to be realized.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As a result of the implementation of certain provisions of ASC 740,
  Income Taxes (&ldquo;ASC 740&rdquo;), which clarifies the accounting and disclosure for uncertainty in tax positions, as defined,
  ASC 740 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to
  accounting for income taxes. We adopted the provisions of ASC 740 as of January 1, 2007, and have analyzed filing positions in
  each of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax years in
  these jurisdictions. We have identified the U.S. federal and California as our &quot;major&quot; tax jurisdictions. Generally,
  we remain subject to Internal Revenue Service examination of our 2007 through 2013 U.S. federal income tax returns, and remain
  subject to California Franchise Tax Board examination of our 2007 through 2013 California Franchise Tax Returns. However, we have
  certain tax attribute carry forwards which will remain subject to review and adjustment by the relevant tax authorities until the
  statute of limitations closes with respect to the year in which such attributes are utilized.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We believe that our income tax filing positions and deductions will
  be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore,
  no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In addition, we did not record a cumulative
  effect adjustment related to the adoption of ASC 740. Our policy for recording interest and penalties associated with income-based
  tax audits is to record such items as a component of income taxes.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Revenue Recognition</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We recognize revenues related to annual membership income and service
  of electric vehicles in accordance with Financial Accounting Standards Board Accounting Standards Codification (&ldquo;FASB ASC&rdquo;)
  No. 605, <I>Revenue Recognition</I>. Revenue is recognized when we have evidence of an arrangement, a determinable fee, and when
  collection is considered to be probable and services are provided. In the event that final acceptance of our product by the customer
  is uncertain, revenue is deferred until all acceptance criteria have been met. In the event we have amounts billed or collected
  in accordance with contractual terms in advance of when the work is performed we treat these as deferred revenues. For us, such
  advance payments primarily relate to the Company's grant project and E-Care membership scheme through our U.K. Companies. Due to
  the liquidation of the U.K. Companies, advance payments received for the current and comparative periods have been reclassified
  under discontinuing operations. Historically, our deferred revenue has included the following:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Grant Income</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Grant income - not recognized until a grant claim has been submitted
  and approved by Government representatives.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>E-tech services</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Revenues from consultancy services - recognized only when all services
  have been rendered and collectability is reasonably assured.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>E-Care services</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Revenues from maintenance, repair, and overhaul services - recognized
  only when all services have been rendered and collectability is reasonably assured.</P>
  
  
  <!-- Field: Page; Sequence: 17 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Earnings per Common Share (as Restated)</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company computes net income per share in accordance with
  ASC 260, &quot;Earnings per Share.&quot; ASC 260 requires presentation of both basic and diluted earnings (loss) per share
  (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common
  shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all
  dilutive potential common shares outstanding during the period including 632,701 Series A Convertible Preferred Stock for
  September 30, 2014 (net of 150,000 forfeit shares) and 608,475 for September 2013 (net of 300,000 forfeit shares), using the
  if-converted method, 0 stock options for September 30, 2014, and 18,000,000 for September 30, 2013 using the treasury stock
  method, 35,562,651 Series Y Convertible Preferred Stock for September 30, 2014, and 0 for September 30, 2013 using the
  if-converted method, and 231,923,077 shares for September 30, 2014 and 2,013,070 shares for September 30, 2013 for
  convertible loan notes, using the if-converted method. In computing diluted EPS, the average stock price for the period is
  used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS
  excludes all dilutive potential common shares if their effect is anti-dilutive.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Share-Based Payment Arrangements</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Generally, all forms of share-based payments, including stock option
  grants, restricted stock grants and stock appreciation rights are measured at their fair value on the awards&rsquo; grant date,
  based on the estimated number of awards that are ultimately expected to vest. Share-based compensation awards issued to non-employees
  for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment,
  whichever is more readily determinable. The expenses resulting from share-based payments are recorded in operating expenses in
  the condensed consolidated statement of operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>4. ACQUISITIONS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On January 31, 2013, the Company signed a binding agreement to buy
  UK-based electric vehicle distributor Going Green Limited. Trading under the brand name, &ldquo;GoinGreen,&rdquo; it sold over
  1,400 G-Wiz electric vehicles, making it one of Europe&rsquo;s largest single retailers of electric vehicles. Going Green Limited
  was founded in 2002 and in the early days, set itself the mission to minimize the effects of climate change by encouraging carbon-neutral
  motoring. The company pioneered electric vehicles in the UK with the G-Wiz vehicle, an electric vehicle manufactured in India by
  the Indo-Reva Electric Car Company. The deal was completed on April 1, 2013 when 1,562,498 shares of GAC common stock was authorized
  for exchange for 100% of the issued and outstanding securities of Going Green Limited plus 150,501 shares of GAC common stock was
  authorized for issuance to former creditors of Going Green. Due to a temporary restraining order in an unrelated litigation in
  Utah by us against a former stockholder the shares were not released by our transfer agent until June 24, 2013.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 18 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>4. ACQUISITIONS (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The allocation of the purchase price and the estimated fair market
  values of the assets acquired and liabilities assumed of Going Green Limited are shown below.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 70%; font-size: 9pt">Cash</TD><TD STYLE="width: 10%; font-size: 9pt">&nbsp;</TD>
      <TD STYLE="width: 1%; font-size: 9pt; text-align: left">$</TD><TD STYLE="width: 18%; font-size: 9pt; text-align: right">14,896</TD><TD STYLE="width: 1%; font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 9pt; text-align: left">Accounts receivable</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">29,379</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 9pt">Prepayments</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">19,623</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 9pt">Inventories</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">75,693</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 9pt; text-align: left">Other current assets</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">27,845</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 9pt; text-align: left">Property and equipment, net of accumulated depreciation</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">14,653</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 9pt; padding-bottom: 1pt">Goodwill</TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 9pt; text-align: right">769,890</TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;&nbsp;&nbsp;Total assets acquired</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">951,979</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 9pt">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 9pt; text-align: left">Credit Line</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">1,584</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 9pt; text-align: left">Accounts payable and accrued expenses</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">81,313</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 9pt; text-align: left">Deferred revenue</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">34,983</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 9pt; text-align: left">Income Tax payable</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">62,345</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 9pt; padding-bottom: 1pt">Other</TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 9pt; text-align: right">206,464</TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 9pt; text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;Total liabilities assumed</TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 9pt; text-align: right">386,689</TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 9pt">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 9pt">Purchase Price</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">565,290</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 9pt">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 9pt; font-weight: bold; text-align: left">Final Consideration</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 9pt; text-align: left">1,562,498 of common stock issued @ $0.33 in exchange for equity</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt; text-align: right">515,625</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 9pt; text-align: left; padding-bottom: 2.5pt">150,501 of common stock issued @ $0.33 to settle debt</TD><TD STYLE="font-size: 9pt; padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 9pt; text-align: right">49,665</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 9pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The acquisition method of accounting is based on ASC Subtopic 805-10,
  &ldquo;Business Combinations,&rdquo; and uses the fair value concepts defined in ASC Subtopic 820-10, &ldquo;Fair Value Measurements
  and Disclosures&rdquo;. The purchase price for Going Green businesses was allocated to the net tangible and intangible assets based
  upon their fair values as of the respective acquisition dates. The allocation of the purchase price was based upon a valuation
  and the estimates and assumptions were subject to change within the measurement period. The excess of the purchase price over the
  fair values of the net tangible assets and intangible assets, if any, was recorded as goodwill and is generally driven by our expectations
  of our ability to realize synergies and achieve our strategic growth objectives.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The goodwill recorded in connection with the Going Green acquisitions
  was $769,890, on the transaction acquisition date. In accordance with U.S. GAAP, impairment testing for goodwill is performed at
  least annually. The Company performs its annual impairment test as of December 31.&nbsp;Goodwill is tested for impairment between
  annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit
  below its carrying value.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The impairment test for goodwill uses a two-step approach, which
  is performed at the entity level as the Company has one reporting unit. Step 1 compares the fair value of the reporting unit to
  its carrying value including goodwill. If the carrying value exceeds the fair value, there is a potential impairment and Step 2
  must be performed. Step 2 compares the carrying value of the reporting unit&rsquo;s goodwill to its implied fair value (i.e., the
  fair value of the reporting unit less the fair value of the unit&rsquo;s assets and liabilities, including identifiable intangible
  assets). If the carrying value of goodwill exceeds its implied fair value, the excess is recorded as an impairment.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company performed its annual test of goodwill as of December
  31, 2013. The Company determined the fair value of the reporting unit exceeded the carrying value of the reporting unit.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For the year ended December 31, 2013, the Company concluded there
  were indicators of potential goodwill impairment, including the decline in the value of the Company&rsquo;s revenue recognition.
  As a result of identifying indicators of impairment, the Company performed an impairment test of goodwill as of December&nbsp;31,
  2013.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 19 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>4. ACQUISITIONS (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In performing Step 1 of the impairment test, the Company estimated
  the fair value of the reporting unit using the market approach for purposes of estimating the total enterprise value for the Company.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The market approach is based on the guideline publicly traded company
  method to determine the fair value of the reporting unit. Under this method, market multiples ratios were applied to the reporting
  unit&rsquo;s earnings with consideration given to the Company&rsquo;s size, product offerings, growth, and other relevant factors
  compared to those of the guideline companies. The guideline companies selected were engaged in the same or a similar line of business
  as the Company. Market multiples were then selected based on consideration of risk, growth, and profitability differences between
  the Company and the guideline companies. The selected market multiples were then multiplied by the Company&rsquo;s earnings streams
  for the twelve months ended December, 2013.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Based on the above analysis, it was determined that the carrying
  value of the reporting unit including goodwill exceeded the fair value of the reporting unit, requiring the Company to perform
  Step 2 of the goodwill impairment test to measure the amount of impairment loss, if any.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In performing Step 2 of the goodwill impairment test, the Company
  compared the implied fair value of the reporting unit&rsquo;s goodwill to its carrying value of goodwill. This test resulted in
  a non-cash, goodwill impairment charge of $769,890 which was recognized during the year ended December 31, 2013. This charge had
  no impact on our cash flows or our compliance with debt covenants.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The following table sets forth the balance of the Company&rsquo;s
  goodwill as of December 31, 2013:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 9pt Times New Roman, Times, Serif">
  <tr>
      <td style="width: 41%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 12%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 12%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 14%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 13%">&nbsp;</td></tr>
  <tr style="vertical-align: bottom">
      <td style="font-size: 10pt">&nbsp;</td>
      <td style="font-size: 10pt">&nbsp;</td>
      <td colspan="2" style="border-bottom: black 1pt solid">
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></P>
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></P></td>
      <td style="font-size: 8.5pt">&nbsp;</td>
      <td colspan="2" style="border-bottom: black 1pt solid; font-size: 8.5pt; font-weight: bold; text-align: center"><font style="font-size: 8.5pt"><b>Additions</b></font></td>
      <td style="font-size: 8.5pt">&nbsp;</td>
      <td colspan="2" style="border-bottom: black 1pt solid; font-size: 8.5pt; font-weight: bold; text-align: center"><font style="font-size: 8.5pt"><b>Impairments</b></font></td>
      <td style="font-size: 8.5pt">&nbsp;</td>
      <td colspan="2" style="border-bottom: black 1pt solid">
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></P>
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2013</b></P></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td><font style="font-size: 9pt">Goodwill, gross</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">-</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">769,890&nbsp;</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">(769,890)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">-</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td><font style="font-size: 9pt">Accumulated impairment losses</font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">-</font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">-&nbsp;</font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">-&nbsp;</font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">-</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td><font style="font-size: 9pt">Total goodwill, net</font></td>
      <td>&nbsp;</td>
      <td style="border-bottom: black 2.25pt double"><font style="font-size: 9pt">$</font></td>
      <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 9pt">-</font></td>
      <td>&nbsp;</td>
      <td style="border-bottom: black 2.25pt double"><font style="font-size: 9pt">$</font></td>
      <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 9pt">769,890&nbsp;</font></td>
      <td>&nbsp;</td>
      <td style="border-bottom: black 2.25pt double"><font style="font-size: 9pt">$</font></td>
      <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 9pt">(769,890)</font></td>
      <td>&nbsp;</td>
      <td style="border-bottom: black 2.25pt double"><font style="font-size: 9pt">$</font></td>
      <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 9pt">-</font></td></tr>
  </table>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The following are unaudited pro-forma results of operations as if
  the acquisition has occurred at the beginning of the period for the three and nine months ended September 30, 2014 and 2013. Additionally,
  the financial data herein have been reclassified to show revenues and expenses for Going Green, as well as Liberty Electric Company
  and its subsidiaries, under Income/(Loss) from discontinued operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 20 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Pro-forma (unaudited)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For The Three and Nine Months Ended September
  30, 2014 and 2013</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 9pt Sans-Serif; margin: 0; color: Red"><B></B></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center">For the three months ended</TD><TD>&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center">For the nine months ended</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">(restated)</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">(restated)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 42%">Revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,662,918</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">644,624</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">3,459,607</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">828,888</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Costs of goods sold</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,281,116</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">483,938</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,281,507</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">630,462</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Gross profit</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">381,802</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160,686</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">178,099</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">198,426</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Operating expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Depreciation and amortization</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,697</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,384</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87,069</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,705</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Loss on disposal of assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,516</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-left: 10pt">Impairment of assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">373,060</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">373,060</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">General and administrative</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">341,361</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,166,470</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,815,927</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,927,683</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">753,118</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,197,370</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,276,056</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,947,388</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Operational income/ (loss)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(371,316</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,036,684</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,097,957</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,748,962</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Other income/(expenses)</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Change in fair value of derivative liability</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(361,135</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(18,766,197</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">57,095,577</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,850,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Stock issued for settlements</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,237,200</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,237,200</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Gain (loss) on settlement of debt</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(484,028</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Loss on conversion of preferred shares</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16,116</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(36,490</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Loss on conversion of preferred shares</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">660,296</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">460,296</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Other income/(expense)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">194,581</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(28,929</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,642,960</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(194,673</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">493,742</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,048,442</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,428,885</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,381,970</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Income/(Loss) from continuing operations</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">122,427</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,085,126</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,330,929</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,633,008</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Income/(Loss) from discontinued operations</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(4,347,499</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(325,261</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,843,600</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,004,407</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Earnings before income tax</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,225,072</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,410,387</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,487,329</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,628,601</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Income taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net income</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(4,225,072</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(25,410,387</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">46,487,329</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9,628,601</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt">Income (loss) per share (Basic)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.07</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.08</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.03</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt">Income (loss) per share (Diluted)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.07</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.04</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt">Weighted average shares outstanding (Basic)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">659,999,514</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">384,197,678</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">573,312,300</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">356,544,473</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt">Weighted average shares outstanding (Diluted)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">659,999,514</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">384,197,678</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,245,719,364</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">735,405,168</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt Sans-Serif; margin: 0; color: Red"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about August 15, 2014, Going Green ceased operations and is
  in liquidation under a voluntary liquidation in accordance with Section 98 of the United Kingdom&rsquo;s Insolvency Act of 1986.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about January 9, 2014 we acquired 21.63% of Viridian Motor
  Corporation (VMC), a US-based electric truck manufacturer. VMC was a company devoted to advancing twenty-first century transportation
  technology using alternative fuels and propulsion systems to build fully electric, light duty trucks, which included their own
  electric drive train and unique battery packs. In February 2014 we acquired an additional 1.5% of the company. On January 6, 2014,
  we issued 1,292,270 shares to Burton Neil and Dale Nyhus for an obligation of $173,060 related to the acquisition. The value of
  the issued shares on the day of issuance was $206,763. For the period ending September 30, 2014, we impaired the value of the investment
  in VMC by 100%.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  
  <!-- Field: Page; Sequence: 21 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>5. ACCOUNTS RECEIVABLE</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Accounts receivable consists of the following: as of September 30,
  2014 and December&nbsp;31, 2013:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 9pt Times New Roman, Times, Serif">
  <tr>
      <td style="width: 65%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 16%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 16%">&nbsp;</td></tr>
  <tr style="vertical-align: bottom">
      <td style="font-size: 8.5pt; font-weight: bold"><font style="font-size: 8.5pt"><b>Accounts Receivables</b></font></td>
      <td colspan="2" style="border-bottom: black 1pt solid">
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></P>
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2014</b></P></td>
      <td style="font-size: 8.5pt">&nbsp;</td>
      <td colspan="2" style="border-bottom: black 1pt solid">
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31.</b></P>
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2013 </b></P></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td><font style="font-size: 9pt">Trade receivables</font></td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">800</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">0</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td><font style="font-size: 9pt">Grant monies receivable</font></td>
      <td style="border-bottom: black 1pt solid">&nbsp;</td>
      <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 9pt">-</font></td>
      <td>&nbsp;</td>
      <td style="border-bottom: black 1pt solid">&nbsp;</td>
      <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 9pt">0</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">800</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">0</font></td></tr>
  </table>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Due to the liquidation of the U.K. Companies, accounts receivable
  for the comparative period for our U.K. Companies have been reclassified as assets under discontinuing operations in our balance
  sheet presentation. Without the reclassification for the comparative period December 31, 2013, trade receivables were $123,254
  and grant monies receivable was $31,024, both of which were receivables for the U.K. Companies.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>6. INVENTORIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Inventories consist of raw materials and work in progress. These
  pertain to the Bus production in the Newport Coachworks facility. The Company&rsquo;s inventories are valued at cost, as determined
  by the first-in, first out (FIFO) method; in aggregate such valuations are not in excess of market and consisted of the following
  as of September 30, 2014 and December 31, 2013 (reclassified).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 9pt Times New Roman, Times, Serif">
  <tr>
      <td style="width: 62%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 18%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 2%">&nbsp;</td>
      <td style="width: 16%">&nbsp;</td></tr>
  <tr style="vertical-align: bottom">
      <td style="font-size: 10pt">&nbsp;</td>
      <td colspan="2" style="border-bottom: black 1pt solid">
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></P>
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2014</b></P></td>
      <td style="font-size: 8.5pt">&nbsp;</td>
      <td colspan="2" style="border-bottom: black 1pt solid">
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></P>
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2013 </b></P></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td><font style="font-size: 9pt">Raw materials</font></td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">104,882</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">31,922</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td><font style="font-size: 9pt">Goods in transit</font></td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">-</font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td style="text-align: right">&nbsp;</td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td><font style="font-size: 9pt">Work in progress</font></td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">494,775</font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">145,424</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td><font style="font-size: 9pt">Finished Goods</font></td>
      <td style="border-bottom: black 1pt solid">&nbsp;</td>
      <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 9pt">-</font></td>
      <td>&nbsp;</td>
      <td style="border-bottom: black 1pt solid">&nbsp;</td>
      <td style="border-bottom: black 1pt solid; text-align: right">&nbsp;</td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">599,657</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">177,346</font></td></tr>
  </table>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Due to the liquidation of the U.K. Companies, inventory for the
  comparative period for our U.K. Companies has been reclassified as assets under discontinuing operations in our balance sheet presentation.
  Without the reclassification for the comparative period December 31, 2013, the inventory total would have been $412,312, of which
  $234,966 was inventory for the U.K. Companies.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>7. PROPERTY AND EQUIPMENT</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Property and equipment consists of the following: as of September
  30, 2014 and December&nbsp;31, 2013:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 9pt Times New Roman, Times, Serif">
  <tr>
      <td style="width: 70%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 14%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 13%">&nbsp;</td></tr>
  <tr style="vertical-align: bottom">
      <td style="font-size: 10pt">&nbsp;</td>
      <td colspan="2" style="border-bottom: black 1pt solid">
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></P>
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2014</b></P></td>
      <td style="font-size: 8.5pt">&nbsp;</td>
      <td colspan="2" style="border-bottom: black 1pt solid">
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></P>
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2013 </b></P></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td><font style="font-size: 9pt">Leasehold improvements</font></td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">4,000&nbsp;</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right">&nbsp;</td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td><font style="font-size: 9pt">Furniture and fixtures</font></td>
      <td>&nbsp;</td>
      <td style="text-align: right">&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td style="text-align: right">&nbsp;</td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td><font style="font-size: 9pt">Equipment</font></td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">492,475&nbsp;</font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">492,475</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td><font style="font-size: 9pt">Computer hardware and software</font></td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">6,347&nbsp;</font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">6,347</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td><font style="font-size: 9pt">Vehicles</font></td>
      <td style="border-bottom: black 1pt solid">&nbsp;</td>
      <td style="border-bottom: black 1pt solid">&nbsp;</td>
      <td>&nbsp;</td>
      <td style="border-bottom: black 1pt solid">&nbsp;</td>
      <td style="border-bottom: black 1pt solid; text-align: right">&nbsp;</td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">502,822&nbsp;</font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td style="text-align: right"><font style="font-size: 9pt">498,822&nbsp;</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td><font style="font-size: 9pt">Less accumulated depreciation</font></td>
      <td style="border-bottom: black 1pt solid">&nbsp;</td>
      <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 9pt">(130,603)</font></td>
      <td>&nbsp;</td>
      <td style="border-bottom: black 1pt solid">&nbsp;</td>
      <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 9pt">(43,534)</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td>&nbsp;</td>
      <td style="border-bottom: black 2.25pt double"><font style="font-size: 9pt">$</font></td>
      <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 9pt">372,219&nbsp;</font></td>
      <td>&nbsp;</td>
      <td style="border-bottom: black 2.25pt double"><font style="font-size: 9pt">$</font></td>
      <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 9pt">455,287&nbsp;</font></td></tr>
  </table>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our property and equipment as of September 30, 2014 are
  located in California. As of September 30, 2014 and December 31, 2013 (reclassified), depreciation expense was $87,069 and
  $19,705 respectively. Due to the liquidation of the U.K. Companies, our U.K. Companies&rsquo; property and equipment for the
  comparative period, which totaled $143,118 (net of accumulated depreciation) has been reclassified as assets under
  discontinuing operations in our balance sheet presentation.</P>
  
  
  <!-- Field: Page; Sequence: 22 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>8. GOODWILL &amp; INTANGIBLE ASSETS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Intangible assets consist of the following and were mainly related
  to the LEC and Going Green acquisitions:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></P> <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2014</b></P></TD><TD STYLE="font-size: 8.5pt; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></P> <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2013</b></P></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 56%; text-align: left">Goodwill on purchase of Going Green</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">769,890</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">769,890</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Go License</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Crash test homologation costs</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">228,912</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">228,912</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Liberty acquired technology</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">619,462</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">619,462</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Assembled workforce</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">689,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">689,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Trade name and website</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Non-compete agreement</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,500,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,500,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,352,264</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,352,264</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Less amortization and impairment</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(4,352,264</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(4,352,264</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Amortization expense was $0 for the nine
  months ended September 30, 2014 and the year ended December 31, 2013. The Company impaired the remaining basis in the intangibles
  during the year ended December 31, 2012 as management revised its sales forecast for the product which impaired the goodwill as
  of December 31, 2012. There was no impairment of goodwill for the nine months ended September 30, 2013.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>9. DEFERRED REVENUE</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Deferred revenue consists of the following: as of September 30,
  2014 and December 31, 2013:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 9pt Times New Roman, Times, Serif">
  <tr>
      <td style="width: 65%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 16%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 16%">&nbsp;</td></tr>
  <tr style="vertical-align: bottom">
      <td style="font-size: 8.5pt; font-weight: bold"><font style="font-size: 8.5pt"><b><i>Deferred Revenues</i></b></font></td>
      <td colspan="2" style="border-bottom: black 1pt solid">
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></P>
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2014</b></P></td>
      <td style="font-size: 8.5pt">&nbsp;</td>
      <td colspan="2" style="border-bottom: black 1pt solid">
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31.</b></P>
          <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2013 </b></P></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td><font style="font-size: 9pt">Deferred Grant Income</font></td>
      <td><font style="font-size: 9pt">$</font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">-</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <td><font style="font-size: 9pt">Deferred membership fees</font></td>
      <td style="border-bottom: black 1pt solid">&nbsp;</td>
      <td style="border-bottom: black 1pt solid">&nbsp;</td>
      <td>&nbsp;</td>
      <td style="border-bottom: black 1pt solid">&nbsp;</td>
      <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 9pt">-</font></td></tr>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">$</font></td>
      <td style="text-align: right"><font style="font-size: 9pt">-</font></td></tr>
  </table>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As all of our deferred revenue was derived from our U.K. Companies&rsquo;
  operations for both periods, all of our deferred revenue for the period ending December 31, 2013 has been reclassified under discontinued
  operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>10. FUNDS RECEIVED NOT CONVERTED INTO EQUITY (NET OF DISCOUNT)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We received advances during the year ended December 31, 2013 in
  the amount of $215,000. These advances were made directly from the shareholders. The Company issued common shares during the first
  six months of 2014 to settle these advances.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>11. SUMS DUE TO GLOBAL MARKET ADVISORS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On July 19, 2010, we entered into an Advisory Agreement (the &ldquo;Advisory
  Agreement&rsquo;) with Global Market Advisors, Inc., a Nevada corporation (&ldquo;GMAI&rdquo;). Under the Advisory Agreement, GMAI
  was retained by us to assist with a variety of services, including, but not limited to, assisting us with our filings as a public
  company, making the public aware of us and our business, and provide general advice to our management in order to execute our business
  plan and strategy. The agreement was terminated with effect on July 31, 2013.&nbsp;In exchange for the services rendered, we agreed
  to compensate GMAI in the amount of $170,889. This amount remained outstanding as of December 31, 2013 and as of September 30,
  2014.</P>
  
  
  <!-- Field: Page; Sequence: 23 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>12. SUMS DUE TO GLOBAL TRADE FINANCE</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On January 1, 2012 the Company made and entered into a credit facility
  with Global Trade Finance (&ldquo;GTF&rdquo;) to provide credit up to $250,000. The Company had drawn down $79,000 of the facility
  through the second quarter of 2012. The effective rate of interest is 8% on the facility, and the facility was to be secured by
  5,000,000 shares of Green Auto common stock, and the advances made to the Company under the credit facility were not reduced to
  Convertible Notes. The facility was to be due January 1, 2013, or up to twenty four months if demand for repayment is not made,
  however, effective September 30, 2012, the $79,000 was converted into 1,500,000 shares of the Company&rsquo;s common stock. The
  Company recorded $4,000 gain on settlement of debt. The Company also borrowed another $25,000 on this facility that it still owes
  under the same terms listed above as of September 30, 2014 and December 31, 2013.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>13. NOTES PAYABLE, NET OF DISCOUNTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As a result of our inability to file our Form 10-Q for the period
  ended September 30, 2014 within the time period required under the Securities Exchange Act of 1934, as amended, we have defaulted
  on certain covenants under various loan documents with our note holders regarding timely filings with the SEC. Additionally, we
  no longer have sufficient authorized shares for convertible note holders to convert their notes. We currently are in discussions
  to revise the note agreements, including waivers of default remedies. Because we believe we will achieve waivers of the default
  remedies, the values stated for the convertible notes do not include remuneration for default remedies.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <!-- Field: Page; Sequence: 24 -->
      <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 8.5pt; font-weight: bold">Notes Payable</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">September 30,</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">December 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 63%; text-align: left">Blue Citi - Convertible Note Payable, 0% interest, convertible at 40% discount to market price, unsecured</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">277,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">R Knight &pound;38,500 Note Payable, Nil Interest, when funds permit, unsecured</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">63,487</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">P Beitl &pound;109,576 Note Payable, Nil Interest, when funds permit, unsecured</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">180,691</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">David Voss Note Payable, 15% Interest, unsecured, convertible at fixed 00.5 cents per share</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Black Mountain - Convertible Note Payable, 10% interest, convertible at 35% discount to market price, unsecured</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Union Capital Note Payable, 8% Interest, unsecured, convertible at 42% discount to market price after 180 days</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">N Jones &pound;10,053 Note Payable, Nil Interest, unsecured</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,577</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">I Hobday &ndash; Note payable, Nil interest, unsecured</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,419</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,813</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">P Lilley &pound;700 Note Payable, Nil Interest, unsecured</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,191</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,154</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">L G Capital Note payable, 8% Interest, unsecured, convertible at 50% discount to market price after 180 days</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Auctus Note Payable, 8% Interest, unsecured, convertible at 42% discount to market price after 180 days</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">JMJ Financial Note Payable, interest 12% after 90 days, unsecured, convertible at 40% discount to market price</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">142,566</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">82,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Louis Klein Note Payable, 15% Interest, unsecured, convertible at fixed 10.5 cents per share</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Linda Singer Note Payable, 15% Interest, unsecured, convertible at fixed 10.5 cents per share</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">David Hopkins Note Payable, 15% Interest, unsecured , a conversion price of 50% of close price on date of notification</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Gel Properties Note Payable, 6% Interest, unsecured, convertible at 40% discount to market price</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Redwood Fund II Note Payable ,10% Interest, unsecured, convertible at 50% discount to market price</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Redwood Management LLC Note Payable, Nil Interest, unsecured, convertible at 50% discount to market price</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">336,376</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Bizloan Note payable, 36% Interest, secured</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,802</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">219,691</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Typenex Note Payable, 8% Interest, unsecured, convertible at 60% discount to market price after 180 days</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">142,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">WEAM/WFC payable, 0% interest convertible at 20% discount to market price after 180 days</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Auctus Note Payable, 8% Interest, unsecured, convertible at 42% discount to market price after 180 days</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">56,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Blue Citi. 8% Interest, unsecured, convertible at 38.5% discount to market price after 180 days</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">LG Capital, 8% Interest, unsecured, convertible at 35% discount to market price after 180 days</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">94,050</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Union Capital, 8% Interest, unsecured, convertible at 50% discount to market price after 180 days</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Accrued interest</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,080</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,350,778</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,323,119</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Debt Discount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(300,153</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(273,777</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,050,625</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,049,342</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Current Portion</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,050,625</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">845,396</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Long Term</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">203,946</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,050,625</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,049,342</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <!-- Field: Page; Sequence: 25 -->
      <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>13. NOTES PAYABLE, NET OF DISCOUNTS (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In connection with the Black Mountain convertible notes issued on
  February 13, 2014, the Company issued a five year warrant to the note holder to purchase an additional 1,200,000 common shares
  at an exercise price of $0.15. As of September 30, 2014, the adjusted number of issuable shares equaled 69,230,769 shares and the
  strike price was $0.0026. Using the Black-Scholes model and the following inputs: $0.006 market price, 1 year estimated term, 0.13%
  risk free rate and expected volatility of 178%, the warrant&rsquo;s value was $ 318,318. The warrant has anti-dilution provisions,
  including adjustable provisions for the exercise price. Additionally, if the warrant is exercised on a cashless basis, the market
  price would reset to $0.0523, which would negatively impact the number of shares to be issued. We are currently negotiating a settlement
  of the note with Black Mountain, which would include eliminating this warrant.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In connection with the Blue Citi convertible notes issued on
  March 21, 2014, the Company issued a three year warrant to the note holder to purchase an additional 15,218,579 common shares
  at an exercise price of $0.0183. The warrant has anti-dilution provisions, including adjustable provisions for the exercise
  price and the number of shares. As of September 30, 2014, the adjusted number of issuable shares equaled 107,115,385 shares
  and the strike price was $0.0026. Using the Black-Scholes model and the following inputs: $0.006 market price, 1 year
  estimated term, 0.13% risk free rate and expected volatility of 178%, the warrant&rsquo;s value was $492,508.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In connection with a funding transaction between the Company and
  Typenex Co-Investment, LLC, in June 2014 the Company issued a $665,000 secured convertible promissory note to Typenex payable 17
  months after the issuance date and bearing interest at the rate of 10% per annum. The loan will be funded in six installments of
  which the first installment was for $142,500 and the remainders are for $110,000 each, except the last which is for $82,500. The
  Typenex transaction had an original issue discount of $60,000 and transaction expenses of $5,000. As the lender, Typenex is secured
  by a first priority security interest on the assets of the Company. The Typenex Note is convertible into shares of the Company&rsquo;s
  common stock beginning on the date which is six months after each respective installment of the loan is received by the Company.
  The conversion formula is the amount of the loan being converted divided by the conversion price, which is 60% of the average of
  the three lowest Closing Bid Prices in the proceeding twenty trading days. In connection with the Typenex transaction, the Company
  issued a five year warrant to Typenex to purchase common stock that includes anti-dilution provisions. The number of shares issuable
  under the warrant equal $332,500 divided by the greater of the market price per share at the issue date of the warrant ($0.0205)
  or the average trading price per share calculated on the two days prior to the date of notice of conversion. The purchase price
  per share is determined by using the lower of the conversion price and the market price. As of September 30, 2014, the adjusted
  number of issuable shares equaled 127,884,615 and the strike price was $0.0026. Using the Black-Scholes model and the following
  inputs: $0.0026 market price, 1 year estimated term, 0.13% risk free rate and expected volatility of 178%, the warrant&rsquo;s
  value was $588,004.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>14. STOCK INCENTIVE PLAN</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On May 30, 2011, the Company adopted the 2011 Non-Qualified Stock
  Incentive Plan (the&nbsp;&ldquo;Plan&rdquo;). Under the Plan, participants, including both employees and nonemployees of the Company,
  have the opportunity to acquire common units of the Company. For awards made under the Plan, participants purchase common units
  at the time the award is made at (i) a stated value, or (ii) a percentage that is not less than 50% of the current fair market
  value of the stock. Award agreements with employees have a term of ten years and typically have a graded vesting terms over five
  years. If a participant ceases to be employed with the Company prior to the end of the vesting period, the participant forfeits
  his/her rights to any unvested units at the date of the termination.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the nine month period ending September 20, 2014,
  the Company granted 10,100,000 options and recorded a stock option expense of $523,905. No options were granted during the
  year ended December 31, 2014.</P>
  
  
  <!-- Field: Page; Sequence: 26 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>14. STOCK INCENTIVE PLAN (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The fair value of each option award is estimated on the date of
  grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Because the Black-Scholes
  option valuation model incorporate ranges of assumptions for inputs, those ranges are disclosed. Expected volatilities are based
  on historical volatilities of the Company&rsquo;s stock. The Company uses historical data to estimate option exercise and employee
  termination within the valuation model. The expected term of options granted is derived from estimates and represents the period
  of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the
  option is based on the U.S. Treasury yield curve in effect at the time of grant.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></P> <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2014</b></P></TD><TD STYLE="font-size: 8.5pt; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></P> <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2014</b></P></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 56%; text-align: left">Expected Volatility</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">178</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">170</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Expected dividends</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Expected terms (in years)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Risk-free rate</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.13</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.13</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Forfeiture rate</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">A summary of option activity as of September 30, 2014 and
  December 31, 2013, and changes during the periods then ended is presented below:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Weighted-</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Average</TD><TD STYLE="font-size: 8.5pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 8.5pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Average</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Remaining</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Aggregate</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 8.5pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Exercise</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Contractual</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Intrinsic</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 8.5pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Options</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Price</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Life&nbsp;(Years)</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Value</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 40%">Outstanding at January 1, 2013</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">22,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.34</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">9.44</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">191,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>Granted</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>Exercised</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Forfeited or expired</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt">Outstanding at December 31, 2013</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">22,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.34</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8.44</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">191,500</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt">Exercisable at December 31, 2013</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">18,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.42</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8.42</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Weighted-</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Average</TD><TD STYLE="font-size: 8.5pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 8.5pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Average</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Remaining</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Aggregate</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 8.5pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Exercise</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Contractual</TD><TD STYLE="font-size: 8.5pt; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center">Intrinsic</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 8.5pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Options</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Price</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Life&nbsp;(Years)</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Value</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 40%">Outstanding at January 1, 2014</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">22,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.34</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">8.44</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">112,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>Granted</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.06</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.30</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">523,905</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>Exercised</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Forfeited or expired</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial Unicode MS,sans-serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Arial Unicode MS,sans-serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-family: Arial Unicode MS,sans-serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt">Outstanding at September 30, 2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">32,100,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.30</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8.20</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">635,905</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt">Exercisable at September 30, 2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">29,700,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.24</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8.22</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 27 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>15. STOCKHOLDERS<FONT STYLE="font-family: Arial Unicode MS,sans-serif">&rsquo;</FONT>
  DEFICIT</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Series Y Preferred Stock</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On September 2, 2014, we filed a Certificate
  of Designation with the Nevada Secretary of State in connection with the creation of a class of shares designated by our Board
  of Directors as the &ldquo;Series Y Preferred Shares&rdquo; with the characteristics described below. The purpose of the Series
  Y Preferred Shares is to create additional authorized shares of common stock by permitting the return of issued and outstanding
  shares of common stock held our management and others to the treasury for cancellation and to be available for original issuance.
  In return for the submission of the shares of common stock for cancellation, each participating shareholder shall receive an identical
  number of restricted Series Y Preferred Shares. The total number of issued and outstanding shares of common stock that may be subject
  to this arrangement is forty million (40,000,000) shares of common stock and an equivalent number of Series Y Preferred Shares.
  A total of 35,415,592 shares of common stock have been returned for cancellation and an equivalent number of restricted shares
  of Series Y Preferred Stock have been issued to the participants.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I><U>Series A Convertible Preferred Stock (&ldquo;CPS&rdquo;) and
  Derivative Liability</U></I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On July 23, 2012 and in relation with the Liberty Electric Car Limited
  (&ldquo;LEC&rdquo;) Acquisition (Note 4), the Company issued 300,000 shares of restricted preferred stock to two LEC Directors,
  Darren West and Ian Hobday, as a covenant not to compete. These preferred shares were valued at $5.00 per share and were recorded
  as part of the purchase price.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about September 29, 2012, the Company issued an additional
  30,000 CPS to FMS to settle $150,000 of advances owed to FMS (see Note 4) at a conversion rate of $5.00 per CPS.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about December 26, 2012, the Company issued an additional
  53,680 CPS to FMS for cash at a price of $5.00 per CPS.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about December 26, 2012, the Company issued an additional
  12,121 CPS to FMS for cash at a price of $8.25 per CPS.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about February 15, 2013, FMS converted 62,500 Series A preferred
  shares into 20,437,331 shares of our common stock.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about March 6, 2013, the Company issued an additional 21,841
  CPS to FMS for cash at a price of $8.25 per CPS in settlement of $180,188 advances from related party.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 26, 2013, the Company issued an additional 95,485
  CPS to FMS for cash, 51,387 at a price of $5 per CPS and 44,098 at a price of $8.25 per CPS in settlement of $620,743 advances
  from related party.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 29, 2013, 42,152 Series A Preferred Shares were
  converted into 16,156,335 shares of our common stock.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about November 27, 2013 the Company issued an additional 15,891
  CPS to FMS for cash, 2,800 at a price of $5 per CPS and 13,091 at a price of $8.25 per CPS in settlement of $122,001 advances from
  related party.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On January 7, 2014 the Company issued 27,000 CPS to two investors
  for settlement of liability, these shares were valued at $210,000.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the period from January 9, 2014 to March 31, 2014, 38,665
  shares of CPS were converted into 19,386,464 common shares.</P>
  
  
  <!-- Field: Page; Sequence: 28 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>15. STOCKHOLDERS<FONT STYLE="font-family: Arial Unicode MS,sans-serif">&rsquo;</FONT>
  DEFICIT (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about April 11, 2014 a holder of Series A Preferred shares
  of the Company converted 125,000 Series A Preferred Stock into 66,875,000 restricted shares of the Company&rsquo;s common stock.
  The shares issued for the Series A Preferred stock represented 11.05% of the Company&rsquo;s shares issued and outstanding as of
  April 11, 2014.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about May 28, 2014 the Company converted 5,000 Series A Preferred
  Stock into 2,289,220 shares of its common stock.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I><U>Conversion Formula</U></I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The CPS is convertible into Company&rsquo;s common stock in accordance
  with the following formula:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Number of common shares to be issued upon conversion of CPS =</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Number of common stock outstanding on date of conversion x 0.000001
  x Number of preferred stock being converted.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Due to there being no explicit limit to the number of shares to
  be delivered upon settlement of the above conversion option embedded in the CPS, the conversion feature is classified as derivative
  liabilities and recorded at fair value. At the time of this filing, the Company does not have sufficient issuable common shares
  remaining from its authorized common shares for any of the CPS holders to convert into common shares.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Pursuant to ASC 815, &ldquo;Derivatives and Hedging,&rdquo; the
  Company initially recognized the fair value of the embedded conversion feature of the CPS on date of issuance and was charged to
  operations. On September 30, 2014, the Company recorded a mark-to-market adjustment based on the fair value of the derivative liability
  on that date which resulted in a gain of $57,095,577. The fair value of the derivative liability was determined using the Black
  Scholes option pricing model with a quoted market price of $0.006, a conversion price of $0.0026, expected volatility of 178%,
  no expected dividends, an expected term of one year and a risk-free interest rate of 0.13%. As of September 30, 2014, the number
  of common shares that could be potentially issued to settle the conversion of the preferred stock is 372,921,913 common shares.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The following table sets forth by level with the fair value hierarchy
  the Company&rsquo;s financial assets and liabilities measured at fair value on September 30, 2014.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Level 1</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Level 2</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Level 3</TD><TD STYLE="font-size: 8.5pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8.5pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>Assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="width: 40%">None</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>Liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Derivative Financial instruments</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12,814,383</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12,814,383</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The following table summarizes the derivative liabilities included
  in the condensed consolidated balance sheet at September 30, 2014:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 70%; padding-bottom: 1pt">Balance at January 1, 2014</TD><TD STYLE="width: 10%; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 18%; border-bottom: Black 1pt solid; text-align: right">71,752,773</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Derivative liability related to new issuance and conversion, net</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,842,812</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Change in Value of Historic Derivatives</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(57,095,577</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 2.5pt">Balance at September 30, 2014 (unaudited)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">12,814,383</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 29 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I></I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>15. STOCKHOLDERS<FONT STYLE="font-family: Arial Unicode MS,sans-serif">&rsquo;</FONT>
  DEFICIT (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I><U>Common Stock</U></I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about February 15, 2013 FMS converted 62,500 Preferred A shares
  into 20,437,331 shares of our common stock.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about February 15, 2013, we issued 375,000 shares of our common stock to Kodiak
  Capital Group LLC worth $150,000 as part of the Kodiak Funding Agreement. The issuance was exempt from registration pursuant to
  Section 4(2) of the Securities Act of 1933, and the investor was either accredited or sophisticated and familiar with our operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about February 15, 2013, we issued 160,715 shares of our common
  stock to Colin Manners (part of Kodiak Capital Group LLC) worth $64,286 as part of the Kodiak Funding Agreement. The issuance was
  exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, and the investor was either accredited or sophisticated
  and familiar with our operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On March 18, 2013, the Company entered into a funding agreement
  for up to $3 million with Kodiak Capital Group LLC, a Newport Beach-based institutional investor. The Company has agreed to file
  a registration statement with the U.S. Securities &amp; Exchange Commission (&ldquo;SEC&rdquo;) covering the shares that may be
  issued to Kodiak under the terms of the common stock purchase agreement. As a result of the current market price for the Company&rsquo;s
  common stock, the Company intends to withdraw the registration statement filing.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about April 1, 2013, the Company issued 1,712,999 shares to
  the owners of Going Green Limited (a UK company) to acquire 100% of the business. Due to the TRO the shares were not released by
  our transfer agent until June 24, 2013.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about March 22, 2013, the Company issued 1,050,000 shares
  of its common stock to Metro-Electric PLC to secure a 30% investment in the Powabyke brand of Electric Bikes owned by Metro-Electric
  PLC.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about May 9, 2013, the Company issued 1,500,000 shares of
  its common stock each to Gary Spaniak Sr. and Ron Davis to compensate them for Liberty Electric Cars Limited withdrawing from the
  Merger with ELCR in order to be acquired by GAC.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 18, 2013, the Company issued 27,000,000 shares
  of its common stock to Carter Read of which 5,000,000 was in relation to the purchase of Newport Coachworks, Inc. and 22,000,000
  was in relation to Mr. Read securing purchase orders in excess of sixty (60) units.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 29, 2013, the Company converted 42,152 Series A
  Preferred Stock into 16,156,335 shares of its common stock.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about September 20, 2013, the Company issued 1,188,603 shares
  of its common stock. Of those shares, 1,046,618 were issued in connection with convertible debt, 27,939 were issued to a member
  of staff to retain their services, and 114,046 were issued in lieu of rent payments.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about October 16, 2013, the Company issued 500,000 shares
  of its common stock in connection with advisory services provided.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about November 8, 2013, the Company issued 625,461 shares
  of its common stock in connection with advisory services provided.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about November 18, 2013, the Company issued 50,000 shares
  of its common stock in connection with advisory services provided.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about December 11, 2013, the Company issued 7,700,000 shares
  of its common stock in connection with a 3(a)(10) arrangement with Ironridge.</P>
  
  
  <!-- Field: Page; Sequence: 30 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>15. STOCKHOLDERS<FONT STYLE="font-family: Arial Unicode MS,sans-serif">&rsquo;</FONT>
  DEFICIT (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about December 23, 2013, the Company issued 297,429 shares
  of its common stock to Redwood Management in connection with the repayment of convertible debt in the amount of $33,460.73.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about December 31, 2013, the Company issued 238,095 shares
  of its common stock to Redwood Management in connection with the repayment of convertible debt in the amount of $25,000.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the three months ended March 31, 2014, the Company issued
  19,644,299 shares in connection with debt conversion valued at approximately $555,490, mainly related to the LEC debt that was
  assumed by Redwood.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the three months ended March 31, 2014, the Company issued
  32,051 shares for $5,000 in cash to unrelated party.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the three months ended March 31, 2014, the Company issued
  278,133 shares as additional interest and penalties valued at $24,038.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the three months ended March 31, 2014, the Company issued
  78,792,270 shares in connection with liability settlements valued at approximately $4,993,110, which included the Ironridge settlement
  agreement and other liabilities related to consultants and two officers for accrued salary.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the three months ended March 31, 2014, the Company issued
  872,569 shares in connection with services provided to the company by outside consultants valued at approximately $64,000.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about April 2, 2014 the Company issued 1,200,000 shares of
  its common stock to JMJ Financial in connection with the repayment of convertible debt in the amount of $16,920.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about April 2, 2014 the Company issued 4,821,925 shares
  of its common stock to LG Capital in connection with the repayment of convertible debt in the amount of $51,500 plus $2,746
  in accrued interest.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about April 9, 2014 the Company issued 1,631,280 shares of
  its common stock to Auctus Private Equity Fund in connection with the repayment of convertible debt in the amount of $17,750 plus
  $1,646 in accrued interest.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about April 9, 2014 the Company issued 1,600,000 shares of
  its common stock to JMJ Financial in connection with the repayment of convertible debt in the amount of $22,560.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about April 11, 2014 the Company converted 125,000 Series
  A Preferred Stock into 66,875,000 shares of its common stock.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about April 14, 2014, the Company issued 212,500 shares of
  common stock in exchange to investor Maurice Graham Oates at $0.0400 per share for a total of $8,500.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about April 22, 2014 the Company issued 1,585,930 shares of
  its common stock to JMJ Financial in connection with the repayment of convertible debt in the amount of $22,742.23.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about May 23, 2014 the Company issued 540,000 shares of its
  common stock to Gel Properties in connection with the repayment of convertible debt in the amount of $4,472.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about May 28, 2014 the Company converted 5,000 Series A Preferred
  Stock into 2,289,220 shares of its common stock.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about May 30, 2014 the Company issued 900,000 shares of its
  common stock to Gel Properties in connection with the repayment of convertible debt in the amount of $7,453.</P>
  
  
  <!-- Field: Page; Sequence: 31 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>15. STOCKHOLDERS<FONT STYLE="font-family: Arial Unicode MS,sans-serif">&rsquo;</FONT>
  DEFICIT (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 3, 2014 the Company issued 1,578,767 shares of
  its common stock to Gel Properties in connection with the repayment of convertible debt in the amount of $13,075.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 5, 2014 the Company issued 4,262,943 shares of
  its common stock to Redwood Management in connection with the payment of accrued interest in the amount of $29,841.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 6, 2014 the Company issued 3,474,337 shares
  of its common stock to LG Capital Funding in connection with the repayment of convertible debt in the amount of $26,058 plus
  $1,058 in accrued interest.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 10, 2014 the Company issued 2,000,000 shares of
  its common stock to Gel Properties in connection with the repayment of convertible debt in the amount of $21,827.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 12, 2014 the Company issued 1,700,000 shares of
  its common stock to JMJ Financial in connection with the repayment of convertible debt in the amount of $15,810.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 17, 2014 the Company issued 290,753 shares of its
  common stock to Gel Properties in connection with the of repayment convertible debt in the amount of $3,173.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 17, 2014 the Company issued 400,000 shares of its
  common stock to a creditor of former CFO Darren West. In exchange, the accrued salary due Darren West was reduced $17,000.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 18, 2014 the Company issued 3,342,831 shares
  of its common stock to LG Capital Funding in connection with the repayment of convertible debt in the amount of $25,000 plus
  $71 in accrued interest.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 18, 2014 the Company issued 2,200,000 shares of
  its common stock to Gel Properties in connection with the repayment of convertible debt in the amount of $19,361.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 19, 2014 the Company issued 8,571,428 shares of
  its common stock to Redwood Fund III in connection with the repayment of convertible debt in the amount of $60,000.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 24, 2014 the Company issued 2,000,000 shares of
  its common stock for advisory services rendered in 2013 at $0.014 per share.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 27, 2014 the Company issued 7,462,686 shares of
  its common stock to Redwood Fund III in connection with the repayment of convertible debt in the amount of $40,000 plus $10,000
  in accrued interest.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about June 27, 2014 the Company issued 640,736 shares of its
  common stock to Gel Properties in connection with the repayment of convertible debt in the amount of $5,639.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 10, 2014, the Company issued 2,818,337 shares of
  its common stock to JMJ Financial in connection with the repayment of convertible debt in the amount of $24,012.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 14, 2014, the Company issued 8,608,322 shares of
  its common stock to Redwood Fund II, LLC in connection with the repayment of convertible debt in the amount of $60,000.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 15, 2014, the Company issued 2,500,000 shares of
  its common stock to GEL Properties, LLC in connection with the repayment of convertible debt in the amount of $ $20,459.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 21, 2014, the Company issued 7,246,377 shares of
  its common stock to Redwood Fund II, LLC in connection with the repayment of convertible debt in the amount of $50,000, of which
  $10,000 was for accrued interest.</P>
  
  
  <!-- Field: Page; Sequence: 32 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>15. STOCKHOLDERS<FONT STYLE="font-family: Arial Unicode MS,sans-serif">&rsquo;</FONT>
  DEFICIT (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 29, 2014, the Company issued 554,820 shares of
  its common stock to GEL Properties, LLC in connection with the repayment of convertible debt in the amount of $ 4,541.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about September 12, 2014, the Company issued 3,894,867 shares
  of its common stock to Black Mountain Equities in connection with the repayment of convertible debt in the amount of $30,653, of
  which $1,653 was for accrued interest.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about September 23, 2014, the Company issued 912,569 shares
  of its common stock to Union Capital, LLC in connection with the repayment of convertible debt in the amount of $5,201, of which
  $202 was for accrued interest.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about September 26, 2014, the Company issued 384,615 shares
  of its common stock to Blue Citi in connection with the repayment of convertible debt in the amount of $1,000.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about September 30, 2014, the Company issued 5,044,110 shares
  of its common stock to Black Mountain Equities in connection with the repayment of convertible debt in the amount of $20,176, of
  which 1,176 was for accrued interest.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>16. CONTINGENCIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our predecessor, Go Green USA, LLC (&ldquo;Go Green&rdquo;) was
  a party defendant, along with other defendants in a civil action filed in Marshall County, West Virginia by Glen Dale Motor Co.
  and Tomsic Motor Co, Civil Action No. 11-C-104 H. This undefended and previously unknown action resulted in a default judgment
  and related judgment order in the amount of $3,717,615 with interest accruing at 7% per annum from and after February 13, 2012.
  There is no active effort to enforce this action against Go Green and we believe there are numerous defenses to the asserted judgment
  and any such enforcement effort. Moreover, the existence of the liability pre-existed our acquisition of Go Green and its existence
  was not disclosed as a part of the acquisition.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Management has not accrued for this event in the financial statements
  as it is not determinable whether the Company is liable for this judgment. The Company expects that if efforts are made to enforce
  the judgment the expected loss could be from $0 to $3,717,615 not including additional accrued post-judgment interest.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In December 2013 we entered in to an arrangement with Ironridge
  Global Equity IV, Ltd. under Section 3(a)(10) of the Securities Act of 1933 that was approved by a Superior Court Judge in Los
  Angeles, California pursuant to which we agreed to settle approximately $543,000 of trade debt claims purchased by Ironridge in
  exchange for the issuance by the Company of free-trading shares of our common stock under a calculation negotiated between Ironridge
  and the Company (the &ldquo;Stipulation&rdquo;). As of December 31, 2013, we had issued 7,700,000 free trading shares of our common
  stock to cover the Newport Coachworks liabilities assigned to Ironridge under the Stipulation The 3(a)(10) agreement specifies
  a $6m &ldquo;calculation period&rdquo; which determines the final number of shares to be issued to Ironridge in settlement of the
  loan they made to the Company by purchasing Company third party debt.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">After the initial issuance GAC issued a total of 27,000,000 additional
  free trading shares to Ironridge under the Stipulation formula. On or about March 28, 2014, however, Ironridge demanded GAC issue
  an additional 43,000,000 free-trading shares based on Ironridge&rsquo;s calculations under the Stipulation. Ironridge&rsquo;s calculation
  depends on its interpretation of certain clauses in the Stipulation and the allegation that GAC delayed the timely issuance of
  shares to which Ironridge was entitled and has thus increased the base amount of shares owed under the Stipulation. The initial
  Ironridge demand for 43,000,000 shares was increased to 55,000,000 additional shares (the &ldquo;Additional Shares&rdquo;).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On April 16, 2014, Ironridge brought an ex parte proceeding before
  Hon. Deirdre Hill, J. (&ldquo;Judge Hill&rdquo;) to compel GAC to issue the Additional Shares under the Stipulation. GAC filed
  its answering papers in opposition to the Ironridge motion, and the Court held a hearing on May 14, 2014. At the conclusion of
  the hearing, the Court denied Ironridge&rsquo;s request for the issuance of the Additional Shares without prejudice. Since the
  date of the May 14 hearing Ironridge has not filed any other court papers, nor has GAC had any further communications from Ironridge.</P>
  
  <!-- Field: Page; Sequence: 33 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>17. SUBSEQUENT EVENTS </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">After the period ending September 30, 2014, we reached our limit
  of available and issuable shares (as calculated by the following formula: total shares authorized minus total shares issued and
  outstanding minus total share reserved for convertible note holders). As a result, we have no further shares to issue as a means
  of raising capital. Further, our Preferred A stockholders cannot convert their preferred shares for common shares and our convertible
  noteholders cannot convert their notes for common shares. As a result, we are in breach of our agreements with the Preferred A
  Shareholders and Convertible Note Holders. Although our Board of Directors has passed a resolution to increase the number of authorized
  common shares to 2,500,000,000 from 900,000,000, the amount of the increase in authorized shares to be requested of the Company&rsquo;s
  shareholders is subject to our ability to negotiate a resolution on the conversion of our Preferred A Stock to common shares and
  the settlement of our outstanding liabilities, including GAC and Newport Coachwork&rsquo;s payables and GAC&rsquo;s outstanding
  convertible notes. If a reasonable resolution is not achieved, the number of common shares needed to fully satisfy all parties
  could exceed 20 billion shares (based on all factors present on or about December 31, 2014). An increase to our authorized issuable
  share ceiling is subject to approval by our shareholders and will not be effective until the filing of an amendment to our Articles
  of Incorporation.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On September 8, 2014, a consultant to the company serving as Controller
  and Senior Vice President, Global Corporate Finance, Donald Murray, submitted a notice of &ldquo;Termination of Agreement with
  Cause&rdquo; effective October 8, 2014. Causes referenced by Mr. Murray included breach of agreement by the Company, failure by
  the Company to pay agreed upon compensation, the Company&rsquo;s insolvency and the Company and CEO&rsquo;s failure to properly
  disclose material information. We have not refuted Mr. Murray&rsquo;s assertions. Penalties that we had previously agreed to in
  our agreement with Mr. Murray if he were to terminate his consulting agreement for cause included full and immediate vesting of
  6,000,000 shares and 2,000,000 options (with an average strike price of $0.05), payment of accrued and unpaid consulting fees,
  which totaled $23,333 as of October 8, 2014, and six months consulting fees equaling $75,000, together totaling $98,333. The cash
  fees, shares and options were to have been issued by us to Mr. Murray on or before October 8, 2014. However, Mr. Murray elected
  to defer receipt of the shares and options until January 2015. As of the date of this filing, only $2,500 of the unpaid, accrued
  and penalty fees has been paid to Mr. Murray, leaving the cash balance due to him by us at $95,833. Likewise, our obligation to
  issue the shares and options as described above remains outstanding as we do not have any available shares from which to issue
  shares owed to Mr. Murray.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Effective October 8, 2014, upon the request of Carter Read, Board
  Director and President of Newport Coachworks, Ian Hobday resigned as our CEO and Company Director. Although Mr. Hobday had previously
  been awarded 150,000 of the Company&rsquo;s Preferred A Shares for his acceptance of a three year non-compete agreement, the agreement
  included a pro rata forfeiture provision if Mr. Hobday did not complete three years of service. As Mr. Hobday had not yet completed
  three years of service at the time of his resignation, he forfeited 50,000 of the Preferred A Shares he had been issued. Additionally,
  since Mr. Hobday worked with at least two companies outside the GAC organization, OEC International Limited and Footloose 4X4 Limited,
  both U.K. companies acquired by Liberty Electric Company, but not consolidated into the GAC group, during his service to us as
  CEO, we are investigating whether these activities breached Mr. Hobday&rsquo;s non-compete agreement, which could mean that Mr.
  Hobday would forfeit all of the Preferred A shares that had previously been issued to him.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Prior to his departure, CEO Ian Hobday appointed Mr. Alan J. Bailey
  as our Chief Financial Officer, effective October 8, 2014.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On October 10, 2014, our Board of Directors appointed Mr. Carter
  Read, President of Newport Coachworks, Inc., our remaining operating subsidiary, to the positions of interim President (our Principal
  Executive Officer) and Secretary of the Company.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In December 2014, Mr. Read re-engaged Mr. Murray as a consultant
  to assist the Company.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 34 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>17. SUBSEQUENT EVENTS (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On May 18, 2015, we announced the appointment of Ben Rainwater as
  the Company's CEO and member of the Board and the appointment of Agnes Cha as Senior Vice President, Corporate Affairs and member
  of the Board. Under the terms of their respective agreements with us, both Mr. Rainwater and Ms. Cha were each issued 150,000 shares
  of our Series A Convertible Preferred Stock, subject to certain forfeiture and voting conditions, and are to receive 5,000,000
  shares of our common stock after the Company increases its authorized common stock sufficient to permit such issuance. Additionally,
  each was to receive $5,000 per week for any month in which Newport Coachworks, Inc. (NCI), the Company&rsquo;s wholly-owned subsidiary,
  produced an average of 3 buses per week in a calendar month and $7,500 per week for any month in which NCI produced an average
  of 4 or more buses per week in any calendar month. However, no compensation was to be paid, owed, earned or accrued for any month
  in which NCI does not average at least 3 buses per week. On or about November 31, 2015, both Mr. Rainwater and Ms. Cha each forfeited
  75,000 shares (collectively 150,000) when NCI failed to achieve an average production of three buses per week by the end of November
  2015. Further, neither has received any cash remuneration (nor accrued remuneration) as of the date of this filing, as neither
  the Company nor NCI have reached the thresholds under which cash remuneration would be awarded. Further, no shares of our common
  stock have been issued to either Mr. Rainwater or Ms. Cha as we have not yet, as of the date of this filing, increased our authorized
  limit for common stock issuance.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about May 15, 2015, our subsidiary, Newport Coachworks, Inc.
  (NCI) ceased production and laid off its workers as it had depleted its working capital and no longer had the means to purchase
  parts nor pay its staff nor workers. As a result, NCI&rsquo;s revenue in the second quarter of 2015 and onwards will be minimal.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 13, 2015, Carter Read resigned his
  positions as our interim President, Secretary and as a member of our Board of Directors. On July 20, 2015, Mr. Read resigned from
  his position with Newport Coachworks.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 21, 2015, we became aware that the landlord of
  Newport Coachworks&rsquo; warehouse and manufacturing facility located on Wilson Street in Riverside, California, had locked our
  personnel out of the facility due to failure by NCI to pay the rent. At the time we were locked out of the facility, certain assets
  of Newport Coachworks remained inside. We also became aware that the facility may have been leased to a different shuttle bus manufacturing
  company, unrelated to us. We believed that at some point prior to Mr. Read&rsquo;s departure, Mr. Read may have arranged for NCI
  to be released from the Wilson Street lease, which involved a lease being issued to a new tenant introduced by Mr. Read. As part
  of this transaction, we believed that assets belonging to NCI may have been surrendered to the landlord, and/or sold or assigned
  to the new tenant to compensate the landlord for amounts owed, and possibly, to release Mr. Read from a personal guarantee he had
  issued when the lease was signed originally. We began negotiating with the landlord of the Wilson Street facility, as well as the
  new tenant, regarding the facility and Newport Coachworks&rsquo; assets. These efforts led to the formation of an Outsourcing Agreement
  with Executive Bus (see below).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 12, 2015, our Board of Directors
  appointed Fred Luke as our President and Secretary. Mr. Luke&rsquo;s appointment to President and Secretary did not include an
  assignment of remuneration. As of the date of this filing, Mr. Luke has received a total of $10,000 in remuneration for his services
  as President.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 12, 2015, our Board of Directors
  appointed Agnes Cha as our Treasurer. Ms. Cha&rsquo;s appointment to Treasurer did not include remuneration. Ms. Cha has not received
  any cash nor equity remuneration (nor accrued remuneration) for this appointment as of the date of this filing.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about August 13, 2015, our Board began a formal investigation
  into the circumstances leading up to the alleged surrender of assets and transfer of the NCI lease of the Wilson Street facility
  by Mr. Read prior to his departure.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 35 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>17. SUBSEQUENT EVENTS (continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On September 30, 2015, we signed an Outsourcing Agreement (Outsourcing
  Agreement) with Executive Bus Builders Inc. (Executive Bus).<FONT STYLE="background-color: white"> Executive Bus is an affiliate
  of Executive Coach Builders Inc. based in Springfield, Missouri (Executive Coach).</FONT> Executive Coach is known as one of the
  of the top SUV limousine manufacturers in the U.S., and is one of the largest limousine builders in the world. The Outsourcing
  Agreement eliminates our remaining existing manufacturing overhead in the production of buses and significantly reduces our related
  general and administrative costs, while still allowing us to participate in the manufacturing of shuttle buses. Additionally, this
  allows us to refocus on our primary goal of manufacturing all-electric powered buses as well as the conversion of other mass transit
  vehicles.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Pursuant to the Outsourcing Agreement, Executive Bus agreed to 1)
  manufacture buses for our clients based in California, and to build customized buses, which are to be converted into all-electric
  vehicles and convert other mass transit vehicles for our clients into all-electric drive vehicles, 2) purchase certain of the tool
  and die equipment, and certain molds located in the Wilson Avenue facility from us for $100,000, 3) to pay us approximately $25,000
  for the first five buses manufactured for the our customers by Executive Bus, and 4) to assume all of the obligations and responsibilities
  as a sub-lessor under NCI&rsquo;s original lease for the duration of the original lease.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We believe that going forward the net revenue to us per bus sale
  through Executive Bus will be approximately the same as the net earnings we had projected to generate once NCI had reached scale
  (without the administrative and operative burden). As of this filing, NCI remains non-operational and does not have any employees.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Mr. Alan J. Bailey, our Chief Financial Officer (CFO), tendered
  his resignation effective November 2, 2015. During his service as our CFO, Mr. Baily did not receive any compensation, nor is any
  compensation owed.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On November 4, 2015, a default arbitration judgement against us
  was awarded to Typenex Co-Investment, LLC, a creditor of the Company in the amount of $679,894 for damages, with 22% interest accruing
  commencing as of October 19, 2015. We intend to challenge this award based on Typenex&rsquo;s failure to properly serve notice;
  and to negotiate a settlement more favorable to us.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  
  <!-- Field: Page; Sequence: 36 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><A NAME="a_003"></A><B>ITEM 2. Management&rsquo;s Discussion and
  Analysis of Financial Condition and Results of Operations</B></P>
  
  <P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Forward-Looking Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">This Quarterly Report on Form 10-Q of Green Automotive Company for
  the period ended September 30, 2014 contains forward-looking statements, principally in this Section and in &ldquo;Business.&rdquo;
  Generally, you can identify these statements because they use words like &ldquo;anticipates,&rdquo; &ldquo;believes,&rdquo; &ldquo;expects,&rdquo;
  &ldquo;future,&rdquo; &ldquo;intends,&rdquo; &ldquo;plans&rdquo; and similar terms. These statements reflect only our current expectations.
  Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee
  their accuracy and actual results may differ materially from those we anticipated due to a number of uncertainties, many of which
  are unforeseen, including, among others, the risks we face as described in this filing. You should not place undue reliance on
  these forward-looking statements which apply only as of the date of this annual report. To the extent that such statements are
  not recitations of historical fact, such statements constitute forward-looking statements that, by definition, involve risks and
  uncertainties. In any forward-looking statement where we express an expectation or belief as to future results or events, such
  expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the
  statement of expectation of belief will be accomplished.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We believe it is important to communicate our expectations to our
  investors. There may be events in the future; however, that we are unable to predict accurately or over which we have no control.
  The risk factors listed in this filing, as well as any cautionary language in this annual report, provide examples of risks, uncertainties
  and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements.
  Factors that could cause actual results or events to differ materially from those anticipated, include, but are not limited to:
  our ability to successfully obtain financing for product acquisition; changes in product strategies; general economic, financial
  and business conditions; changes in and compliance with governmental regulations; changes in various tax laws; and the availability
  of key management and other personnel.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Overview</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We are involved in the development, manufacturing and sale of diesel,
  gas, CNG and electric buses. We plan to move forward with the production of all-electric buses, as well as begin converting other
  mass transit vehicles into electric powered vehicles. We expect this to be the core focus of our business activities going forward.
  We recently introduced a prototype electric bus, which we named the E-Patriot line. The E-Patriot seats 15-23 passengers, depending
  on configuration and is expected to have a hundred mile range in-between charges when it is ready for market.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>History and Development of the Company</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We are a corporation originally organized under the laws of the
  State of Delaware in 1996, but re-incorporated in Nevada effective June 3, 2011. We formerly operated under the name GANAS Corp.
  (&ldquo;GANAS&rdquo;). Prior to November 2009, GANAS&rsquo; objective was to obtain through acquisition and/or merger transactions,
  assets, which could benefit our shareholders. Effective November 4, 2009, GANAS acquired Go Green USA LLC, a Nevada limited liability
  company organized on April 28, 2009 (&ldquo;Go&rdquo;), in a share exchange transaction pursuant to which newly issued shares of
  GANAS common stock were issued in exchange for all of the issued and outstanding membership interests of Go (the &ldquo;Go Merger&rdquo;).
  The Go Merger resulted in GANAS issuing 1,436,202.25 shares of its common stock with par value $0.001 for each 1% membership interest
  in Go, following which GANAS changed its name to Green Automotive Company Corporation. Effective September 30, 2011, we effected
  a Change of Domicile, re-incorporating in Nevada and simplifying our name to Green Automotive Company, among other things (the
  &ldquo;Re-Incorporation&rdquo;).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In August 2009, prior to the Go Merger, Go entered into a Memorandum
  of Understanding with a subsidiary of &nbsp;Zotye Holding Group, a Chinese automotive manufacturer (collectively, &ldquo;Zotye&rdquo;)
  which, on January 29, 2010, was reduced to a definitive Exclusive Agreement of Distribution and Service between the Issuer and
  Zotye (the &ldquo;Zotye Agreement&rdquo;). On July 20, 2010, the Zotye Agreement was amended and restated &ldquo;between the Issuer
  and Yongkang Titan Imp. &amp; Exp. Co., Ltd., a reported subsidiary of Zotye,&rdquo; and then on December 21, 2010, the Zotye Agreement
  was further amended and restated between the Issuer and Zhejiang Titan Imp. &amp; Exp. Co., Ltd., another reported Zotye subsidiary.</P>
  
  <!-- Field: Page; Sequence: 37 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On January 29, 2010, following the execution of the Zotye Agreement
  we changed our primary SIC Code to 5012 for automobiles.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Following the Go Merger, and throughout the 2010 and 2011 fiscal
  years, we devoted all of our resources to the homologation of the all-electric Zotye Sport Utility Vehicle (&ldquo;SUV&rdquo;)
  with the intent to import and distribute the SUV throughout the U.S. pursuant to the Zotye Agreement. However, after taking several
  SUVs through the required tests to comply with the standard safety benchmarks required by the U.S. Department of Transportation
  (&ldquo;DOT&rdquo;) and the U.S. Federal Motor Vehicle Safety Standards (&ldquo;FMVSS&rdquo;), we elected to modify our business
  plan so as to not be dependent upon one supplier, one product and only one segment of the new all-electric automotive industry,
  and instead to be involved in two areas of the industry: the import, testing and distribution of foreign and domestic manufactured
  eco- friendly passenger vehicles (&ldquo;Passenger Vehicles&rdquo;), Municipal Transit Buses, School Buses, Limousines and Airport
  and Hotel Shuttle Vans (collectively, &ldquo;Mass-Transit Vehicles&rdquo;), and the conversion of conventional internal combustion
  engine driven vehicles into all-electric powered vehicles (&ldquo;Conversion Vehicles&rdquo;), with the medium term goal of becoming
  one of the first manufacturers of all-electric Mass-Transit Vehicles and Conversion Vehicles.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As an enticement to enter into the Zotye agreement, we issued Gao
  Xiang, a senior member of the Zotye management team, 5,000,000 of our common stock. Since the Zotye agreement was never finalized,
  we requested the return of these shares from Gao Xiang. Despite our best efforts to procure the return of the issued share certificate,
  Goa Xiang has not relinquished the share certificate. To ensure the shares cannot be traded, we placed an administrative stop on
  the certificate. This stop remains in place as of the date of this filing.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On September 1, 2011, Green Automotive Company entered into a Stock
  Purchase Agreement and Escrow Agreement with Mark E. Crone (&ldquo;Crone&rdquo;) and Bosch Equities, L.P. (&ldquo;Bosch&rdquo;),
  under which we purchased 100% of the outstanding equity of Matter of Time I Co., a Nevada corporation (&ldquo;MOT&rdquo;), and
  extinguished a repayment obligation of MOT totaling $6,000, all in exchange for $30,000.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On February 10, 2012, we entered into a Merger Agreement and Plan
  of Reorganization with Matter of Time I Co., a Nevada corporation (&ldquo;MOT&rdquo;) (the &ldquo;MOT Agreement&rdquo;). The MOT
  Agreement provided that, at the closing of the transaction contemplated by the MOT Agreement, MOT would dissolve into and became
  a part of Green Automotive Company, with Green Automotive Company being the surviving corporation and assuming MOT&rsquo;s status
  as a reporting issuer under the Securities Exchange Act of 1934, as amended. On December 14, 2012 the transactions contemplated
  by the MOT Agreement closed (the &ldquo;Closing&rdquo;). &nbsp;As a result of the Closing, MOT was merged out of existence and
  Green Automotive Company became a reporting issuer under the Securities Exchange Act of 1934, as amended.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On June 28, 2012, we entered into a Stock Exchange Agreement (the
  &ldquo;Liberty Agreement&rdquo;) with Liberty Electric Cars Limited., an England and Wales private company limited (&ldquo;LEC&rdquo;),
  and its wholly-owned subsidiary LEC 2 Limited, an England and Wales private company limited (&ldquo;LEC2&rdquo; and together with
  LEC, the &ldquo;LEC Entities&rdquo;), under which our wholly-owned subsidiary, Liberty Automotive Group, Inc. (formerly GAC EV
  Motors Inc.), a Nevada corporation (&ldquo;LAG&rdquo;) agreed to purchase 100% of the issued and outstanding securities of LEC
  (the &ldquo;LEC Shares&rdquo;), that owns 100% of the issued and outstanding securities of LEC2 (the &ldquo;LEC2 Shares&rdquo;)
  (collectively the &ldquo;LEC Securities&rdquo;) in exchange for the transfer of Thirty Nine Million Seven Hundred Forty Two Thousand
  One Hundred Seventy Eight (39,742,178) shares of our common stock held by LAG to the LEC Shareholders. These shares represented
  approximately 8.19% of our outstanding voting control. We also issued to Mr. West and Mr. Hobday, the executives of LEC, a total
  of 300,000 shares of our Series A Preferred Stock (subject to forfeiture on a pro rata basis over a three year period) in exchange
  for the non-competition provisions in their independent contractor agreements. This transaction closed on July 23, 2012.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 38 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As a result of the Liberty Transaction, we acquired LEC, a company
  that designed and developed electric vehicle drive solutions for use in its own converted vehicles and for sale to original equipment
  manufacturers (OEMs) for incorporation into their production. LEC&rsquo;s engineers contributed to the invention of innovative
  EV drive train technologies that was believed to be employable in a wide variety of vehicle platforms. LEC was also a contributing
  member of a number of advanced research programs for developing next generation electric vehicle (&ldquo;EV&rdquo;) solutions.
  These programs included the &ldquo;Deliver&rdquo; project where LEC collaborated with &ldquo;tier one&rdquo; automotive companies
  to develop a pure electric commercial vehicle, and the &ldquo;Motore&rdquo; project in which LEC collaborated with &ldquo;tier
  one&rdquo; automotive companies and universities to develop a &ldquo;rare earth&rdquo; free electric motor technology. Additionally,
  LEC created after sales support for EVs including the Modec truck and the G-Wiz car, by developing a comprehensive aftermarket
  maintenance program throughout Europe for its customers&rsquo; electric trucks and cars.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Due to its experience in EV technologies and in servicing EVs, LEC
  had an agreement with a large U.S. truck manufacturer for the on-going support of electric vehicles run by its key clients in Europe.
  LEC continued to take care of all warranty support when required by these customers, all of whom run fleets of electric commercial
  vehicles across Europe. This truck manufacturer&rsquo;s customers include major companies such as FedEx, UPS and Veolia, who are
  using the first &ldquo;ground up&rdquo; electric trucks known as the &ldquo;Modec&rdquo; that were launched approximately five
  years ago for the purpose of making pollution free deliveries in urban areas.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Pursuant to the Liberty Agreement, we also issued to GAC Automotive
  Services, Inc., a Nevada corporation and one of our wholly-owned subsidiaries (&ldquo;GAC Auto&rdquo;) Ten Million (10,000,000)
  shares of Series B Convertible Preferred Stock (the &ldquo;Series B Shares&rdquo;). The issuance of the Series B shares to GAC
  Auto was not part of the purchase price of the LEC Entities and was not compensation to the LEC Entities or LEC Shareholders, but
  was reserved for issuance to shareholders of certain entities that LEC and/or LEC2 have been in negotiations with at the time of
  execution of the Liberty Agreement if those entities and/or assets were purchased by us or our subsidiaries. Subsequently, instead
  of issuing the B shares, we agreed to issue 59,000,000 GAC shares to the former shareholders for LEC&rsquo;s acquisitions of OEC
  International Limited (OEC) and Footloose 4x4 Limited (Footloose). However, the 59,000,000 shares were never issued and we have
  never consolidated OEC nor Footloose into our financial statements. LEC and its subsidiaries, excluding Footloose, ceased operations
  on or about August 15, 2014, and went into liquidation under a voluntary liquidation in accordance with Section 98 of the United
  Kingdom&rsquo;s Insolvency Act of 1986. LEC began to wind down Footloose in late 2013. A formal petition to liquidate Footloose
  was presented on July 3, 2014 and a formal Resolution for Voluntary Winding-up Footloose was granted August 27, 2014. Legal representation
  of the Footloose liquidation was facilitated by Everys Solicitors, Taunton, United Kingdom.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">To date, all of the Series B Shares are still held by GAC Auto.
  For reporting purposes, the Series B Preferred Stock is eliminated upon consolidation.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On October 12, 2012, we entered into an Acquisition and Stock Exchange
  Agreement (the &ldquo;NCI Agreement&rdquo;) with Newport Coachworks, Inc., a California corporation (&ldquo;NCI&rdquo;), under
  which we agreed to purchase 100% of the issued and outstanding securities of NCI (the &ldquo;NCI Shares&rdquo;) from Mr. Carter
  Read, NCI&rsquo;s sole shareholder, in exchange for the transfer of Five Million (5,000,000) shares of our common stock due at
  the closing of the transaction (the &ldquo;GAC Closing Shares&rdquo;), and up to an additional Twenty Two Million (22,000,000)
  shares of our common stock (the &ldquo;GAC Additional Shares&rdquo; and together with the GACR Closing Shares, the &ldquo;GAC Shares&rdquo;)
  to vest as follows: &nbsp;upon NCI obtaining bona fide, binding purchase orders, with a cash down payment (or provides a truck
  chassis in lieu of cash deposit), standard in the industry, to NCI from third party purchasers requiring NCI to manufacturer Sixty
  (60) buses with diesel or compressed natural gas engines at NCI&rsquo;s manufacturing facility (each a &ldquo;Qualified Purchase
  Order&rdquo;) within the first twelve (12) months following the payment of one-half of the initial forecasted funding of $500,000.
  This transaction closed on October 12, 2012. On July 18, 2013 following Board approval, we issued to Mr. Read all of the GAC Additional
  Shares as a consequence of receiving orders for 232 buses from Don Brown Bus Sales (&ldquo;Don Brown&rdquo;) to be delivered over
  a 2-year period. The GAC Shares, when issued on or about July 18, 2013, represented approximately 6.8% of our then outstanding
  common stock and based on our share price. At the close of trading on the day of issuance the stock&rsquo;s value was $6,480,000.
  The terms of the Don Brown contract were subsequently revised during the reporting period ending September 30, 2014, with NCI</P>
  
  
  <!-- Field: Page; Sequence: 39 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">regaining the right to sell buses inside a region formerly assigned
  exclusively to Don Brown, and Don Brown being released from its commitment to purchase 232 buses. As of September 30, 2014, Don
  Brown had completed net purchases of approximately 33 buses from NCI.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about October 29, 2012, Liberty Electric Cars (LEC) agreed
  to acquire a 30% interest in Powabyke EV Limited from Metroelectric PLC (Metroelectric) of Stanstead Abbotts, Hertfordshire, United
  Kingdom under a Purchase and Management Agreement. The consideration paid was 1,050,000 restricted ordinary Green Automotive shares
  with an estimated value of &pound;300,000 or $480,870. On or about March 22, 2013, we issued the shares to Metroelectric, with
  a market value of $335,895 on the day of issuance. Subsequently, on or about July 22, 2014, we agreed to sell our interest to Flare
  Capital Limited under a share purchase agreement signed August 21, 2014 for &pound;15,000 ($24,344.50 in U.S. dollars on the day
  funds were received on September 2, 2014).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On January 31, 2013, the Company signed a binding agreement to buy
  U.K.-based electric vehicle distributor Going Green Limited (&ldquo;Going Green&rdquo;) which operated under the brand name &ldquo;GoinGreen.&rdquo;
  Founded in 2002, it sold over 1,400 G-Wiz vehicles, an electric vehicle manufactured in India by the Indo-Reva Electric Car Company.
  The acquisition was completed on or about April 1, 2013 when 1,562,498 shares of GAC common stock were authorized in exchange for
  100% of the issued and outstanding securities of Going Green Limited and 150,501 shares of GAC common stock for issuance to former
  creditors of Going Green. Due to a temporary restraining order in an unrelated litigation in Utah by us against a former stockholder
  the shares were not released by our transfer agent until June 24, 2013. Ian Hobday, our CEO, and Daren West, our former CFO, served
  as directors of Going Green prior to the acquisition.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about December 12, 2013, we entered into an agreement with
  World Energy Asset Management Inc. (WEAM), an oil and gas company that reportedly develops both onshore and offshore oil and gas
  assets, wherein we purchased 1,000,000 WEAM shares. In conjunction with this transaction, we issued a $400,000 convertible note
  to WEAM (the &ldquo;WEAM Note&rdquo;), $200,000 of which was consideration for the purchase of the shares, with the remaining $200,000
  to be lent to us by WEAM at an unstated future date. Management at the time believed that WEAM would be going public shortly and
  that this construct would effectively give GAC substantial increased value as WEAM was expected to trade at a significantly higher
  value. WEAM was also in discussions with us at that time to drill a well on the Blackhawk property, a company with whom we would
  enter into an acquisition agreement the following month (see below), to provide us with revenues from oil production. The Blackhawk
  acquisition did not occur, nor did drilling on the Blackhawk property. In the quarter ending June 30, 2014 we impaired 100% of
  WEAM share&rsquo;s value. However, the impairment was mistakenly recorded as a loss from other income, which was corrected in the
  period ending September 30, 2014. On June 2, 2014, World Financial Capital Holdings, Inc. (WFC) caused the WEAM Note to be assigned
  to WFC. Principals of WFC and WEAM are related. As of the period ending September 30, 2014, the additional $200,000 that was to
  be lent to us has not been received and the $200,000 note to WFC remains outstanding.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about January 9, 2014 we acquired 21.63% of Viridian Motor
  Corporation (VMC), a US-based electric truck manufacturer. VMC was a company devoted to advancing twenty-first century transportation
  technology using alternative fuels and propulsion systems to build fully electric, light duty trucks, which included their own
  electric drive train and unique battery packs. In February 2014, we acquired an additional 1.5% of the company. On January 6, 2014,
  we issued 1,292,270 shares to Burton Neil and Dale Nyhus for an obligation of $173,060 related to the acquisition. The value of
  the issued shares on the day of issuance was $206,763. Other than a recording of the stock issuance, the acquisition was not recorded
  in our books until the period ending September 30, 2014. Additionally, for the period ending September 30, 2014, we impaired the
  value of the investment in VMC by 100%.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On February 17, 2014, we entered into an Acquisition and Stock Exchange
  Agreement (the &ldquo;Blackhawk Agreement&rdquo;) with Blackhawk Manufacturing, Inc., a California corporation (&ldquo;Blackhawk&rdquo;),
  Sanders, Larios, Larios &amp; Luevanos LLC, a California limited liability company (&ldquo;SLLL&rdquo;), Alan Servicios S de R.I.
  de C.V., a Mexican corporation (&ldquo;Servicios&rdquo;), Lalusa Investments, a Mexican corporation (&ldquo;Lalusa&rdquo;), and
  Shelmado Transporte, a Mexican corporation (&ldquo;Shelmado&rdquo;) (Blackhawk, SLLL, Servicos, Lalusa and Shelmado together are
  referred to herein as the &ldquo;BMI Entities&rdquo;), and the individuals identified on the signature page of the Blackhawk Agreement
  as shareholders of the BMI Entities (the &ldquo;BMI Entity Shareholders&rdquo;), under which we agreed to purchase 100% of the</P>
  
  
  <!-- Field: Page; Sequence: 40 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->40<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">issued and outstanding securities of the BMI Entities (the &ldquo;BMI
  Shares&rdquo;), in exchange for that number of shares of our common stock that was to have a fair market value of Six Million Dollars
  ($6,000,000), with the fair market value being the price per share as of February 15, 2014, which was $0.05 cents per share and
  therefore equaled approximately 120,000,000 shares of our common stock (the &ldquo;Purchase Price&rdquo;).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Subsequent to the closing, but prior to the issuance of the Blackhawk
  Shares to the BMI Entity Shareholders, certain of the BMI Entity Shareholders met with our management and presented information
  about Blackhawk&rsquo;s financial condition that was materially different from the financial representations and warranties in
  the Blackhawk Agreement. These related to, among other matters, Blackhawk&rsquo;s operating income for the year ended December
  31, 2013, its projections for calendar year 2014, its secured and unsecured debt and trade payables, and other issues concerning
  its cash flow, environmental concerns and its ability to operate the ongoing business. As a result of these disclosures, on May
  21, 2014 we informed Blackhawk that we rescinded the Blackhawk Agreement and all related transaction documents, effective immediately,
  and all such agreements were terminated. We did not issue and shall not issue the 120 million shares of our common stock for the
  Purchase Price. We have reserved all other rights and remedies we may have in connection with these former transactions.</P>
  
  <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about September 9, 2103, we entered into an acquisition and
  stock exchange agreement to purchase Transhock Distribution Limited (&ldquo;Transhock&rdquo;) and AutoParts Warehouse Limited (&ldquo;AutoParts&rdquo;),
  incorporated in England and Wales, U.K. for cash and stock. Terms of the agreement were modified in December 2013 and again on
  February 25, 2014. Terms include twenty six million (26,000,000) shares of our common stock to be issued to Derek Neale and David
  Peter Davies, each 50% owners of Transhock and AutoParts (the &ldquo;Closing Shares&rdquo;). Neale and Davies are to each receive
  three million five hundred thousand (3,500,000) GAC shares upon the two (2) year anniversary, and another three million five hundred
  thousand (3,500,000) GAC shares each at three (3) years anniversary of the closing, conditionally, if they are still actively engaged
  with the business operations of Transhock and Autoparts (the &ldquo;Earnout Shares&rdquo;). Additionally, Neale and Davies are
  to each be issued options to purchase 500,000 shares of GAC shares at an exercise price equal to the market price on the day the
  transaction is closed (the &ldquo;Closing Options&rdquo;). Cash consideration: &nbsp;Davies and Neale are to receive a Directors
  and Spouse Salary and Dividend package of seven thousand one hundred twenty five pounds sterling (&pound;7,125) each to be paid
  up and until the GAC shares can be freely traded on either NASDAQ or the Dow Jones Indexes whereupon the package will be reviewed
  in the light of business performance and the number of hours the directors will commit to working in the business going forward.
  Both Neale and Davies are to have seats on to the Liberty Electric Company Board of Directors. An additional condition of closing
  is that GAC must meet the requirement to reduce certain Transhock liabilities in relation to (a) a government business expansion
  loan which needs to be paid down in the event of a sale and (b) a lower level of invoice&nbsp;financing available in the event
  the&nbsp;personal guarantees of&nbsp;the two owners are removed. The total amount of cash required is approximately $750,000.&nbsp;In
  the event the acquisition and stock exchange agreement is not closed, Neale and Davies are to receive the 26,000,000 Closing Shares.
  The closing was to take place on April 25, 2014. On or about June 17, 2014, we signed a Deed of Addendum&nbsp;with Neale and Davies
  to extend the agreement until July 31, 2014. On or about July 3, 2014, we sought and gained a verbal commitment to delay the acquisition
  of Transhock and AutoParts, until later in 2014, subject to (a) completion of the disposition of our U.K. subsidiaries, (b) the
  determination of the amount of funding required upon closing, the owners having renegotiated their&nbsp;invoice financing terms,
  and (c) the availability of funds to close the deal. As of the date of this filing, we are unaware of any further material discussions
  or modifications to this transaction.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On July 31, 2014, our Board of Directors passed a resolution to
  increase the number of authorized common shares to two billion five hundred million (2,500,000,000) from nine hundred million (900,000,000).
  The increase is subject to approval by our shareholders and will not be effective until the filing of an amendment to our Articles
  of Incorporation. The amount of the increase in authorized shares to be requested of the Company&rsquo;s shareholders is subject
  to our ability to negotiate, if possible, a favorable resolution on the conversion of Preferred A Stock to common shares and the
  settlement of outstanding liabilities, including GAC and Newport Coachwork&rsquo;s payables and GAC&rsquo;s outstanding convertible
  notes. If a favorable resolution is not achieved, the number of common shares needed to fully satisfy all parties could exceed
  20 billion (based on conditions in effect as of December 31, 2014).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 41 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->41<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about August 15, 2014, the Company&rsquo;s subsidiaries based
  in the United Kingdom, including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC&rsquo;s wholly
  owned subsidiaries, ceased business operations. On or about August 26, 2014, we arranged for the disposition of the assets and
  liabilities of these subsidiaries under the circumstances and terms and conditions described in PART II &ndash; OTHER INFORMATION,
  Item 5, below.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Overview of Luxury Shuttle and Electric Vehicle and Bus Market
  </I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The luxury shuttle bus market represents the top 20% of the overall
  market for shuttle buses. Typical customers include Five Star hotels and resorts; luxury touring companies; limo buses and other
  high end transport providers. The vehicles in this sector range in capacity from 15 through 52 passengers, and can be powered by
  Gas, Diesel, CNG, and as a recent development, by both electric and hydrogen fuel cells. The buses are constructed on a variety
  of major OEM chassis (including but not limited to Ford, Freightliner, GM, Mercedes and Navistar). Sales opportunities for these
  bus types exist not only in America, but also in Canada and a number of export markets, including South America, Caribbean, Middle
  East and South Africa). Typically the buses feature a high number of operator specified options and additions, ranging from large
  screen TVs to bars, bathrooms and luxury seating. Limo buses, which have begun replacing the more traditional stretched limo, feature
  even more extravagant interiors, including DJ-style music systems, multiple bar installations and bench style seating. Limo buses
  currently account for 10% of the luxury shuttle bus segment but this is growing as traditional stretched limos are replaced.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The market for electric vehicles is expected to grow rapidly, driven
  primarily by government incentives and the fuel costs for traditional vehicles. With major OEMs now launching electric vehicles
  (EV), there is a growing opinion that EVs could eventually replace traditional fossil fuel vehicles. Industry analysts Frost and
  Sullivan&rsquo;s 2010 research stated that approximately 20% of the market for EVs will be satisfied by new entrants rather than
  traditional automotive OEMs. Electric cars in all categories are forecasted to reach sales of 3.8m units annually by 2020 (Pike
  Research 2012), with electric trucks forecasted to reach annual sales of 100,000 units globally (Pike Research 2011) (excluding
  buses and coaches). The development of infrastructure for charging EVs lags the introduction of vehicles, and as such, the main
  initial market will be for EVs that regularly drive the same or similar routes (delivery vehicles, school buses, shuttle buses
  etc.). These vehicles, which return to base regularly, and can therefore be charged easily, represent the vanguard of EV adoption.&nbsp;Adoption
  of EVs in the business-to-business segment is driven by a number of factors: pollution and emission reduction; lower fuel costs;
  legislation; incentives; health issues; driver satisfaction; noise reduction and total cost of ownership benefits.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 42 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Results of Operations for the Three Months Ended September 30,
  2014 and September 30, 2013</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Summary of Results of Operations</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: center"></TD><TD>&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; vertical-align: bottom">For the three months ended</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: center"></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">September 30,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: center"></TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; vertical-align: bottom">(restated)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 56%">Revenues</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">1,662,918</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">644,624</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Costs of goods sold</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,281,116</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">483,938</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Gross profit</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">381,802</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160,686</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Operating expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Depreciation and amortization</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,697</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,384</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-left: 10pt">Impairment of assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">373,060</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">General and administrative</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">341,361</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,166,470</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">753,118</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,197,370</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Operational income/ (loss)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(371,316</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,036,684</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Other income/(expenses)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Change in fair value of derivative liability</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(361,135</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(18,766,197</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Stock issued for settlements</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,237,200</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Gain (loss) on settlement of debt</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Loss on conversion of preferred shares</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16,116</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Other income/(expense)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">660,296</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Interest income/(expense)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">194,581</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(28,929</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">493,742</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,048,442</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Income/(Loss) from continuing operations</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">122,427</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,085,126</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Income/(Loss) from discontinued operations</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(4,347,499</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(325,262</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Earnings before income tax</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(4,225,072</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(25,410,387</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Income taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net income</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(4,225,072</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(25,410,387</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  </TABLE>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 43 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->43<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about August 15, 2014, our United Kingdom based subsidiaries,
  including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC&rsquo;s wholly owned subsidiaries
  (collectively, the U.K. Companies), ceased business operations. As a result, we are reporting the operational results of the U.K.
  Companies under discontinued operations. Operational results under discontinued operations includes a 100% impairment of all U.K.
  Companies&rsquo; assets, a full write down of the value of each company&rsquo;s equity (or deficit), and the net earnings or losses
  incurred by each. We will continue to carry each company&rsquo;s liabilities on our books under liabilities from discontinued operations
  until such time as the voluntary liquidations currently underway are finalized. Additionally, comparative periods, within our financial
  statements and accompanying notes, have been reclassified to show financial data for our former U.K. Companies under discontinued
  operations. Such reclassifications have no impact on our previously reported net losses.</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Operating Loss; Net Income</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our net loss was $4,225,072 for the three months ended September
  30, 2014 compared to a net loss of $25,410,387 for the three months ended September 30, 2013. The net loss for the three months
  ended September 30, 2014 was primarily due to a loss from discontinuing operations of $4,347,499. Our net income from continuing
  operations for the three months ended September 30, 2014 was $122,427. The net loss for the three months ended September 30, 2013
  was the result of $5,036,684 in operating losses from continuing operations (reclassified) and an $18,766,197 non-cash expense
  due to the change in the fair value of derivative liabilities for the period primarily related to our convertible preferred stock,
  as well as our convertible notes and warrants. The reclassification of financial data for our former U.K. Companies as discontinued
  operations had no impact on our previously reported net losses.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Revenue</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our revenue from the three months ended September 30, 2014 was $1,662,918
  compared to $644,624 for the three months ended September 30, 2013 (reclassified). Our revenue was derived from the operations
  of our subsidiary Newport Coachworks, Inc. and no longer includes the results of our subsidiaries Liberty Electric Cars Limited
  (LEC) and LEC&rsquo;s subsidiaries, and Going Green Limited, the results of which are recorded as a loss from discontinued operations
  for the three months ended September 30, 2014. The growth in Newport Coachwork&rsquo;s revenue for the three months ended September
  30, 2014 was due to an increase in bus sales.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Cost of Goods Sold</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our cost of goods sold for the three months ended September 30,
  2014 were $1,281,116 compared to $483,938 for the same period in 2013 (reclassified). The cost of goods sold for the three months
  ended September 30, 2014 and September 30, 2013 corresponds with the revenues generated from the operations of our subsidiary Newport
  Coachworks, Inc.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Depreciation and Amortization</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Expenses related to depreciation and amortization were $38,697 for
  the three months ended September 30, 2014, compared to $18,384 for the three months ended September 30, 2013 (reclassified). The
  increase was attributable to investments in plant and equipment related to the continuing growth of Newport Coachworks.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>General and Administrative</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Expenses related to general and administrative were $331,361 for
  the three months ended September 30, 2014, compared to $5,166,470 for the three months ended September 30, 2013. For the three
  months ended September 30, 2013, $4,739,716 of the expense was for stock based compensation. Expenses related to stock based compensation
  were $0 for the three months ended September 30, 2014.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 44 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Impairment of Assets</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Expenses related to Asset Impairment were $373,060 for the three
  months ended September 30, 2014, compared to $0 for the three months ended September 30, 2013.&nbsp;This expense includes a 100%
  impairment of our $173,060 investment in Viridian Motors and 100% of our $200,000 investment in World Energy Asset Management.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Change in Fair Value of Derivative Liability</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the three months ended September 30, 2014, we had a change
  in fair value of derivative liability of $361,135 compared to a loss of $18,766,197 for the three months ended September 30, 2013,
  with the significant difference primarily related to the change in the fair value of our common stock, and the issuance of additional
  convertible debt and preferred stock during the three months ended September 30, 2014.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Loss on Settlement of Debt</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the three months ended September 30, 2014, we had a loss
  on settlement of debt of $0 compared to a gain of $0 for the three months ended September 30, 2013.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Interest Expense</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the three months ended September 30, 2014, we had interest
  income of $194,581, compared to an interest expense of $28,929 for the three months ended September 30, 2013 (reclassified). The
  main interest expense in 2014 stemmed from the amortization and reversal of debt discount related to convertible debt issued and
  converted.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Loss from Discontinued Operations</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about August 15, 2014, our United Kingdom based subsidiaries,
  including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC&rsquo;s wholly owned subsidiaries,
  (collectively, the U.K. Companies) ceased business operations. As a result, we are reporting the operational results of these subsidiaries
  under discontinued operations for the three month period ending September 30, 2014. During the three months ended September 30,
  2014, we incurred net losses from discontinued operations of $4,347,499. These losses are attributable to a 100% impairment of
  all UK-based subsidiary companies&rsquo; assets, a full write off of the value of each companies&rsquo; equity (or deficit), and
  the net earnings or losses incurred by each. We will continue carrying each company&rsquo;s liabilities on our books until such
  time as the voluntary liquidation currently underway is finalized. For the three months ended September 30, 2013, we reclassified
  the operating results for the U.K. Companies under discontinued operations, which was a net loss of $325,262.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 45 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Results of Operations for the Nine Months Ended September 30,
  2014 and September 30, 2013</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Summary of Results of Operations</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center">For the nine months ended</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center; vertical-align: bottom">(restated)</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 56%">Revenues</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">3,459,607</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">828,888</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Costs of goods sold</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,281,507</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">630,462</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Gross profit</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">178,099</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">198,426</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Operating expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Depreciation and amortization</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87,069</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,705</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-left: 10pt">Impairment of assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">373,060</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">General and administrative</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,815,927</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,927,683</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,276,056</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,947,388</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Operational income/ (loss)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,097,957</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,748,962</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Other income/(expenses)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Change in fair value of derivative liability</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">57,095,577</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,850,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Stock issued for settlements</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,237,200</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Gain (loss) on settlement of debt</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(484,028</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Loss on conversion of preferred shares</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(36,490</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Other income/(expense)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">460,296</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Interest income/(expense)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,642,960</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(194,673</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,428,885</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,381,970</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Income/(Loss) from continuing operations</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,330,929</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,633,008</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Income/(Loss) from discontinued operations</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,843,600</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(962,421</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Earnings before income tax</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">46,487,329</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,670,587</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Income taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net Income</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">49,487,329</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"></TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9,670,587</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 9pt Sans-Serif; margin: 0; color: Red"><B></B></P>
  
  
  <!-- Field: Page; Sequence: 46 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about August 15, 2014, our United Kingdom based subsidiaries,
  including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC&rsquo;s wholly owned subsidiaries
  (collectively, the U.K. Companies), ceased business operations. As a result, we are reporting the operational results of the U.K.
  Companies under discontinued operations. Operational results under discontinued operations includes a 100% impairment of all U.K.
  Companies&rsquo; assets, a full write down of the value of each company&rsquo;s equity (or deficit), and the net earnings or losses
  incurred by each. We will continue to carry each company&rsquo;s liabilities on our books under liabilities from discontinued operations
  until such time as the voluntary liquidations currently underway are finalized. Additionally, comparative periods, within our financial
  statements and accompanying notes, have been reclassified to show financial data for our former U.K. Companies under discontinued
  operations. Such reclassifications had no impact on our previously reported net losses.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Operating Loss; Net Income</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our net income was $46,487,329 for the nine months ended September
  30, 2014 compared to net income of $9,670,587 for the nine months ended September 30, 2013 (reclassified). These net income figures
  were largely a result of non-cash income due to a change in the fair value of derivative liabilities primarily related to our convertible
  preferred stock, as well as our convertible notes and warrants. Our net loss from discontinued operations was $1,843,600 for the
  nine months ended September 30, 2014 and $962,421 for the nine months ended September 30, 2013 (reclassified). The reclassification
  of financial data for our former U.K. Companies as discontinued operations had no impact on our previously reported net losses.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Revenue</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our revenue from the nine months ended September 30, 2014 was $3,459,607compared
  to $828,888 for the nine months ended September 30, 2013 (reclassified). Our revenue was derived from the operations of our subsidiary
  Newport Coachworks, Inc. and no longer includes the results of our subsidiaries Liberty Electric Cars Limited and its subsidiaries,
  and Going Green Limited, which are now recorded under discontinued operations. The growth of Newport Coachwork&rsquo;s revenue
  was due to the increase in bus sales.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Cost of Goods Sold</U>&#9;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our cost of goods sold for the nine months ended September 30, 2014
  were $3,281,507 compared to $630,462 for the same period in 2013 (reclassified). The cost of goods sold for the nine month periods
  was derived from the operations of our subsidiary Newport Coachworks, Inc. and no longer includes the results of our subsidiaries
  LEC and its subsidiaries, and Going Green, which are now recorded under discontinued operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Depreciation and Amortization</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Expenses related to depreciation and amortization were $87,069 for
  the nine months ended September 30, 2014, compared to $19,705 for the nine months ended September 30, 2013 (reclassified). The
  increase was attributable to investments in plant and equipment related to the continuing growth of Newport Coachworks.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>General and Administrative Expenses</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">General and administrative expenses were $6,815,927 for the nine
  months ended September 30, 2014, compared to $6,191,202 for the nine months ended September 30, 2013 (reclassified). The largest
  component of these expenses are stock-based compensation of $5,717,015 for the nine months ended September 30, 2014 and $6,191,202
  for the nine months ended September 30, 2013 (reclassified). The 2014 stock expense is due to the issuance of 78,792,270 common
  shares to settle liabilities and current and accrued consulting expenses, including 4,000,000 shares for $160,000 in accrued fees
  to our former CEO Ian Hobday, 2,500,000 shares for $100,000 in accrued fees due to Carter Read, President of Newport Coachworks,7,000,000
  shares to Big Wave Stock, valued at $280,000 on the issuance date, to settle an outstanding payable of $3,500 for service rendered,
  two issuances totaling 16,000,000 shares to Bill Hiney, valued at $1,860,000 on their issuance dates, to settle two outstanding
  payables totaling $8,000 for services rendered, 13,500,000 shares valued at $1,425,000 on the issuance dates to Surf Financial
  Group to settle outstanding payables of $6,750 for services rendered, 5,000,000 shares, valued at $200,000 on the</P>
  
  
  <!-- Field: Page; Sequence: 47 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">issuance date, to Silverton SA to settle a $2,500 payment on an
  outstanding debt to Roger Knight, an individual, 7,500,000 shares valued at $450,000 on the issuance date to MAFX, Inc. to settle
  an outstanding payable of $3,750 for services rendered, 27,000,000 shares to settle a $545,049 debt with Ironridge, a lender, and
  1,292,270 shares to Burton Neil and Dale Nyhus in connection with GAC&rsquo;s acquisition of approximately 23% of Virdian Motor
  Corporation valued at $173,06.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Impairment of Assets</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Expenses related to asset impairment were $373,060 for the nine
  months ended September 30, 2014, compared to $0 for the nine months ended September 30, 2013.&nbsp;This expense includes a 100%
  impairment of our $173,060 investment in Viridian Motors and 100% impairment of our $200,000 investment in World Energy Asset Management.
  Not included in Impairment of Assets for the three months ended September 30, 2014, is the $679,163 in asset impairments related
  to the cessation of business and liquidation of LEC and its subsidiaries, and Going Green, which are recorded under Loss from Discontinued
  Operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Change in Fair Value of Derivative Liability</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the nine months ended September 30, 2014, we had a change
  in fair value of derivative liability of $57,095,577 compared to $18,850,333 for the nine months ended September 30, 2013, with
  the significant difference primarily related to the change in the fair value of our common stock and the issuance of additional
  convertible debt and preferred stock during the nine months ended September 30, 2014.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Loss on Settlement of Debt</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the nine months ended September 30, 2014, we had loss on
  settlement of debt of $484,028, compared to $0 for the nine months ended September 30, 2013. The loss in 2014 is primarily related
  to a settlement of a note payable by issuing a new note that includes a conversion feature or by issuing stock with a fair value
  higher than the face amount of the note. The conversion feature was accounted for as a derivative liability, which resulted in
  a higher fair value of the note exchanged.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Interest Expense</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the nine months ended September 30, 2014, we had interest
  expense of $1,642,960, compared to $190,673 for the nine months ended September 30, 2013 (reclassified). The main interest expense
  in 2014 stemmed from the amortization and reversal of debt discount related to convertible debt issued and converted.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Loss from Discontinued Operations</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about August 15, 2014, our United Kingdom based subsidiaries,
  including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC&rsquo;s wholly owned subsidiaries,
  ceased business operations. As a result, we are reporting the operational results of these subsidiaries under discontinued operations
  for the nine month period ending September 30, 2014. During the nine months ended September 30, 2014, we incurred net losses from
  discontinued operations of $1,843,600. These losses are attributable to a 100% impairment of all UK-based subsidiary companies&rsquo;
  assets, a full write off of the value of each companies&rsquo; equity (or deficit), and the net earnings or losses incurred by
  each. We will continue carrying each company&rsquo;s liabilities on our books until such time as the voluntary liquidation currently
  underway is finalized. For the nine months ended September 30, 2013 (reclassified), the loss from discontinuing operations was
  $962,421.</P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 48 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->48<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Liquidity and Capital Resources for the Nine Months Ended
  September 30, 2014 and 2013</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><U>Introduction</U></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the nine months ended September 30, 2014 and 2013, because
  of our operating losses, we did not generate positive operating cash flows.&nbsp;Our cash on hand as of September 30, 2014 was
  $44,135 As a result, we have significant short term cash needs. In the past, these needs have been satisfied by generating proceeds
  from the sales of our securities, primarily through the issuance of convertible notes and our Convertible Preferred Series A Stock.
  Such means are not currently available to us, as we have fully committed all remaining authorized, but not yet issued shares, through
  the issuance of irrevocable reserves for some of the issuers of our convertible debt. We currently do not have sufficient capital
  to satisfy our cash needs for operational purposes, but are actively seeking solutions to secure financing, recapitalize our existing
  debt and shareholder structures, raise our authorized share limit, and implement a reverse stock split. All of which, will be subject
  to shareholder approval at a special shareholder meeting, the date of which has not yet been determined.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our cash, current assets, total assets, current liabilities, and
  total liabilities as of September 30, 2014 compared to December 31, 2013 (reclassified), respectively, are as follows:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 1.8pt 0 0; text-align: center"><b>September 30,</b></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 1.8pt 0 0; text-align: center"><b>2014</b></P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 1.8pt 0 0; text-align: center"><b>December 31,</b></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 1.8pt 0 0; text-align: center"><b>2013 (Reclassified)</b></P></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Change</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 46%">Cash</TD><TD STYLE="width: 5%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">44,135</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">2,902</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">41,233</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Total Current Assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">649,730</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,218,463</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(568,733</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Total Assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,021,949</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,886,868</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(864,919</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Total Current Liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,600,010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,345,683</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(57,745,673</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Total Liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">17,622,510</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">75,549,629</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(57,927,119</TD><TD STYLE="text-align: left">)</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Cash Requirements</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We had cash available as of September 30, 2014
  of $44,135 and $2,902 on December 31, 2013 (reclassified). Based on our revenues, earnings, cash on hand and operational needs,
  we will need to continue borrowing from our shareholders and other related parties, and/or raise capital from the sales of our
  securities, to fund operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Sources and Uses of Cash</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Operations</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We had net cash used by operating activities of $957,033 for the
  nine months ended September 30, 2014, as compared to $737,952 for the nine months ended September 30, 2013 (reclassified). For
  the period in 2014, the net cash used in operating activities consisted primarily of our net income of $46,487,329, adjusted by
  the change in fair value of derivative liability of ($57,095,577), share based compensation of $5,717,015, depreciation and amortization
  of $147,069, amortization of debt discount of $1,671,252, and changes in operating assets and liabilities, consisting of: other
  assets of ($5,138), prepaid expenses $545,409, accounts payable and accrued expenses of $1,775,678, accounts receivable of ($800),
  and inventory of ($422,311).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Investments</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We had net cash used in investing activities of $17,000 for the
  nine months ended September 30, 2014 (reclassified), compared to $544,389 for the nine months ended September 30, 2013. In the
  nine months ended September 30, 2013, the net cash used in investing activities related mainly to purchase of property and equipment
  of $587,411, offset by proceeds from disposal of vehicles of $28,126 and proceeds from acquisition of $14,896.</P>
  
  
  <!-- Field: Page; Sequence: 49 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->49<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Financing</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our net cash provided by financing activities for the nine months
  ended September 30, 2014 was $1,003,456 compared to $1,305,617 for the nine months ended September 30, 2013. For the period in
  2014, our financing activities consisted primarily of $1,085,682 from proceeds from notes payable, $14,134 from borrowings on line
  of credit and $109,860 as payments on notes payable. For the period in 2013, proceeds from funds received from FMS amounted to
  $907,839, our financing activities consisted of $467,406 proceeds from notes payable, offset by $69,628 in payments to reduce our
  line of credit</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Off Balance Sheet Arrangements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We have no off balance sheet arrangements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_004"></A><B>ITEM 3. Quantitative and Qualitative Disclosures About Market
  Risk</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As a smaller reporting company, we are not required to provide the
  information required by this Item.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_005"></A>ITEM 4. Controls and Procedures</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>(a)&#9;Evaluation of Disclosure Controls and Procedures</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We maintain disclosure controls and procedures (as defined in Rule
  13a-l5(e) under the Exchange Act) that are designed to ensure that information that would be required to be disclosed in Exchange
  Act reports is recorded, processed, summarized and reported within the time period specified in the SEC&rsquo;s rules and forms,
  and that such information is accumulated and communicated to our management, including to our Chief Executive Officer and Chief
  Financial Officer (our Principal Accounting Officer), as appropriate, to allow timely decisions regarding required disclosure.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As required by Rule 13a-15 under the Exchange Act, our management,
  including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our
  disclosure controls and procedures as of September 30, 2014. Based on that evaluation, our Chief Executive Officer and Chief Financial
  Officer concluded that as of September 30, 2014, and as of the date that the evaluation of the effectiveness of our disclosure
  controls and procedures was completed, our disclosure controls and procedures were not effective to satisfy the objectives for
  which they are intended.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>(b)&#9;Management&rsquo;s Report on Internal Controls over Financial
  Reporting</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our management is responsible for establishing and maintaining effective
  internal control over financial reporting (as defined in Rule 13a-l5(f) of the Securities Exchange Act). Management assessed the
  effectiveness of the Company&rsquo;s internal control over financial reporting as of September 30, 2014. In making this assessment,
  management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on
  that assessment, management believes that, as of September 30, 2014, the Company&rsquo;s internal control over financial reporting
  was ineffective based on the COSO criteria, due to the following material weaknesses listed below.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Insufficient segregation of duties in our finance and accounting
  functions due to limited personnel</I>. We internally performed all aspects of our financial reporting process, including, but
  not limited to, access to the underlying accounting records and systems, the ability to post and record journal entries and responsibility
  for the preparation of the financial statements. Due to the fact these duties were performed by limited personnel (one person),
  a lack of review was created over the financial reporting process that might result in a failure to detect errors in spreadsheets,
  calculations, or assumptions used to compile the financial statements and related disclosures as filed with the SEC.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 50 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->50<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Insufficient corporate governance policies</I>. We have not documented
  our internal controls. We have limited policies and procedures that cover the recording and reporting of financial transactions
  and accounting provisions. As a result, we may be delayed in our ability to calculate certain accounting provisions. While we believe
  these provisions are accounted for correctly in the attached audited financial statements our lack of internal controls could lead
  to a delay in our reporting obligations. We were required to provide written documentation of key internal controls over financial
  reporting beginning with our fiscal year ending December 31, 2009. Management evaluated the impact of our failure to have written
  documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded
  that the control deficiency that resulted represented a material weakness.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Effective controls over the control environment were not maintained</I>.
  Specifically, a formally adopted written code of business conduct and ethics that governs our employees, officers, and directors
  was not in place. Additionally, management has not developed and effectively communicated to our employees its accounting policies
  and procedures. This has resulted in inconsistent practices. Further, our Board of Directors does not currently have a director
  that qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level
  programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material
  weakness.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">These control deficiencies could result in a material misstatement
  to our interim or annual financial statements that possibly would not be prevented or detected.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">When we are financially able, we intend to take appropriate and
  reasonable steps to make the necessary improvements to remediate these deficiencies and we intend to consider the results of our
  remediation efforts and related testing as part of our next assessment of the effectiveness of our internal control over financial
  reporting.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>(c)&#9;Changes in Internal Control over Financial Reporting</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">There were no material changes in our internal controls over financial
  reporting during the three months ended September 30, 2014.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>(d)&#9;Officer&rsquo;s Certifications</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Appearing as an exhibit to this quarterly report on Form 10-Q are
  &ldquo;Certifications&rdquo; of our Chief Executive and Financial Officer. The Certifications are required pursuant to Sections
  302 of the Sarbanes-Oxley Act of 2002 (the &ldquo;Section 302 Certifications&rdquo;). This section of the quarterly report on Form
  10-Q contains information concerning the Controls Evaluation referred to in the Section 302 Certifications. This information should
  be read in conjunction with the Section 302 Certifications for a more complete understanding of the topics presented.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 51 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->51<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_006"></A>PART II &ndash; OTHER INFORMATION</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_007"></A><B>ITEM 1. Legal Proceedings</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">Our predecessor, Go Green USA,
  LLC (&ldquo;Go Green&rdquo;) was a party defendant, along with other defendants in a civil action filed in Marshall County, West
  Virginia by Glen Dale Motor Co. and Tomsic Motor Co, Civil Action No. 11-C-104 H. The basis for this action was a claim by the
  plaintiffs that the defendants breached a dealer agreement entered into by and between the plaintiffs and the defendants by accepting
  a franchise fee and payment for vehicles (totaling approximately $250,000) from the plaintiffs but failing to deliver any of the
  purchased vehicles to the plaintiffs. This undefended and previously unknown action resulted in a default judgment and related
  judgment order in the amount of $3,717,615 with interest accruing at 7% per annum from and after February 13, 2012. There is no
  active effort to enforce this action against Go Green or GAC. We have not accrued for this event in the financial statements. However,
  we believe that if we are properly served and are a proper party to the litigation, that a pay out from the judgement could be
  up to $3,717,615, plus accumulative interest.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">On February 10, 2014, Mr. Ray
  Mariorenzi filed a lawsuit against alleging breach of an oral contract. The lawsuit is entitled Ray Mariorenzi v. Global Market
  Advisors, Inc. and Green Automotive Company Corporation, Superior Court of the State of California for the County of Orange, Central
  Justice Center - Case No. 30-2014-00704187, and in the complaint Mr. Mariorenzi alleges that at meeting in March, 2012, he made
  an oral agreement with an officer and director of Global Market Services, Inc. for the purpose of Mr. Mariorenzi performing consulting
  services to benefit Green Automotive Company and that such services would be provided from March 2012 through end of 2013. In the
  Complaint, Mr. Mariorenzi alleges he performed the services but has not been completely compensated for such services and, as a
  result, claims he is owed $123,500 and 5,750,000 shares of our common stock from the defendants. We were served on or about February
  27, 2014. Pursuant to an arrangement with Plaintiff&rsquo;s counsel, we filed an Answer, with a general denial, on April 16, 2014.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We began to wind down Footloose 4X4 Limited (&ldquo;Footloose&rdquo;),
  based in Newton Abbot, Devon, United Kingdom. Footloose, a subsidiary of Liberty Electric Company Limited (&ldquo;LEC&rdquo;),
  was never a part of the GAC group, thus its financial operations were not consolidated into our financials. A formal petition to
  liquidate Footloose was presented on July 3, 2014 and a formal Resolution for Voluntary Winding-up was granted August 27, 2014.
  Legal representation of the s was facilitated by Everys Solicitors, an insolvency practitioner firm based in the United Kingdom
  (U.K.).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 28, 2014, we contacted Lameys, an insolvency practitioner
  firm based in the United Kingdom (U.K.), for advice on the disposition of the liabilities and assets of our subsidiaries organized
  and operated in the U.K. Lameys was subsequently retained.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about August 15, 2014, the Company&rsquo;s subsidiaries based
  in the U.K., including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC&rsquo;s wholly owned
  subsidiaries, ceased business operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Between August 26 and September 11, 2014, Lameys caused notices
  of a creditors committee meeting to be sent to the following subsidiaries of GAC: Going Green Limited and Liberty Electric Cars
  Limited (LEC), and to LEC&rsquo;s subsidiaries LEC 2 Limited (LEC2), LEC Europe Limited (LEC-EU) and OEC International Limited
  (OEC). OEC is wholly owned by LEC, but was consolidated into the GAC group as the transaction was never completed.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The purpose of the meetings held in late September 2014 was to conduct
  voluntary liquidations of these companies in accordance with Section 98 of the U.K. Insolvency Act of 1986. At the meetings, a
  creditors&rsquo; voluntary liquidation of these companies was agreed upon. Under the procedure, Lameys supervised and conducted
  a sale, or other dispositions, of the assets of the U.K. subsidiaries. Lameys then uses the proceeds from asset dispositions to
  pay outstanding liabilities of the subsidiaries in a manner determined and approved by the creditors. As a result, we expect the
  U.K. subsidiaries to be released of all financial liabilities to their creditors, through proceeds from the liquidated assets or
  elimination as permitted by operation of U.K. law, subject to a final review by U.K.&rsquo;s Insolvency Services anticipated to
  be completed two to three months after each company&rsquo;s files are presented to Insolvency Services by Lameys.</P>
  
  
  <!-- Field: Page; Sequence: 52 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->52<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about September 10, 2014, we entered into a settlement agreement
  with the SEC, wherein we agreed to pay a penalty fine of $50,000 for failing to disclose certain issuances of unregistered securities
  between December 2013 and July 2014, and to disclose the existence of the related financing agreements. As of the date of this
  filing, $40,000 of the penalty payable remains outstanding.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">In the ordinary course of business,
  we are from time to time involved in various pending or threatened legal actions. The litigation process is inherently uncertain
  and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or
  results of operations. However, in the opinion of our management, other than as set forth herein, matters currently pending or
  threatened against us are not expected to have a material adverse effect on our financial position or results of operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_008"></A><B>ITEM 1A. Risk Factors</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As a smaller reporting company, we are not required to provide the
  information required by this Item.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_009"></A>ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the three months ended September 30, 2014, we issued the
  following unregistered securities:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Common Stock</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 10, 2014, we issued 2,818,337 shares of our common
  stock to JMJ Financial in connection with the repayment of convertible debt in the amount of $24,012.23. These shares were issued
  without a restrictive legend under Rule 144 of Section 4(1) of the Securities Act of 1933, as amended, since the debt being converted
  was more than six months old. These issuance of the shares were exempt from registration under Section 4(a)(2) of the Securities
  Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) as transactions by an issuer not involving a public offering.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 14, 2014, we issued 8,608,322 shares of our common
  stock to Redwood Fund II, LLC in connection with the repayment of convertible debt in the amount of $60,000. These shares were
  issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities Act of 1933, as amended, since the debt being
  converted was more than six months old. These issuance of the shares were exempt from registration under Section 4(a)(2) of the
  Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) as transactions by an issuer not involving a public offering.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 15, 2014, we issued 2,500,000 shares of our common
  stock to GEL Properties, LLC in connection with the repayment of convertible debt in the amount of $ $20,459. These shares were
  issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities Act of 1933, as amended, since the debt being
  converted was more than six months old. These issuance of the shares were exempt from registration under Section 4(a)(2) of the
  Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) as transactions by an issuer not involving a public offering.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 21, 2014, we issued 7,246,377 shares of our common
  stock to Redwood Fund II, LLC in connection with the repayment of convertible debt in the amount of $50,000, of which $10,000 was
  for accrued interest. These shares were issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities Act
  of 1933, as amended, since the debt being converted was more than six months old. These issuance of the shares were exempt from
  registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) as transactions
  by an issuer not involving a public offering.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 29, 2014, we issued 554,820 shares of our common
  stock to GEL Properties, LLC in connection with the repayment of convertible debt in the amount of $ 4,541. These shares were issued
  without a restrictive legend under Rule 144 of Section 4(1) of the Securities Act of 1933, as amended, since the debt being converted
  was more than six months old. These issuance of the shares were exempt from registration under Section 4(a)(2) of the Securities
  Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) as transactions by an issuer not involving a public offering.</P>
  
  
  <!-- Field: Page; Sequence: 53 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about September 12, 2014, we issued 3,894,867 shares of our
  common stock to Black Mountain Equities in connection with the repayment of convertible debt in the amount of $30,653, of which
  $1,653 was for accrued interest. These shares were issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities
  Act of 1933, as amended, since the debt being converted was more than six months old. These issuance of the shares were exempt
  from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) as transactions
  by an issuer not involving a public offering.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about September 23, 2014, we issued 912,569 shares of our
  common stock to Union Capital, LLC in connection with the repayment of convertible debt in the amount of $5,201, of which $202
  was for accrued interest. These shares were issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities
  Act of 1933, as amended, since the debt being converted was more than six months old. These issuance of the shares were exempt
  from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) as transactions
  by an issuer not involving a public offering.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">On or about September 26,
  2014, we issued 384,615 shares of our common stock to Blue Citi in connection with the repayment of convertible debt in the amount
  of $1,000. These shares were issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities Act of 1933,
  as amended, since the debt being converted was more than six months old. These issuance of the shares were exempt from registration
  under Section 4(a)(2) of the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) as transactions by an issuer
  not involving a public offering.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about September 30, 2014, we issued 5,044,110 shares of our
  common stock to Black Mountain Equities in connection with the repayment of convertible debt in the amount of $20,176, of which
  1,176 was for accrued interest. These shares were issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities
  Act of 1933, as amended, since the debt being converted was more than six months old. These issuance of the shares were exempt
  from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) as transactions
  by an issuer not involving a public offering.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Preferred Stock</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On September 11, 2014, we issued an aggregate of 35,562,651 shares
  of our Series Y Convertible Preferred Stock to eight different individuals and entities in exchange for the same individuals and
  entities cancelling an aggregate of 35,605,119 shares of our common stock, pursuant to a board resolution on August 21, 2014. Series
  Y Convertible Preferred shares are convertible into common shares of the company&rsquo;s common stock on a one for one basis, at
  such time as the Company&rsquo;s authorization limit is increased and sufficient shares are available. The exchange of the 35,562,651
  common shares into the same number of Series Y Convertible Preferred Stock was executed so that we could increase the number of
  issuable shares available to us, as all of our common shares that were not issued and outstanding at the time the time of the exchange,
  were reserved for convertible note holders.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Series Y Convertible Preferred Shares issued went to certain
  of our officers and directors, family members of one of the directors, and one acquaintance of one of the directors, namely: Ian
  Hobday (4,000,000 shares of Series Y Preferred Stock in exchange for cancelling 4,000,000 shares of our common stock), Hobbers
  Inc. (an entity controlled by Ian Hobday, 6,438,823 shares of Series Y Preferred Stock in exchange for cancelling 6,438,823 shares
  of our common stock),Peter Leeds (3,280,392 shares of Series Y Preferred Stock in exchange for cancelling 3,280,392 shares of our
  common stock, of which 400,000 were issued to Anita Corey at Peter Leeds request; the difference 2,880,392 was issued to Peter
  Leeds), Anita Corey, 63,436 shares of Series Y Preferred Stock in exchange for 63,436 shares of our common stock), Beatrice G.
  Leeds (a relative of Peter Leed&rsquo;s, 200,000 shares of Series Y Preferred Stock in exchange for cancelling 200,000 shares of
  our common stock), Phillip C. Leeds (a relative of Peter Leed&rsquo;s, 290,000 shares of Series Y Preferred Stock in exchange for
  cancelling200,000 shares of our common stock), David Leeds (a relative of Peter Leed&rsquo;s, 290,000 shares of Series Y Preferred
  Stock in exchange for cancelling 290,000 shares of our common stock),and Carter Read (21,000,000 shares of Series Y Preferred Stock
  in exchange for cancelling 21,000,000 shares of our common stock). The shares were restricted in accordance with Rule 144.The issuances
  were exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933 since the investor was either accredited
  or sophisticated and familiar with our operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 54 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->54<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_010"></A>ITEM 3. Defaults Upon Senior Securities</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As a September 30, 2014 and currently, at the time of filing this
  report, we are in default of covenants of our Series A Preferred Shares and covenants of our outstanding convertible notes, both
  of which stipulate that we must maintain sufficient shares for both to convert their securities into common shares under the conversion
  terms specified by their respective agreements. As of September 30, 2014, and as of the date of filing, we have insufficient authorized
  shares from which to satisfy Preferred A stockholders and convertible note holders&rsquo; conversion rights. Other defaults include
  the late filing of our SEC Form 10-Q for the period ending September 30,2014, the late filing of our SEC Form 10-K for the period
  ending December 31, 2014, and the late filing of our SEC Form 10-Q for the periods ending March 31, 2015 and June 30, 2015.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_011"></A><B>ITEM 4. Mine Safety Disclosures</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the period covered by this report there were no events which
  are required to be reported under this Item.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_012"></A>ITEM 5. Other Information</B></P>
  
  <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0"><U>Disposition of Our United Kingdom-based Subsidiaries&rsquo;
  Assets, Liabilities and Operations</U></P>
  
  <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We began to wind down Footloose 4X4 Limited (Footloose), a subsidiary
  of Liberty Electric Company Limited (LEC), based in Newton Abbot, Devon, United Kingdom at the end of 2013. A formal petition to
  liquidate Footloose was presented on July 3, 2014 and a formal Resolution for Voluntary Winding-up was granted August 27, 2014.
  Legal representation of the liquidation was facilitated by Everys Solicitors, an insolvency practitioner firm based in the United
  Kingdom (U.K.). As Footloose was never formalized as part of the GAC group, its financial operations were never consolidated into
  our financials.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about July 28, 2014, we contacted Lameys, an insolvency practitioner
  firm based in the United Kingdom (U.K.), for advice on the disposition of the liabilities and assets of Going Green Limited and
  Liberty Electric Cars Limited (LEC), along with each of LEC&rsquo;s wholly owned subsidiaries, excluding Footloose, each organized
  and operated in the U.K. Lameys was subsequently retained under the terms and conditions described below.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The decision to pursue liquidation for each of these companies was
  based on management&rsquo;s assessment of its U.K. operations and the working capital requirements to maintain these operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On or about August 15, 2014, the Company&rsquo;s subsidiaries based
  in the U.K., including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC&rsquo;s wholly owned
  subsidiaries, ceased business operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On August 21, 2014 Director Nicholas Hewson resigned as a director
  of Green Automotive with his resignation effective that day. Mr. Hewson&rsquo;s resignation was not related to any disagreement
  with us on any matter relating to our operations, policies and practices. Mr. Hewson, who resides in the United Kingdom and is
  retired, informed the board that the geographic separation caused by our decision to liquidate the U.K. businesses and resulting
  shift of focus to U.S. operations &ndash; namely Newport Coachworks, made Mr. Hewson&rsquo;s ability to devote the time required
  to perform his oversight functions as a director more difficult. We accepted Mr. Hewson&rsquo;s resignation and expressed appreciation
  for the services he performed as a director.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Between August 26 and September 11, 2014, Lameys caused notices
  of creditors committee meetings to be sent to the following subsidiaries of GAC: Going Green Limited and Liberty Electric Cars
  Limited (LEC), and to LEC&rsquo;s subsidiaries LEC 2 Limited (LEC2), LEC Europe Limited (LEC-EU) and OEC International Limited
  (OEC). OEC is wholly owned by LEC, but was never included within the GAC group of companies.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 55 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->55<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The purpose of the creditors committee meetings held in late September
  2014 was to conduct voluntary liquidations of these companies in accordance with Section 98 of the U.K. Insolvency Act of 1986.
  At the meetings, a creditors&rsquo; voluntary liquidation of these companies was agreed upon. Under the procedure, Lameys supervised
  and conducted a sale, or other dispositions, of the assets of the U.K. subsidiaries. Lameys will use the proceeds from these asset
  dispositions to pay outstanding liabilities of the subsidiaries in a manner determined and approved by the creditors. As a result,
  we believe the U.K. subsidiaries will be released of all financial liabilities to their creditors, through proceeds from the liquidated
  assets or elimination as permitted by operation of U.K. law, subject to a final review by U.K.&rsquo;s Insolvency Services anticipated
  to be completed two to three months after each company&rsquo;s files are presented to Insolvency Services by Lameys.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Included in the liabilities summarized by Lameys, were payables
  due to former CFO Darren West (deceased) and CEO Ian Hobday in the amounts of &pound;198,106 and &pound;145,949, respectively.
  As their working relationship with us was governed by consulting agreements with Liberty Electric Company, and not GAC, our liability
  to them ended with the voluntary insolvency of LEC, which was initiated by Mr. Hobday. A claimed payable of $260,898&nbsp;due to
  Petra Beitl, as stated in our 10-Q filed for the period ending June 30, 2014, was not listed amongst LEC&rsquo;s creditors by Lameys.
  However, as Ms. Beitl&rsquo;s consulting agreement was with LEC, any outstanding payable to her ended with the voluntary insolvency
  of LEC.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">With creditors&rsquo; approval, on or about August 27, 2014, former
  LEC and Going Green staff members, led by Clive Southwell, a director of the U.K. businesses at the time LEC and Going Green ceased
  operations, along with financial support from former GAC director Nicholas Hewson and our then CEO Ian Hobday, purchased the assets
  of Going Green through a company they organized, Clean Transport and Technology Limited (CTT) for a purchase price of &pound;22,800
  (&pound;19,000 plus &pound;3,280 value added tax (VAT)) and the assets of LEC2 for &pound;7,200 (&pound;6,000 plus &pound;1,200
  VAT) for a total of &pound;30,000. The assets of LEC2 consisted primarily of spare parts and batteries, and the assets of Going
  Green consist primarily of parts, equipment and used vehicles. The sale proceeds were paid to Lameys and the sales were approved
  at the respective creditors&rsquo; committee meetings when they were held. The proceeds are to be distributed to the creditors
  of the respective subsidiaries upon or before final settlement of the liquidation procedures. We were advised by Lameys that the
  likelihood of an objection to this transaction was minimal since the value of the transaction was supported by independent valuation
  of the assets obtained by Lameys prior to accepting the purchase price into escrow.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Ian G. Hobday, our then CEO and a director of LEC, LEC2 and LEC-EU
  at the time these companies ceased operations, made an investment of &pound;5,000 in CTT in the form of a loan to assist CIT in
  the acquisition of the assets. Mr. Hobday&rsquo;s investment comprised 16.67% of the liquidated assets&rsquo; purchase price. Similarly,
  Mr. Nicholas Hewson, a former director of GAC (Mr. Hewson resigned as one of our directors effective August 21, 2014), made an
  equity investment of &pound;5,000 in CTT. Mr. Hewson&rsquo;s investment comprised 16.67% of the liquidated assets&rsquo; purchase
  price. Collectively, the investments by Mr. Hobday and Mr. Hewson comprised 33.33% of the liquidated assets&rsquo; purchase price
  (including Value Added Tax (VAT)). The terms and exact dates of Mr. Hobday and Mr. Hewson&rsquo;s investments were not disclosed
  to us.</P>
  
  <P STYLE="font: 11pt/12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Lameys commenced final documentation and submitted its recommendations
  to the U.K.&rsquo;s &ldquo;Insolvency Services&rdquo; for final review and approval. Insolvency Services then conducted both an
  investigative and administrative review process.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The final disposition of LEC is subject to receiving payment of
  &pound;15,000 (approximately $24,350) from us. The payment amount is for funds received by GAC when we sold LEC&rsquo;s investment
  in Powabyke. The proceeds of that sale should have gone to LEC, but instead we received those funds. Because LEC was in liquidation
  at the time Powabyke was sold, all LEC funds (and all funds owed LEC) were under the control of the liquidator and should have
  been forwarded to LEC. Thus, GAC must return the received proceeds (&pound;15,000) by rendering payment to the liquidator.</P>
  
  <P STYLE="font: 11pt/12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 56 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->56<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0"><U>Series Y Preferred Stock</U></P>
  
  <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On September 2, 2014, we filed a Certificate of Designation with
  the Nevada Secretary of State in connection with the creation of a class of shares designated by our Board of Directors as the
  &ldquo;Series Y Preferred Shares&rdquo; with the characteristics described below. The purpose of the Series Y Preferred Shares
  is to create additional authorized shares of common stock by permitting the return of issued and outstanding shares of common stock
  held our management and others to the treasury for cancellation and to be available for original issuance. In return for the submission
  of the shares of common stock for cancellation, each participating shareholder shall receive an identical number of restricted
  Series Y Preferred Shares. The total number of issued and outstanding shares of common stock that may be subject to this arrangement
  is forty million (40,000,000) shares of common stock and an equivalent number of Series Y Preferred Shares. A total of 35,415,592
  shares of common stock have been returned for cancellation and an equivalent number of restricted shares of Series Y Preferred
  Stock have been issued to the participants.</P>
  
  
  <!-- Field: Page; Sequence: 57 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->57<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 11pt/12pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><A NAME="a_013"></A><B>ITEM 6, Exhibits</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td style="width: 11%"><font style="font-size: 9pt">3.1 (1)</font></td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 88%"><font style="font-size: 9pt">Articles of Incorporation of Green Automotive Company, filed June 3, 2011</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">3.2 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Articles of Merger of Green Automotive Company, filed October 19, 2011</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">3.3 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Articles of Merger between Green Automotive Company and Matter of Time I Co., filed December 13, 2012</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">3.4 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Amended and Restated Bylaws of Green Automotive Company</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.1 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Advisory Agreement by and between Green Automotive Company and Global Market Advisors, Inc. dated July 19, 2010</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.2 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Credit Agreement by and between Green Automotive Company and Global Trade Finance, Inc. dated January 1, 2012</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.3 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Settlement, General Release and Conversion Agreement by and between Green Automotive Company and Global Trade Finance, Inc. dated June 30, 2012</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.4 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Assignment Agreement by an between Green Automotive Company and Investment Finance IFC Ltd. Dated January 27, 2012</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.5 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Merger Agreement and Plan of Reorganization by and between Green Automotive Company and Matter of Time I Co. dated February 10, 2012 and completed December 12, 2012.</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.6 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Stock Exchange Agreement by and between Green Automotive Company and Liberty Electric Cars Ltd. Dated June 28, 2012</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.7 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Amendment No. 1 to Stock Exchange Agreement by and between Green Automotive Company and Liberty Electric Cars Ltd. Dated December 4, 2012</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.8 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Stock Purchase Agreement by and between Green Automotive Company and First Market Services dated June 29, 2012</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.9 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Acquisition and Stock Exchange Agreement by and between Green Automotive Company and Newport Coachworks, Inc. dated October 12, 2012</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.10 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Amended and Restated Independent Contractor Agreement by and between Liberty Electric Cars Ltd. And Ian Hobday dated December 4, 2012</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.11 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Amended and Restated Independent Contractor Agreement by and between Liberty Electric Cars Ltd. And Darren West dated December 4, 2012</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.12 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Employment Agreement by and between Newport Coachworks, Inc. and Carter Read dated October 2012</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.13 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Distribution Agreement by and between Newport Coachworks, Inc. and Don Brown Bus Sales, Inc. dated November 1, 2012</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.14 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Employment Agreement with Mark Aubry dated December 17, 2012</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.15 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Stock Purchase Agreement by and between Green Automotive Company and First Market Services dated November 20, 2012</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.16 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Stock Purchase Agreement by and between Green Automotive Company and Mark E. Crone and Bosch Equities, LP dated September 1, 2011</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.17 (1)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Exchange Agreement by and between Green Automotive Company and Investment Finance Company IFC Limited dated September 30, 2012</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.18 (2)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Investment Agreement with Kodiak Capital Group, LLC dated March 14, 2013</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.19 (2)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Registration Rights Agreement with Kodiak Capital Group, LLC dated March 14, 2013</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.20 (3)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Acquisition and Stock Exchange Agreement by and between Green Automotive Company, Liberty Electric Cars Ltd. and&nbsp;&nbsp;Going Green Limited dated February 28, 2013</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.21 (4)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Securities Purchase Agreement with Auctus Private Equity Fund, LLC, dated August 26, 2013</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.22 (4)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Promissory Note issued to Auctus Private Equity Fund LLC, dated August 26, 2013</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.23 (4)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Securities Purchase Agreement with LG Capital Funding, LLC, dated August 21, 2013</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.24 (4)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Promissory Note issued to LG Capital Funding, LLC, dated August 21, 2013</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">10.25 (5)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Services Agreement by and between Navistar, Inc. and Liberty Electric Cars Ltd. dated May 3, 2011</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.26 (6)</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">Summary of Amendment to D Distribution Agreement by and between Newport Coachworks, Inc. and Don Brown Bus Sales, Inc. dated November 1, 2012</font></td></tr>
  <tr style="vertical-align: top; background-color: #F2F2F2">
      <td><font style="font-size: 9pt">10.27 (7)</font></td>
      <td>&nbsp;</td>
      <td style="text-align: justify"><font style="font-size: 9pt">Acquisition and Stock Exchange Agreement by and between Green Automotive Company, the BMI Entities and the BMI Entity Shareholders dated February 17, 2014</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.28 (7)</font></td>
      <td>&nbsp;</td>
      <td style="text-align: justify"><font style="font-size: 9pt">Amendment No. 1 to the Blackhawk Agreement dated February 20, 2014</font></td></tr>
  <tr style="vertical-align: top; background-color: #F2F2F2">
      <td><font style="font-size: 9pt">10.29 (7)</font></td>
      <td>&nbsp;</td>
      <td style="text-align: justify"><font style="font-size: 9pt">Amendment No. 2 to the Blackhawk Agreement dated March 4, 2014</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.30 (7)</font></td>
      <td>&nbsp;</td>
      <td style="text-align: justify"><font style="font-size: 9pt">Amendment No. 3 to the Blackhawk Agreement dated March 17, 2014</font></td></tr>
  <tr style="vertical-align: top; background-color: #F2F2F2">
      <td><font style="font-size: 9pt">10.31 (7)</font></td>
      <td>&nbsp;</td>
      <td style="text-align: justify"><font style="font-size: 9pt">Amendment No. 4 to the Blackhawk Agreement dated April 14, 2014</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.32 (7)</font></td>
      <td>&nbsp;</td>
      <td style="text-align: justify"><font style="font-size: 9pt">Consulting Agreement with Floyd Sanders dated April 8, 2014</font></td></tr>
  <tr style="vertical-align: top; background-color: #F2F2F2">
      <td><font style="font-size: 9pt">10.33 (7)</font></td>
      <td>&nbsp;</td>
      <td style="text-align: justify"><font style="font-size: 9pt">Consulting Agreement with Sergio Larios dated April 8, 2014</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">10.34 (7)</font></td>
      <td>&nbsp;</td>
      <td style="text-align: justify"><font style="font-size: 9pt">Consulting Agreement with Carlos Larios dated April 8, 2014</font></td></tr>
  <tr style="vertical-align: top; background-color: #F2F2F2">
      <td><font style="font-size: 9pt">10.35 (7)</font></td>
      <td>&nbsp;</td>
      <td style="text-align: justify"><font style="font-size: 9pt">Consulting Agreement with Lin Austin dated April 8, 2014</font></td></tr>
  </table>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 58 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->58<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td style="width: 11%"><font style="font-size: 9pt">21.1* </font></td>
      <td style="width: 1%">&nbsp;</td>
      <td style="width: 88%"><font style="font-size: 9pt">List of Subsidiaries</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">31.1*</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt"><A HREF="ex31_1302certification.htm">Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer</A></font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">31.2*</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt"><A HREF="ex31_2302certification.htm">Rule 13a-14(a)/15d-14(a) Certification of Chief Accounting Officer</A></font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">32.1*</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt"><A HREF="ex32_1906certification.htm">Section 1350 Certification of Chief Executive Officer</A></font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">32.2*</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt"><A HREF="ex32_2906certification.htm">Section 1350 Certification of Chief Accounting Officer</A></font></td></tr>
  <tr style="vertical-align: top">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">101.INS&nbsp;**</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">XBRL Instance Document</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">101.SCH&nbsp;**</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">XBRL Taxonomy Extension Schema Document</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">101.CAL&nbsp;**</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">XBRL Taxonomy Extension Calculation Linkbase Document</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">101.DEF&nbsp;**</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">XBRL Taxonomy Extension Definition Linkbase Document</font></td></tr>
  <tr style="vertical-align: top; background-color: #F3F3F3">
      <td><font style="font-size: 9pt">101.LAB&nbsp;**</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">XBRL Taxonomy Extension Label Linkbase Document</font></td></tr>
  <tr style="vertical-align: top">
      <td><font style="font-size: 9pt">101.PRE&nbsp;**</font></td>
      <td>&nbsp;</td>
      <td><font style="font-size: 9pt">XBRL Taxonomy Extension Presentation Linkbase Document</font></td></tr>
  </table>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 9pt/12pt Times New Roman, Times, Serif; margin: 0">* Filed herewith.</P>
  
  <P STYLE="font: 9pt/12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 9pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: white">**
  XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus
  for purposes of Sections&nbsp;11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section&nbsp;18
  of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.</FONT></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 9pt">(1)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;
  </FONT><FONT STYLE="font-size: 9pt">Incorporated by reference from our Current Report on Form 8-K filed with the Commission on
  December 20, 2012.</FONT></P>
  
  <P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 9pt">(2)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;
  </FONT><FONT STYLE="font-size: 9pt">Incorporated by reference from our Current Report on Form 8-K filed with the Commission on
  March 19, 2013.</FONT></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><FONT STYLE="font-size: 9pt">(3)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;
  </FONT><FONT STYLE="font-size: 9pt">Incorporated by reference from our Current Report on Form 8-K filed with the Commission on
  August 15, 2013.</FONT></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><FONT STYLE="font-size: 9pt">(4)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;
  </FONT><FONT STYLE="font-size: 9pt">Incorporated by reference from our Registration Statement on Form S-1/A filed with the Commission
  on November 12, 2013.</FONT></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><FONT STYLE="font-size: 9pt">(5)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;
  </FONT><FONT STYLE="font-size: 9pt">Incorporated by reference from our Amended Current Report on Form 8-K/A filed with the Commission
  on June 17, 2013.</FONT></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><FONT STYLE="font-size: 9pt">(6)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;
  </FONT><FONT STYLE="font-size: 9pt">Incorporated by reference from our Amended Current Report on Form 8-K/A filed with the Commission
  on November 29, 2013.</FONT></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><FONT STYLE="font-size: 9pt">(7)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;
  </FONT><FONT STYLE="font-size: 9pt">Incorporated by reference from our Current Report on Form 8-K filed with the Commission on
  April 17, 2014.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 59 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->59<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIGNATURES</B></P>
  
  <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</P>
  
  <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
      <td style="font-size: 10pt">&nbsp;</td>
      <td colspan="2">
          <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -35.85pt"><b>Green Automotive Company</b></P>
          <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.15pt; text-indent: -0.15pt"><b>a Nevada corporation</b></P></td></tr>
  <tr style="vertical-align: bottom">
      <td style="width: 58%; font-size: 10pt">&nbsp;</td>
      <td style="width: 6%; font-size: 10pt">&nbsp;</td>
      <td style="width: 36%; font-size: 10pt">&nbsp;</td></tr>
  <tr style="vertical-align: bottom">
      <td style="font-size: 10pt">&nbsp;</td>
      <td style="font-size: 10pt">&nbsp;</td>
      <td style="font-size: 10pt">&nbsp;</td></tr>
  <tr style="vertical-align: bottom">
      <td style="font-size: 10pt"><font style="font-size: 10pt">Dated:&nbsp;&nbsp;January 15, 2016</font></td>
      <td style="border-bottom: Black 1pt solid; font-size: 10pt">&nbsp;</td>
      <td style="border-bottom: Black 1pt solid; font-size: 10pt"><font style="font-size: 10pt">/s/ Ben Rainwater</font></td></tr>
  <tr style="vertical-align: bottom">
      <td style="font-size: 10pt">&nbsp;</td>
      <td style="font-size: 10pt"><font style="font-size: 10pt">By:</font></td>
      <td style="font-size: 10pt"><font style="font-size: 10pt">Ben Rainwater</font></td></tr>
  <tr style="vertical-align: bottom">
      <td style="font-size: 10pt">&nbsp;</td>
      <td style="font-size: 10pt"><font style="font-size: 10pt">Its:</font></td>
      <td style="font-size: 10pt"><font style="font-size: 10pt">CEO</font></td></tr>
  </table>
  <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0"></P>
  
  <!-- Field: Page; Sequence: 60; Options: Last -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->60<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="margin: 0"></P>
  
  </BODY>
  </HTML>
metadata_documents: [{"type": "10-Q", "sequence": "1", "filename": "f10q_gacr93014.htm", "description": "FORM 10-Q", "secsgml_size_bytes": 602322}]
metadata_filer: {"company-data": {"conformed-name": "Green Automotive Co", "cik": "0001497632", "assigned-sic": "3711", "irs-number": "223680581", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "000-54049", "film-number": "161425792"}, "business-address": {"street1": "23 CORPORATE PLACE", "street2": "SUITE 150", "city": "NEWPORT BEACH", "state": "CA", "zip": "92660", "phone": "877-449-8842"}, "mail-address": {"street1": "23 CORPORATE PLACE", "street2": "SUITE 150", "city": "NEWPORT BEACH", "state": "CA", "zip": "92660"}, "former-company": {"former-conformed-name": "Matter of Time I Co.", "date-changed": "20100728"}}
text: UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  Washington, D.C. 20549
  Form 10-Q
  (Mark One)
  ☒
  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  For the quarterly period ended September 30,
  2014
  OR
  ☐
  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  For the transition period from_____________ to
  _____________.
  Commission file number 000-54049
  Green
  Automotive Company
  (Exact name of registrant as specified in
  its charter)
  Nevada
  22-3680581
  (State or other jurisdiction of
  incorporation or organization)
  (I.R.S. Employer
  Identification No.)
  2618 San Miguel, Suite 203
  Newport Beach, California 92660
  (Address of principal executive offices) (Zip Code)
  (310) 884 - 3332
  Registrant's telephone number, including
  area code
  5495 Wilson Street
  Riverside, California 92509
  (Former address, if changed
  since last report)
  (Former fiscal year, if changed since last report)
  Indicate
  by check mark whether the registrant (1) has 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
  ☒
  No ☐
  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
  ☒
  No
  ☐
  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 the definitions
  of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2
  of the Exchange Act.
  Large accelerated filer
  ☐
  Accelerated filer
  ☐
  Non-accelerated filer
  ☐
  Smaller reporting company
  ☒
  (Do not check if a smaller reporting company)
  Table of Contents
  Indicate
  by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
  o☐
  No
  ☒
  Applicable only to issuers involved in bankruptcy
  proceedings during the preceding five years:
  Indicate by check mark whether the registrant filed all documents
  and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act of 1934 subsequent to the distribution of securities
  under a plan confirmed by a court. Yes
  ☐
  No
  ☐
  Applicable only to corporate issuers:
  Indicate the number of shares outstanding of
  each of the issuer's classes of common stock, as of the latest practicable date. As of January 15, 2016, there were 747,837,198
  shares of common stock, $0.001 par value, issued and outstanding.
  2
  Table of Contents
  GREEN AUTOMOTIVE COMPANY
  PART I – FINANCIAL INFORMATION
  ITEM 1 – Financial Statements
  6
  ITEM 2 – Management's Discussion And Analysis Of Financial Condition And Results Of Operation
  34
  ITEM 3 – Quantitative And Qualitative Disclosures About Market Risk
  48
  ITEM 4 – Controls And Procedures
  48
  PART II – OTHER INFORMATION
  ITEM 1 – Legal Proceedings
  50
  ITEM 1A – Risk Factors
  51
  ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds
  51
  ITEM 3 – Defaults Upon Senior Securities
  53
  ITEM 4 – Mine Safety Disclosures
  53
  ITEM 5 – Other Information
  53
  ITEM 6 – Exhibits
  56
  3
  Table of Contents
  PART I – FINANCIAL INFORMATION
  This Quarterly Report includes forward-looking
  statements within the meaning of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements
  are based on management's beliefs and assumptions, and on information currently available to management. Forward-looking
  statements include the information concerning our possible or assumed future results of operations set forth under the heading
  "Management's Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking statements
  also include statements in which words such as "expect," "anticipate," "intend," "plan,"
  "believe," "estimate," "consider," or similar expressions are used.
  Forward-looking statements are not guarantees
  of future performance. They involve risks, uncertainties, and assumptions. Our future results and shareholder values may differ
  materially from those expressed in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking
  statements.
  4
  Table of Contents
  ITEM 1. Financial Statements
  The unaudited condensed
  consolidated financial statements of registrant for the three and nine months ended September 30, 2014 and 2013 are below. The
  condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair
  statement of the results for the interim periods presented. All such adjustments are of a normal and recurring nature.
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  Index to Financial Statements
  Page
  C
  ondensed Consolidated Balance Sheets – September 30, 2014 (Unaudited) and December 31, 2013
  6
  Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2014 and 2013 (Unaudited)
  7
  Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2014 and 2013 (Unaudited)
  8
  Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2014 and 2013 (Unaudited)
  9
  Notes to Condensed Consolidated Financial Statements (Unaudited)
  10
  5
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  Condensed Consolidated Balance Sheets
  September 30, 2014 and December 31, 2013
  September 30,
  December 31,
  2014
  2013
  Current Assets
  Cash
  $
  44,135
  $
  2,902
  Accounts receivable
  800
  —
  Inventories
  599,657
  177,346
  Prepaid expenses and deposits
  —
  545,409
  Other
  5,138
  —
  Current assets from non-continuing operations
  —
  492,806
  Total Current Assets
  649,730
  1,218,463
  Non-Current Assets
  Property and equipment, net
  372,219
  455,287
  Non-current assets from non-continuing operations
  —
  153,118
  Total Non-Current Assets
  372,219
  608,405
  Other Assets
  Deferred financing cost
  —
  60,000
  Total Other Assets
  —
  60,000
  Total Assets
  $
  1,021,949
  $
  1,886,868
  Current Liabilities
  Accounts payable and accrued expenses
  $
  554,127
  $
  197,179
  Current portion of notes payable
  1,067,426
  845,396
  Credit facility and other advances
  14,134
  —
  Derivative liability
  12,814,383
  71,752,773
  Funds received not converted into equity (net of discount)
  —
  215,000
  Sums due to Global Trade Finance
  25,000
  25,000
  Sums due to Global Market Advisors
  170,889
  170,889
  Other payables
  —
  176,836
  Current liabilities from discontinued operations
  2,954,051
  1,962,611
  Total Current Liabilities
  17,600,010
  75,345,683
  Long-term Liabilities
  Loans payable, net of current maturities
  22,500
  203,946
  Total Long-term Liabilities
  22,500
  203,946
  Total Liabilities
  17,622,510
  75,549,629
  Contingencies
  —
  —
  Stockholder's Deficit
  Preferred stock, Class A Convertible Preferred Stock
  100,000,000 shares authorized at September 30, 2014
  and December 31, 2013,  $.001 par value, 782,701 and 924,366 shares
  issued and outstanding at September 30, 2014 and December 31, 2013, respectively
  783
  924
  Preferred stock, Class Y Convertible Preferred Stock
  40,000,000 shares authorized at September 30, 2014
  $.001 par value, 35,561,651 shares issued and outstanding
  at September 30, 2014 and 0 at December 31, 2013, respectively
  35,563
  Common stock, 900,000,000 shares authorized,
  $.001 par value 639,988,456 and 405,043,436 shares issued
  and outstanding at September 30, 2014 and December 31, 2013, respectively
  639,988
  405,043
  Additional paid-in capital
  47,312,340
  37,019,643
  Accumulated other comprehensive loss
  (186,617
  )
  (198,424
  )
  Accumulated deficit
  (64,402,618
  )
  (110,889,947
  )
  Total  Stockholder's Deficit
  (16,600,562
  )
  (73,662,761
  )
  Total Liabilities and Stockholders' Deficit
  $
  1,021,949
  $
  1,886,868
  The accompanying notes are an integral part of
  the unaudited condensed consolidated financial statements
  6
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  Condensed Consolidated Statements of Operations
  For The Three and Nine Months Ended September
  30, 2014 and 2013
  (Unaudited)
  For the three months ended
  For the nine months ended
  September 30,
  September 30,
  2014
  2013
  2014
  2013
  (restated)
  (restated)
  Revenues
  $
  1,662,918
  $
  644,624
  $
  3,459,607
  $
  828,888
  Costs of goods sold
  1,281,116
  483,938
  3,281,507
  630,462
  Gross profit
  381,802
  160,686
  178,099
  198,426
  Operating expenses
  Depreciation and amortization
  38,697
  18,384
  87,069
  19,705
  Loss on disposal of assets
  —
  12,516
  —
  —
  Impairment of assets
  373,060
  —
  373,060
  —
  General and administrative
  341,361
  5,166,470
  6,815,927
  6,927,683
  753,118
  5,197,370
  7,276,056
  6,947,388
  Operational income/ (loss)
  (371,316
  )
  (5,036,684
  )
  (7,097,957
  )
  (6,748,962
  )
  Other income/(expenses)
  Change in fair value of derivative liability
  (361,135
  )
  (18,766,197
  )
  57,095,577
  18,850,333
  Stock issued for settlements
  —
  (1,237,200
  )
  —
  (1,237,200
  )
  Gain (loss) on settlement of debt
  —
  —
  (484,028
  )
  —
  Loss on conversion of preferred shares
  —
  (16,116
  )
  —
  (36,490
  )
  Other income/(expense)
  660,296
  —
  460,296
  —
  Interest income/(expense)
  194,581
  (28,929
  )
  (1,642,960
  )
  (194,673
  )
  493,742
  (20,048,442
  )
  55,428,885
  17,381,970
  Income/(Loss) from continuing operations
  122,427
  (25,085,126
  )
  48,330,929
  10,633,008
  Income/(Loss) from discontinued operations
  (4,347,499
  )
  (325,262
  )
  (1,843,600
  )
  (962,421
  )
  Earnings before income tax
  (4,225,072
  )
  (25,410,387
  )
  46,487,329
  9,670,587
  Income taxes
  —
  —
  —
  —
  Net income
  $
  (4,225,072
  )
  $
  (25,410,387
  )
  $
  46,487,329
  $
  9,670,587
  Income (loss) per share (Basic)
  $
  (0.01
  )
  $
  (0.07
  )
  $
  0.08
  $
  0.03
  Income (loss) per share (Diluted)
  $
  (0.01
  )
  $
  (0.07
  )
  $
  0.04
  $
  0.01
  Weighted average shares outstanding (Basic)
  659,999,514
  384,197,678
  573,312,300
  356,544,473
  Weighted average shares outstanding (Diluted)
  659,999,514
  384,197,678
  1,245,719,364
  735,405,168
  The accompanying notes are an integral part of
  the unaudited condensed consolidated financial statements
  7
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  Condensed Consolidated Statements of Comprehensive
  Income / (Loss)
  For The Three and Nine Months Ended September
  30, 2014 and 2013
  (Unaudited)
  For the three months ended
  For the nine months ended
  September 30,
  September 30,
  2014
  2013
  2014
  2013
  (restated)
  (restated)
  Net income (loss)
  $
  (4,225,072
  )
  $
  (25,410,387
  )
  $
  46,487,329
  $
  9,670,587
  Other comprehensive loss, net of tax:
  Foreign currency translation
  (51,526
  )
  (137,095
  )
  11,808
  (52,289
  )
  Comprehensive income (loss)
  (4,276,598
  )
  (25,547,482
  )
  46,499,137
  9,618,298
  The accompanying notes are an integral part of
  the unaudited condensed consolidated financial statements
  8
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  Condensed Consolidated Statements of Cash
  Flows
  For The Nine Months Ended September 30, 2014
  and 2013
  (Unaudited)
  September 30,
  2014
  2013
  (restated)
  OPERATING ACTIVITIES:
  Net income
  $
  46,487,329
  $
  9,670,588
  Adjustments to reconcile net loss to net cash used in operating activities:
  Depreciation and amortization
  147,069
  45,494
  Debt discount
  Amortization of debt discounts
  1,671,252
  14,119
  Loss on disposal of assets
  200,000
  25,876
  Shares issued for settlement of agreement
  226,797
  1,237,200
  Loss on conversion of preferred shares
  36,490
  (Gain)/loss on settlement of debt
  484,028
  Shares issued for services
  92,000
  Change in fair value of derivative liability
  (57,095,577
  )
  (18,850,333
  )
  Share based compensation
  5,717,015
  6,191,202
  Stock Options
  523,905
  Changes in operating assets and liabilities:
  Accounts receivable
  (800
  )
  143,975
  Inventories
  (422,311
  )
  (215,942
  )
  Other assets
  (5,138
  )
  (3,703
  )
  Assets in discontinuing operations
  658,923
  Liabilities in discontinuing operations
  (1,962,611
  )
  Prepaid expenses
  545,409
  (17,331
  )
  Accounts payable and accrued expenses
  1,775,678
  661,155
  Deferred revenue
  —
  207,846
  Other liabilities
  115,412
  Net cash used in operating activities
  (957,033
  )
  (737,952
  )
  INVESTING ACTIVITIES:
  Proceeds from disposal of vehicles
  28,126
  Cash received from acquisition
  14,896
  Purchase of property and equipment
  (17,000
  )
  (587,411
  )
  Net cash used in investing activities
  (17,000
  )
  (544,389
  )
  FINANCING ACTIVITIES:
  Proceeds from funds received from FMS
  907,839
  Proceeds from issuance of common stock
  13,500
  Borrowings on line of credit, net
  14,134
  Payments to reduce line of credit
  (69,628
  )
  Proceeds from notes payable
  1,085,682
  467,406
  Payments to notes payable
  (109,860
  )
  Net cash provided by financing activities
  1,003,456
  1,305,617
  Effect of change in exchange rate on cash
  11,808
  (48,418
  )
  Net  (decrease) / increase in cash
  41,231
  (25,142
  )
  CASH AT BEGINNING PERIOD
  2,902
  87,325
  CASH AT END OF PERIOD
  $
  44,133
  $
  62,183
  SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid for interest
  Cash paid for income taxes
  NON-CASH INVESTING AND FINANCING TRANSACTIONS
  Share based compensation
  $
  214,286
  Common shares issued in exchange for preferred shares
  $
  2,468,841
  $
  11,278,686
  Common shares issued to settle liabilities
  $
  5,010,110
  $
  268,142
  Common shares issued in relation to investment in a JV
  $
  378,792
  $
  335,895
  Common shares issued in relation to acquisition
  $
  6,755,290
  Common shares issued for debt conversion
  $
  2,244,708
  Preferred shares converted to ordinary
  $
  (105
  )
  Preferred shares issued to settle debt
  $
  210,000
  $
  800,932
  The accompanying notes are an integral part
  of the unaudited condensed consolidated financial statements
  9
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  1. DESCRIPTION OF BUSINESS
  We are involved in the development, manufacturing and sale of diesel,
  gas, CNG and electric buses. We plan to move forward with the production of all-electric buses, as well as begin converting other
  mass transit vehicles into electric powered vehicles. We expect this to be the core focus of our business activities going forward.
  We recently introduced a prototype electric bus, which we named the E-Patriot line. The E-Patriot seats 15-23 passengers, depending
  on configuration and is expected to have a hundred mile range in-between charges when it is ready for market.
  We are a corporation originally organized under the laws of the
  State of Delaware in 1996, but re-incorporated in Nevada effective June 3, 2011. We formerly operated under the name GANAS Corp.
  ("GANAS"). Prior to November 2009, GANAS' objective was to obtain through acquisition and/or merger transactions,
  assets, which could benefit our shareholders. Effective November 4, 2009, GANAS acquired Go Green USA LLC, a Nevada limited liability
  company organized on April 28, 2009 ("Go"), in a share exchange transaction pursuant to which newly issued shares of
  GANAS common stock were issued in exchange for all of the issued and outstanding membership interests of Go (the "Go Merger").
  The Go Merger resulted in GANAS issuing 1,436,202 shares of its common stock with par value $0.001 for each 1% membership interest
  in Go, following which GANAS changed its name to Green Automotive Company Corporation. Effective September 30, 2011, we effected
  a Change of Domicile, re-incorporating in Nevada and simplifying our name to Green Automotive Company, among other things (the
  "Re-Incorporation").
  Matter of Time Merger
  On September 1, 2011, Green Automotive Company entered into a Stock
  Purchase Agreement and Escrow Agreement with Mark E. Crone ("Crone") and Bosch Equities, L.P. ("Bosch"),
  under which we purchased 100% of the outstanding equity of Matter of Time I Co., a Nevada corporation ("MOT"), and
  extinguished a repayment obligation of MOT totaling $6,000, all in exchange for $30,000.
  On February 10, 2012, Green Automotive Company entered into a Merger
  Agreement and Plan of Reorganization with Matter of Time I Co., a Nevada corporation ("MOT") (the "MOT Agreement").
  Under the MOT Agreement, at the closing of the transaction contemplated by the MOT Agreement, MOT dissolved into and became a part
  of Green Automotive Company, with Green Automotive Company being the surviving corporation and assuming MOT's status as a
  reporting issuer under the Securities Exchange Act of 1934, as amended. On December 14, 2012 the transactions contemplated by the
  MOT Agreement closed (the "Closing"). As a result of the Closing, MOT was merged out of existence and Green Automotive
  Company became a reporting issuer under the Securities Exchange Act of 1934, as amended.
  Liberty Transaction
  On June 28, 2012, we entered into a Stock Exchange Agreement (the
  "Liberty Agreement") with Liberty Electric Cars Limited., an England and Wales private company limited ("LEC"),
  and its wholly-owned subsidiary LEC 2 Limited, an England and Wales private company limited ("LEC2" and together with
  LEC, the "LEC Entities"), under which our wholly-owned subsidiary, Liberty Automotive Group, Inc. (formerly GAC EV
  Motors Inc.), a Nevada corporation ("LAG") agreed to purchase 100% of the issued and outstanding securities of LEC
  (the "LEC Shares"), that owns 100% of the issued and outstanding securities of LEC2 (the "LEC2 Shares")
  (collectively the "LEC Securities") in exchange for the transfer of Thirty Nine Million Seven Hundred Forty Two Thousand
  One Hundred Seventy Eight (39,742,178) shares of our common stock held by LAG to the LEC Shareholders. The value of these shares
  at the close of trading on the day of issuance was $17,486,558. These shares represented approximately 8.19% of our outstanding
  voting control at the time. We also issued to Mr. West and Mr. Hobday, the executives of LEC, a total of 300,000 shares of our
  Series A Preferred Stock (subject to forfeiture on a pro rata basis over a three year period) in exchange for the non-competition
  provisions in their independent contractor agreements. This transaction closed on July 23, 2012. Subsequently, on or about August
  15, 2014, LEC, along with each of LEC's wholly owned subsidiaries, ceased business operations.
  10
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  As a result of the Liberty Transaction, we acquired Liberty Electric
  Company (LEC), a company that designed and developed electric vehicle drive solutions for use in its own converted vehicles and
  for sale to original equipment manufacturers (OEMs) for incorporation into their production. LEC's engineers contributed
  to the invention of innovative EV drive train technologies that was believed to be employable in a wide variety of vehicle platforms.
  LEC was also a contributing member of a number of advanced research programs for developing next generation electric vehicle ("EV")
  solutions. These programs included the "Deliver" project where LEC collaborated with "tier one" automotive
  companies to develop a pure electric commercial vehicle, and the "Motore" project in which LEC collaborated with "tier
  one" automotive companies and universities to develop a "rare earth" free electric motor technology. Additionally,
  LEC created after sales support for EVs including the Modec truck and the G-Wiz car, by developing a comprehensive aftermarket
  maintenance program throughout Europe for its customers' electric trucks and cars.
  Due to its experience in EV technologies and in servicing EVs, LEC
  had an agreement with a large U.S. truck manufacturer for the on-going support of electric vehicles run by its key clients in Europe.
  LEC continued to take care of all warranty support when required by these customers, all of whom run fleets of electric commercial
  vehicles across Europe. This truck manufacturer's customers include major companies such as FedEx, UPS and Veolia, who are
  using the first "ground up" electric trucks known as the "Modec" that were launched some four years ago
  for the purpose of making pollution free deliveries in urban areas.
  Pursuant to the Liberty Agreement, we also issued to GAC Automotive
  Services, Inc., a Nevada corporation and one of our wholly-owned subsidiaries ("GAC Auto") Ten Million (10,000,000)
  shares of Series B Convertible Preferred Stock (the "Series B Shares"). The issuance of the Series B shares to GAC
  Auto was not part of the purchase price of the LEC Entities and was not compensation to the LEC Entities or LEC Shareholders, but
  was reserved for issuance to shareholders of certain entities that LEC and/or LEC2 have been in negotiations with at the time of
  execution of the Liberty Agreement if those entities and/or assets were purchased by us or our subsidiaries. Subsequently, instead
  of issuing the B shares, we agreed to issue 59,000,000 GACR shares to the former shareholders for LEC's acquisitions of OEC
  International Limited (OEC) and Footloose 4x4 Limited (Footloose). However, the 59,000,000 shares were never issued and we have
  never consolidated OEC nor Footloose into our financial statements. Subsequently, LEC and its subsidiaries, excluding Footloose,
  ceased operations on or about August 15, 2014, and are in liquidation under a voluntary liquidation in accordance with Section
  98 of the United Kingdom's Insolvency Act of 1986. LEC began to wind down Footloose in late 2013. A formal petition to liquidate
  Footloose was presented on 3 July 2014 and a formal Resolution for Voluntary Winding-up was granted August 27, 2014. Legal representation
  of the liquidation was facilitated by Everys Solicitors, Taunton, United Kingdom.
  To date, all of the Series B Shares are still held by GAC Auto.
  For reporting purposes, the Series B Preferred Stock is eliminated upon consolidation.
  Newport Coachworks Transaction
  On October 12, 2012, we entered into an Acquisition and Stock Exchange
  Agreement (the "NCWI Agreement") with Newport Coachworks, Inc., a California corporation ("NCWI"), under
  which we agreed to purchase 100% of the issued and outstanding securities of NCWI (the "NCWI Shares") from Mr. Carter
  Read, NCWI's sole shareholder, in exchange for the transfer of Five Million (5,000,000) shares of our common stock due at
  the closing of the transaction (the "GAC Closing Shares"), and up to an additional Twenty Two Million (22,000,000)
  shares of our common stock (the "GAC Additional Shares" and together with the GAC Closing Shares, the "GAC Shares")
  to vest as follows: upon NCWI obtaining bona fide, binding purchase orders, with cash down payment standard in the industry to
  NCWI, from third party purchasers requiring NCWI to manufacturer Sixty (60) buses with compressed natural gas engines at NCWI's
  manufacturing facility (each a "Qualified Purchase Order") within the first twelve (12) months following the payment
  of one-half of the initial forecasted funding of $500,000. This transaction closed on October 12, 2012. On or by July 18, 2013,
  27,000,000 GAC shares were issued to Mr. Read.
  11
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  1. DESCRIPTION OF BUSINESS (continued)
  Going Green Transaction
  On January 31, 2013, the Company signed a binding agreement to buy
  U.K.-based electric vehicle distributor Going Green Limited, which operated under the brand name "GoingGreen." Founded
  in 2002, it sold over 1,400 G-Wiz vehicles, an electric vehicle manufactured in India by the Indo-Reva Electric Car Company. The
  acquisition was completed on or about April 1, 2013 when 1,562,498 shares of GAC common stock were authorized for exchange for
  100% of the issued and outstanding securities of Going Green Limited and 150,501 shares of GAC common stock for issuance to former
  creditors of Going Green. Due to a temporary restraining order in an unrelated litigation in Utah by us against a former stockholder
  the shares were not released by our transfer agent until June 24, 2013. Ian Hobday, our then CEO, and Daren West, our former CFO,
  served as directors of Going Green prior to the acquisition. On or about August 15, 2014, Going Green ceased operations and is
  in liquidation under a voluntary liquidation in accordance with Section 98 of the United Kingdom's Insolvency Act of 1986.
  With creditors' approval, on or about August 27, 2014, former
  LEC and Going Green staff members, led by Clive Southwell, a director of the U.K. businesses at the time LEC and Going Green ceased
  operations, along with financial support from former GAC director Nicholas Hewson and our then CEO Ian Hobday, purchased the assets
  of Going Green through a company they organized, Clean Transport and Technology Limited ("CTT") for a purchase price
  of £22,800 (£19,000 plus £3,280 value added tax (VAT)) and the assets of LEC2 for £7,200 (£6,000
  plus £1,200 VAT) for a total of £30,000. The assets of LEC2 consisted primarily of spare parts and batteries, and the
  assets of Going Green consist primarily of parts, equipment and used vehicles. The sale proceeds were paid to Lameys and the sales
  were approved at the respective creditors' committee meetings when they were held.
  Viridian Motor Corporation Transaction
  On or about January 9, 2014 we acquired 21.63% of Viridian Motor
  Corporation (VMC), a US-based electric truck manufacturer. VMC was a company devoted to advancing twenty-first century transportation
  technology using alternative fuels and propulsion systems to build fully electric, light duty trucks, which included their own
  electric drive train and unique battery packs. In February 2014 we acquired an additional 1.5% of the company. On January 6, 2014,
  we issued 1,292,270 shares to Burton Neil and Dale Nyhus for an obligation of $173,060 related to the acquisition. The value of
  the issued shares on the day of issuance was $206,763. For the period ending September 30, 2014, we impaired the value of the investment
  in VMC by 100%.
  2. BASIS OF PRESENTATION
  The accompanying unaudited condensed interim consolidated financial
  statements have been prepared in accordance with generally accepted accounting principles ("GAAP") as promulgated in
  the United States of America.
  The unaudited condensed interim consolidated financial statements
  at September 30, 2014 and for the three and nine-month periods ended September 30, 2014 and 2013 are unaudited, but include all
  adjustments, consisting of normal recurring entries, which our management believes to be necessary for a fair presentation of the
  periods presented. Interim results are not necessarily indicative of results for a full year.
  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  The summary of significant accounting policies presented below is
  designed to assist in understanding the Company's condensed consolidated financial statements. Such condensed consolidated
  financial statements and accompanying notes are the representations of the Company's management, who is responsible for their
  integrity and objectivity. These accounting policies conform to GAAP in all material respects, and have been consistently applied
  in preparing the accompanying condensed consolidated financial statements.
  12
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
  Principles of Consolidation
  The Company's unaudited condensed consolidated financial statements
  include the assets, liabilities and operating results of majority-owned subsidiaries. The Company does not hold significant variable
  interests in any variable interest entities. All significant intercompany accounts and transactions have been eliminated.
  Reverse Merger Accounting
  The MOT Merger was accounted for as a reverse-merger and recapitalization
  in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Green Automotive
  Company was the acquirer for financial reporting purposes and MOT was the acquired company. Consequently, the assets and liabilities
  and operations that are reflected in the historical financial statements prior to the Merger will be those of Green Automotive
  Company and will be recorded at the historical cost basis of the Company. The consolidated financial statements after completion
  of the Merger include the assets and liabilities of Green Automotive Company. Common stock and the corresponding capital amounts
  of the Company pre-merger have been retroactively restated as capital stock shares reflecting the exchange ratio in the Merger.
  Going Concern
  Our condensed consolidated financial statements have been prepared
  assuming the Company will continue as a going concern. However, as of September 30, 2014, we have sustained recurring operating
  losses, have outstanding payables, a stockholders' deficit of $16,600,561, have ceased operations in the United Kingdom and
  have insufficient operating capital. These conditions, among others, give rise to substantial doubt about our ability to continue
  as a going concern and increase the likelihood of bankruptcy. Management is continuing to seek additional capital to fund our ongoing
  business and improve the profitability of existing operations. Until such time, our working capital needs must be funded through
  the issuance of additional debt and equity instruments; however, there can be no assurance that we will receive the sums required
  at the times and in the amounts needed, or that any funding will not be accompanied by conditions unfavorable to us. Management
  believes these steps may provide us with adequate funds to sustain our continuing existence. There is, however, no assurance that
  the steps taken by management will meet all of our needs or that we can continue as a going concern. The accompanying condensed
  consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty or from
  bankruptcy.
  Use of Estimates
  The preparation of the condensed consolidated
  financial statements requires our management to make a number of estimates and assumptions relating to the reported amount of assets
  and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements
  and the reported amounts of revenues and expenses during the reporting period. The assumptions used by management in future estimates
  could change significantly due to changes in circumstances, including, but not limited to, challenging economic conditions. Accordingly,
  future estimates may differ significantly.
  S
  ignificant
  estimates and assumptions included in our condensed consolidated financial statements relate to the valuation of long-lived assets,
  inventory reserves, accruals for potential liabilities, and valuation assumptions related to derivative liability, equity instruments
  and share based compensation.
  Cash and Cash Equivalents
  Cash and cash equivalents consist of amounts held as bank deposits
  and highly liquid debt instruments purchased with an original maturity of three months or less. The Company had no cash equivalents
  as of September 30, 2014 and December 31, 2013.
  13
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
  Discontinued Operations
  On or about August 15, 2014, our United Kingdom based subsidiaries,
  including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC's wholly owned subsidiaries
  (collectively, the U.K. Companies), ceased business operations. As a result, we are reporting the operational results of the U.K.
  Companies under Discontinued Operations. Operational results under Discontinued Operations includes a 100% impairment of all U.K.
  Companies' assets, a full write down of the value of each company's equity (or deficit), and the net earnings or losses
  incurred by each. We will continue to carry each company's liabilities on our books under liabilities from discontinued operations
  until such time as the voluntary liquidations currently underway are finalized. Additionally, comparative periods, within our financial
  statements and accompanying notes, have been reclassified to show financial data for our former U.K. Companies under discontinued
  operations. Such reclassifications had no impact on previously reported net losses.
  Recent Accounting Pronouncements
  Adopted
  In February 2013, Financial Accounting Standards Board ("FASB")
  issued Accounting Standards Update ("ASU") 2013-04,
  Obligations Resulting from Joint and Several Liability
  Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date.
  The objective of the amendments in
  this update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several
  liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting
  date, except for those obligations addressed within existing guidance in U.S. GAAP. The amendment requires an entity to measure
  obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope
  of this guidance is fixed at the reporting date as the sum of the amount the reporting entity agreed to pay on the basis of its
  arrangement among its co-obligors and an additional amount the reporting entity expects to pay on behalf of its co-obligors. The
  entity is required to disclose the nature and amount of the obligation as well as other information about those obligations. The
  Company adopted this ASU as of January 1, 2014.
  On July 18, 2013, the FASB issued ASU 2013-11,
  Income Taxes (Topic
  740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward
  Exists.
  Topic 740 does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit
  when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The objective of the amendments
  in this update is to eliminate that diversity in practice. The Company adopted this ASU as of January 1, 2014. This ASU did not
  have an effect on our financial statements.
  Not Adopted
  Other recent pronouncements issued by FASB (including its Emerging
  Task Force), the American Institute of Certified Public Accountants, and the United States Securities and Exchange Commission did
  not or are not believed by management to have a material impact on the Company's present or future financial statements.
  Reclassifications
  Certain prior year amounts have been reclassified to conform to
  the current year presentation for discontinued operations in all UK entities. Such reclassifications had no impact on previously
  reported net losses.
  14
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
  Accounts Receivable
  Accounts receivable consists of trade receivables, which are recorded
  at the invoiced amount, net of taxes, allowances for doubtful accounts and prompt payment discounts. Trade receivables do not carry
  interest. The allowance for doubtful accounts represents management's estimate of the amount of probable credit losses in
  existing accounts receivable, as determined from a review of past due balances and other specific account data. Account balances
  are written off against the allowance when management determines the receivable is uncollectible.
  Investments in Joint Ventures
  The Company applies the equity method for the 30% investment to
  its joint venture interest in Powabyke, a privately-held UK company held by our wholly owned subsidiary Liberty Electric Company
  Limited, and our 23.13% investment in Viridian Motor, a Virginia corporation, since quoted market prices are not available and
  we have the ability to exercise influence over operating and financial policies of the joint venture. Significant influence is
  generally defined as 20% to 50% ownership in the voting stock of an investee. Under the equity method, we initially record such
  investments at cost and then adjust the carrying value of the investments to recognize the proportional share of the equity-accounted
  affiliate's net income (loss) including changes in capital of the affiliates. In addition, dividends received from the equity-accounted
  company reduce the carrying value of our investment. If there is an other-than-temporary decline in the market value of the investment,
  an impairment charge is recorded. For the period ending September 30, 2014, we impaired the value of the investment in Viridian
  Motor by 100%. Our investment in Powabyke was sold during the period ending September 30, 2014.
  Inventories
  The Company's inventories are valued at cost, as determined
  by the first-in, first out (FIFO) method; in aggregate such valuations are not in excess of market.
  Concentrations
  The Company currently maintains substantially all of its cash with
  major financial institutions. At times, cash balances may be in excess of the amounts insured by the Federal Deposit Insurance
  Corporation.
  Comprehensive Income (Loss)
  In June 2011, the Financial Accounting Standards Board ("FASB")
  issued Accounting Standards Update ("ASU") No. 2011-05,
  Presentation of Comprehensive Income
  ("ASU 2011-05"),
  which amends FASB Codification Topic 220 on comprehensive income disclosures. The new guidance allows an entity to present components
  of net income and other comprehensive income in one continuous statement, referred to as the statement of comprehensive income,
  or in two separate, but consecutive statements, while eliminating the option to report other comprehensive income and its components
  in the statement of changes in shareholders' equity. The provisions of ASU 2011-05 were adopted in 2012. The adoption of
  ASU 2011-05 did not impact the Company's consolidated financial position, results of operations or cash flows as it required
  only a change in the format of presentation.
  Property and Equipment
  Property and equipment consisting of leasehold improvements, furniture
  and fixtures, equipment and vehicles are stated at cost. Property and equipment are depreciated using the straight-line method
  over the estimated service lives ranging from three to seven years. Maintenance and repairs are expensed as incurred and improvements
  are capitalized. Gains or losses on the disposition of fixed assets are recorded upon disposal.
  15
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
  Impairment of Long-Lived Assets
  Long-lived assets are reviewed for impairment whenever events or
  changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held
  and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to
  be generated by the asset.
  If the carrying amount of an asset exceeds its undiscounted estimated
  future cash flows, an impairment review is performed. An impairment charge is recognized in the amount by which the carrying amount
  of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and
  reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities
  of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of
  the balance sheet. The Company determined that there was an indicator of impairment in goodwill and other intangibles during the
  year ended December 31, 2013 because of the lowered revenue and cash flow projections. The Company uses the present value technique
  for impairment testing. At September 30, 2014, we fully impaired our investment of $173,060 in Viridian Motors and the full carrying
  value of $200,000 of our investment in World Energy Asset Management. Additionally, we fully impaired the investment values and
  assets of our U.K. Companies, the expense thereof was then reclassified and presented under discontinued operations.
  Derivative Instruments
  The fair value of derivative instruments is recorded and shown separately
  under current liabilities. Changes in the fair value are recorded in the condensed consolidated statement of income under other
  income (expense).
  The Company evaluates all of its financial instruments to determine
  if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments
  that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued
  at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative
  financial instruments, the Company uses a weighted average Black-Scholes-Merton option pricing model to value the derivative instruments
  at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments
  should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities
  are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument
  could be required within 12 months of the balance sheet date.
  Fair Value Measurements
  ASC 820, "
  Fair Value Measurements
  ", requires
  an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820
  establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure
  fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input
  that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure
  fair value: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities;
  Level 2, inputs other than level one that are either directly or indirectly observable such as quoted prices for identical or similar
  assets or liabilities on markets that are not active; and Level 3, defined as unobservable inputs in which little or no market
  data exists, therefore requiring an entity to develop its own assumptions.
  16
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
  Income Taxes
  We account for income taxes under the asset and liability method.
  Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial
  statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities
  are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected
  to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
  in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets
  to the amount expected to be realized.
  As a result of the implementation of certain provisions of ASC 740,
  Income Taxes ("ASC 740"), which clarifies the accounting and disclosure for uncertainty in tax positions, as defined,
  ASC 740 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to
  accounting for income taxes. We adopted the provisions of ASC 740 as of January 1, 2007, and have analyzed filing positions in
  each of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax years in
  these jurisdictions. We have identified the U.S. federal and California as our "major" tax jurisdictions. Generally,
  we remain subject to Internal Revenue Service examination of our 2007 through 2013 U.S. federal income tax returns, and remain
  subject to California Franchise Tax Board examination of our 2007 through 2013 California Franchise Tax Returns. However, we have
  certain tax attribute carry forwards which will remain subject to review and adjustment by the relevant tax authorities until the
  statute of limitations closes with respect to the year in which such attributes are utilized.
  We believe that our income tax filing positions and deductions will
  be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore,
  no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In addition, we did not record a cumulative
  effect adjustment related to the adoption of ASC 740. Our policy for recording interest and penalties associated with income-based
  tax audits is to record such items as a component of income taxes.
  Revenue Recognition
  We recognize revenues related to annual membership income and service
  of electric vehicles in accordance with Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC")
  No. 605,
  Revenue Recognition
  . Revenue is recognized when we have evidence of an arrangement, a determinable fee, and when
  collection is considered to be probable and services are provided. In the event that final acceptance of our product by the customer
  is uncertain, revenue is deferred until all acceptance criteria have been met. In the event we have amounts billed or collected
  in accordance with contractual terms in advance of when the work is performed we treat these as deferred revenues. For us, such
  advance payments primarily relate to the Company's grant project and E-Care membership scheme through our U.K. Companies. Due to
  the liquidation of the U.K. Companies, advance payments received for the current and comparative periods have been reclassified
  under discontinuing operations. Historically, our deferred revenue has included the following:
  Grant Income
  Grant income - not recognized until a grant claim has been submitted
  and approved by Government representatives.
  E-tech services
  Revenues from consultancy services - recognized only when all services
  have been rendered and collectability is reasonably assured.
  E-Care services
  Revenues from maintenance, repair, and overhaul services - recognized
  only when all services have been rendered and collectability is reasonably assured.
  17
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
  Earnings per Common Share (as Restated)
  The Company computes net income per share in accordance with
  ASC 260, "Earnings per Share." ASC 260 requires presentation of both basic and diluted earnings (loss) per share
  (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common
  shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all
  dilutive potential common shares outstanding during the period including 632,701 Series A Convertible Preferred Stock for
  September 30, 2014 (net of 150,000 forfeit shares) and 608,475 for September 2013 (net of 300,000 forfeit shares), using the
  if-converted method, 0 stock options for September 30, 2014, and 18,000,000 for September 30, 2013 using the treasury stock
  method, 35,562,651 Series Y Convertible Preferred Stock for September 30, 2014, and 0 for September 30, 2013 using the
  if-converted method, and 231,923,077 shares for September 30, 2014 and 2,013,070 shares for September 30, 2013 for
  convertible loan notes, using the if-converted method. In computing diluted EPS, the average stock price for the period is
  used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS
  excludes all dilutive potential common shares if their effect is anti-dilutive.
  Share-Based Payment Arrangements
  Generally, all forms of share-based payments, including stock option
  grants, restricted stock grants and stock appreciation rights are measured at their fair value on the awards' grant date,
  based on the estimated number of awards that are ultimately expected to vest. Share-based compensation awards issued to non-employees
  for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment,
  whichever is more readily determinable. The expenses resulting from share-based payments are recorded in operating expenses in
  the condensed consolidated statement of operations.
  4. ACQUISITIONS
  On January 31, 2013, the Company signed a binding agreement to buy
  UK-based electric vehicle distributor Going Green Limited. Trading under the brand name, "GoinGreen," it sold over
  1,400 G-Wiz electric vehicles, making it one of Europe's largest single retailers of electric vehicles. Going Green Limited
  was founded in 2002 and in the early days, set itself the mission to minimize the effects of climate change by encouraging carbon-neutral
  motoring. The company pioneered electric vehicles in the UK with the G-Wiz vehicle, an electric vehicle manufactured in India by
  the Indo-Reva Electric Car Company. The deal was completed on April 1, 2013 when 1,562,498 shares of GAC common stock was authorized
  for exchange for 100% of the issued and outstanding securities of Going Green Limited plus 150,501 shares of GAC common stock was
  authorized for issuance to former creditors of Going Green. Due to a temporary restraining order in an unrelated litigation in
  Utah by us against a former stockholder the shares were not released by our transfer agent until June 24, 2013.
  18
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  4. ACQUISITIONS (continued)
  The allocation of the purchase price and the estimated fair market
  values of the assets acquired and liabilities assumed of Going Green Limited are shown below.
  Cash
  $
  14,896
  Accounts receivable
  29,379
  Prepayments
  19,623
  Inventories
  75,693
  Other current assets
  27,845
  Property and equipment, net of accumulated depreciation
  14,653
  Goodwill
  769,890
  Total assets acquired
  951,979
  Credit Line
  1,584
  Accounts payable and accrued expenses
  81,313
  Deferred revenue
  34,983
  Income Tax payable
  62,345
  Other
  206,464
  Total liabilities assumed
  386,689
  Purchase Price
  $
  565,290
  Final Consideration
  1,562,498 of common stock issued @ $0.33 in exchange for equity
  515,625
  150,501 of common stock issued @ $0.33 to settle debt
  49,665
  The acquisition method of accounting is based on ASC Subtopic 805-10,
  "Business Combinations," and uses the fair value concepts defined in ASC Subtopic 820-10, "Fair Value Measurements
  and Disclosures". The purchase price for Going Green businesses was allocated to the net tangible and intangible assets based
  upon their fair values as of the respective acquisition dates. The allocation of the purchase price was based upon a valuation
  and the estimates and assumptions were subject to change within the measurement period. The excess of the purchase price over the
  fair values of the net tangible assets and intangible assets, if any, was recorded as goodwill and is generally driven by our expectations
  of our ability to realize synergies and achieve our strategic growth objectives.
  The goodwill recorded in connection with the Going Green acquisitions
  was $769,890, on the transaction acquisition date. In accordance with U.S. GAAP, impairment testing for goodwill is performed at
  least annually. The Company performs its annual impairment test as of December 31. Goodwill is tested for impairment between
  annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit
  below its carrying value.
  The impairment test for goodwill uses a two-step approach, which
  is performed at the entity level as the Company has one reporting unit. Step 1 compares the fair value of the reporting unit to
  its carrying value including goodwill. If the carrying value exceeds the fair value, there is a potential impairment and Step 2
  must be performed. Step 2 compares the carrying value of the reporting unit's goodwill to its implied fair value (i.e., the
  fair value of the reporting unit less the fair value of the unit's assets and liabilities, including identifiable intangible
  assets). If the carrying value of goodwill exceeds its implied fair value, the excess is recorded as an impairment.
  The Company performed its annual test of goodwill as of December
  31, 2013. The Company determined the fair value of the reporting unit exceeded the carrying value of the reporting unit.
  For the year ended December 31, 2013, the Company concluded there
  were indicators of potential goodwill impairment, including the decline in the value of the Company's revenue recognition.
  As a result of identifying indicators of impairment, the Company performed an impairment test of goodwill as of December 31,
  2013.
  19
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  4. ACQUISITIONS (continued)
  In performing Step 1 of the impairment test, the Company estimated
  the fair value of the reporting unit using the market approach for purposes of estimating the total enterprise value for the Company.
  The market approach is based on the guideline publicly traded company
  method to determine the fair value of the reporting unit. Under this method, market multiples ratios were applied to the reporting
  unit's earnings with consideration given to the Company's size, product offerings, growth, and other relevant factors
  compared to those of the guideline companies. The guideline companies selected were engaged in the same or a similar line of business
  as the Company. Market multiples were then selected based on consideration of risk, growth, and profitability differences between
  the Company and the guideline companies. The selected market multiples were then multiplied by the Company's earnings streams
  for the twelve months ended December, 2013.
  Based on the above analysis, it was determined that the carrying
  value of the reporting unit including goodwill exceeded the fair value of the reporting unit, requiring the Company to perform
  Step 2 of the goodwill impairment test to measure the amount of impairment loss, if any.
  In performing Step 2 of the goodwill impairment test, the Company
  compared the implied fair value of the reporting unit's goodwill to its carrying value of goodwill. This test resulted in
  a non-cash, goodwill impairment charge of $769,890 which was recognized during the year ended December 31, 2013. This charge had
  no impact on our cash flows or our compliance with debt covenants.
  The following table sets forth the balance of the Company's
  goodwill as of December 31, 2013:
  December 31,
  2012
  Additions
  Impairments
  December 31,
  2013
  Goodwill, gross
  $
  -
  $
  769,890
  $
  (769,890)
  $
  -
  Accumulated impairment losses
  -
  -
  -
  -
  Total goodwill, net
  $
  -
  $
  769,890
  $
  (769,890)
  $
  -
  The following are unaudited pro-forma results of operations as if
  the acquisition has occurred at the beginning of the period for the three and nine months ended September 30, 2014 and 2013. Additionally,
  the financial data herein have been reclassified to show revenues and expenses for Going Green, as well as Liberty Electric Company
  and its subsidiaries, under Income/(Loss) from discontinued operations.
  20
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  Pro-forma (unaudited)
  For The Three and Nine Months Ended September
  30, 2014 and 2013
  For the three months ended
  For the nine months ended
  September 30,
  September 30,
  2014
  2013
  2014
  2013
  (restated)
  (restated)
  Revenues
  $
  1,662,918
  $
  644,624
  $
  3,459,607
  $
  828,888
  Costs of goods sold
  1,281,116
  483,938
  3,281,507
  630,462
  Gross profit
  381,802
  160,686
  178,099
  198,426
  Operating expenses
  Depreciation and amortization
  38,697
  18,384
  87,069
  19,705
  Loss on disposal of assets
  —
  12,516
  —
  —
  Impairment of assets
  373,060
  —
  373,060
  —
  General and administrative
  341,361
  5,166,470
  6,815,927
  6,927,683
  753,118
  5,197,370
  7,276,056
  6,947,388
  Operational income/ (loss)
  (371,316
  )
  (5,036,684
  )
  (7,097,957
  )
  (6,748,962
  )
  —
  Other income/(expenses)
  Change in fair value of derivative liability
  (361,135
  )
  (18,766,197
  )
  57,095,577
  18,850,333
  Stock issued for settlements
  —
  (1,237,200
  )
  —
  (1,237,200
  )
  Gain (loss) on settlement of debt
  —
  —
  (484,028
  )
  —
  Loss on conversion of preferred shares
  —
  (16,116
  )
  —
  (36,490
  )
  Loss on conversion of preferred shares
  660,296
  —
  460,296
  —
  Other income/(expense)
  194,581
  (28,929
  )
  (1,642,960
  )
  (194,673
  )
  493,742
  (20,048,442
  )
  55,428,885
  17,381,970
  Income/(Loss) from continuing operations
  122,427
  (25,085,126
  )
  48,330,929
  10,633,008
  —
  —
  Income/(Loss) from discontinued operations
  (4,347,499
  )
  (325,261
  )
  (1,843,600
  )
  (1,004,407
  )
  —
  —
  Earnings before income tax
  (4,225,072
  )
  (25,410,387
  )
  46,487,329
  9,628,601
  Income taxes
  —
  —
  —
  —
  Net income
  $
  (4,225,072
  )
  $
  (25,410,387
  )
  $
  46,487,329
  $
  9,628,601
  Income (loss) per share (Basic)
  $
  (0.01
  )
  $
  (0.07
  )
  $
  0.08
  $
  0.03
  Income (loss) per share (Diluted)
  $
  (0.01
  )
  $
  (0.07
  )
  $
  0.04
  $
  0.01
  Weighted average shares outstanding (Basic)
  659,999,514
  384,197,678
  573,312,300
  356,544,473
  Weighted average shares outstanding (Diluted)
  659,999,514
  384,197,678
  1,245,719,364
  735,405,168
  On or about August 15, 2014, Going Green ceased operations and is
  in liquidation under a voluntary liquidation in accordance with Section 98 of the United Kingdom's Insolvency Act of 1986.
  On or about January 9, 2014 we acquired 21.63% of Viridian Motor
  Corporation (VMC), a US-based electric truck manufacturer. VMC was a company devoted to advancing twenty-first century transportation
  technology using alternative fuels and propulsion systems to build fully electric, light duty trucks, which included their own
  electric drive train and unique battery packs. In February 2014 we acquired an additional 1.5% of the company. On January 6, 2014,
  we issued 1,292,270 shares to Burton Neil and Dale Nyhus for an obligation of $173,060 related to the acquisition. The value of
  the issued shares on the day of issuance was $206,763. For the period ending September 30, 2014, we impaired the value of the investment
  in VMC by 100%.
  21
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  5. ACCOUNTS RECEIVABLE
  Accounts receivable consists of the following: as of September 30,
  2014 and December 31, 2013:
  Accounts Receivables
  September 30,
  2014
  December 31.
  2013
  Trade receivables
  $
  800
  $
  0
  Grant monies receivable
  -
  0
  $
  800
  $
  0
  Due to the liquidation of the U.K. Companies, accounts receivable
  for the comparative period for our U.K. Companies have been reclassified as assets under discontinuing operations in our balance
  sheet presentation. Without the reclassification for the comparative period December 31, 2013, trade receivables were $123,254
  and grant monies receivable was $31,024, both of which were receivables for the U.K. Companies.
  6. INVENTORIES
  Inventories consist of raw materials and work in progress. These
  pertain to the Bus production in the Newport Coachworks facility. The Company's inventories are valued at cost, as determined
  by the first-in, first out (FIFO) method; in aggregate such valuations are not in excess of market and consisted of the following
  as of September 30, 2014 and December 31, 2013 (reclassified).
  September 30,
  2014
  December 31,
  2013
  Raw materials
  $
  104,882
  $
  31,922
  Goods in transit
  -
  Work in progress
  494,775
  145,424
  Finished Goods
  -
  $
  599,657
  $
  177,346
  Due to the liquidation of the U.K. Companies, inventory for the
  comparative period for our U.K. Companies has been reclassified as assets under discontinuing operations in our balance sheet presentation.
  Without the reclassification for the comparative period December 31, 2013, the inventory total would have been $412,312, of which
  $234,966 was inventory for the U.K. Companies.
  7. PROPERTY AND EQUIPMENT
  Property and equipment consists of the following: as of September
  30, 2014 and December 31, 2013:
  September 30,
  2014
  December 31,
  2013
  Leasehold improvements
  $
  4,000
  $
  Furniture and fixtures
  Equipment
  492,475
  492,475
  Computer hardware and software
  6,347
  6,347
  Vehicles
  502,822
  498,822
  Less accumulated depreciation
  (130,603)
  (43,534)
  $
  372,219
  $
  455,287
  Our property and equipment as of September 30, 2014 are
  located in California. As of September 30, 2014 and December 31, 2013 (reclassified), depreciation expense was $87,069 and
  $19,705 respectively. Due to the liquidation of the U.K. Companies, our U.K. Companies' property and equipment for the
  comparative period, which totaled $143,118 (net of accumulated depreciation) has been reclassified as assets under
  discontinuing operations in our balance sheet presentation.
  22
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  STATEMENTS
  (UNAUDITED)
  8. GOODWILL & INTANGIBLE ASSETS
  Intangible assets consist of the following and were mainly related
  to the LEC and Going Green acquisitions:
  September 30,
  2014
  December 31,
  2013
  Goodwill on purchase of Going Green
  $
  769,890
  $
  769,890
  Go License
  500,000
  500,000
  Crash test homologation costs
  228,912
  228,912
  Liberty acquired technology
  619,462
  619,462
  Assembled workforce
  689,000
  689,000
  Trade name and website
  45,000
  45,000
  Non-compete agreement
  1,500,000
  1,500,000
  4,352,264
  4,352,264
  Less amortization and impairment
  (4,352,264
  )
  (4,352,264
  )
  $
  —
  $
  —
  Amortization expense was $0 for the nine
  months ended September 30, 2014 and the year ended December 31, 2013. The Company impaired the remaining basis in the intangibles
  during the year ended December 31, 2012 as management revised its sales forecast for the product which impaired the goodwill as
  of December 31, 2012. There was no impairment of goodwill for the nine months ended September 30, 2013.
  9. DEFERRED REVENUE
  Deferred revenue consists of the following: as of September 30,
  2014 and December 31, 2013:
  Deferred Revenues
  September 30,
  2014
  December 31.
  2013
  Deferred Grant Income
  $
  $
  -
  Deferred membership fees
  -
  $
  $
  -
  As all of our deferred revenue was derived from our U.K. Companies'
  operations for both periods, all of our deferred revenue for the period ending December 31, 2013 has been reclassified under discontinued
  operations.
  10. FUNDS RECEIVED NOT CONVERTED INTO EQUITY (NET OF DISCOUNT)
  We received advances during the year ended December 31, 2013 in
  the amount of $215,000. These advances were made directly from the shareholders. The Company issued common shares during the first
  six months of 2014 to settle these advances.
  11. SUMS DUE TO GLOBAL MARKET ADVISORS
  On July 19, 2010, we entered into an Advisory Agreement (the "Advisory
  Agreement') with Global Market Advisors, Inc., a Nevada corporation ("GMAI"). Under the Advisory Agreement, GMAI
  was retained by us to assist with a variety of services, including, but not limited to, assisting us with our filings as a public
  company, making the public aware of us and our business, and provide general advice to our management in order to execute our business
  plan and strategy. The agreement was terminated with effect on July 31, 2013. In exchange for the services rendered, we agreed
  to compensate GMAI in the amount of $170,889. This amount remained outstanding as of December 31, 2013 and as of September 30,
  2014.
  23
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  12. SUMS DUE TO GLOBAL TRADE FINANCE
  On January 1, 2012 the Company made and entered into a credit facility
  with Global Trade Finance ("GTF") to provide credit up to $250,000. The Company had drawn down $79,000 of the facility
  through the second quarter of 2012. The effective rate of interest is 8% on the facility, and the facility was to be secured by
  5,000,000 shares of Green Auto common stock, and the advances made to the Company under the credit facility were not reduced to
  Convertible Notes. The facility was to be due January 1, 2013, or up to twenty four months if demand for repayment is not made,
  however, effective September 30, 2012, the $79,000 was converted into 1,500,000 shares of the Company's common stock. The
  Company recorded $4,000 gain on settlement of debt. The Company also borrowed another $25,000 on this facility that it still owes
  under the same terms listed above as of September 30, 2014 and December 31, 2013.
  13. NOTES PAYABLE, NET OF DISCOUNTS
  As a result of our inability to file our Form 10-Q for the period
  ended September 30, 2014 within the time period required under the Securities Exchange Act of 1934, as amended, we have defaulted
  on certain covenants under various loan documents with our note holders regarding timely filings with the SEC. Additionally, we
  no longer have sufficient authorized shares for convertible note holders to convert their notes. We currently are in discussions
  to revise the note agreements, including waivers of default remedies. Because we believe we will achieve waivers of the default
  remedies, the values stated for the convertible notes do not include remuneration for default remedies.
  24
  Table of Contents
  Notes Payable
  September 30,
  December 31,
  2014
  2013
  Blue Citi - Convertible Note Payable, 0% interest, convertible at 40% discount to market price, unsecured
  $
  277,500
  $
  —
  R Knight £38,500 Note Payable, Nil Interest, when funds permit, unsecured
  —
  63,487
  P Beitl £109,576 Note Payable, Nil Interest, when funds permit, unsecured
  180,691
  David Voss Note Payable, 15% Interest, unsecured, convertible at fixed 00.5 cents per share
  15,000
  —
  Black Mountain - Convertible Note Payable, 10% interest, convertible at 35% discount to market price, unsecured
  62,000
  —
  Union Capital Note Payable, 8% Interest, unsecured, convertible at 42% discount to market price after 180 days
  45,000
  —
  N Jones £10,053 Note Payable, Nil Interest, unsecured
  16,577
  I Hobday – Note payable, Nil interest, unsecured
  24,419
  5,813
  P Lilley £700 Note Payable, Nil Interest, unsecured
  1,191
  1,154
  L G Capital Note payable, 8% Interest, unsecured, convertible at 50% discount to market price after 180 days
  27,000
  76,500
  Auctus Note Payable, 8% Interest, unsecured, convertible at 42% discount to market price after 180 days
  —
  37,750
  JMJ Financial Note Payable, interest 12% after 90 days, unsecured, convertible at 40% discount to market price
  142,566
  82,000
  Louis Klein Note Payable, 15% Interest, unsecured, convertible at fixed 10.5 cents per share
  50,000
  50,000
  Linda Singer Note Payable, 15% Interest, unsecured, convertible at fixed 10.5 cents per share
  100,000
  100,000
  David Hopkins Note Payable, 15% Interest, unsecured , a conversion price of 50% of close price on date of notification
  20,000
  20,000
  Gel Properties Note Payable, 6% Interest, unsecured, convertible at 40% discount to market price
  —
  25,000
  Redwood Fund II Note Payable ,10% Interest, unsecured, convertible at 50% discount to market price
  —
  100,000
  Redwood Management LLC Note Payable, Nil Interest, unsecured, convertible at 50% discount to market price
  —
  336,376
  Bizloan Note payable, 36% Interest, secured
  16,802
  219,691
  Typenex Note Payable, 8% Interest, unsecured, convertible at 60% discount to market price after 180 days
  142,500
  —
  WEAM/WFC payable, 0% interest convertible at 20% discount to market price after 180 days
  200,000
  —
  Auctus Note Payable, 8% Interest, unsecured, convertible at 42% discount to market price after 180 days
  56,250
  —
  Blue Citi. 8% Interest, unsecured, convertible at 38.5% discount to market price after 180 days
  26,500
  —
  LG Capital, 8% Interest, unsecured, convertible at 35% discount to market price after 180 days
  94,050
  —
  Union Capital, 8% Interest, unsecured, convertible at 50% discount to market price after 180 days
  50,000
  —
  Accrued interest
  —
  8,080
  1,350,778
  1,323,119
  Debt Discount
  (300,153
  )
  (273,777
  )
  $
  1,050,625
  $
  1,049,342
  Current Portion
  $
  1,050,625
  $
  845,396
  Long Term
  203,946
  $
  1,050,625
  $
  1,049,342
  25
  Table of Contents
  13. NOTES PAYABLE, NET OF DISCOUNTS (continued)
  In connection with the Black Mountain convertible notes issued on
  February 13, 2014, the Company issued a five year warrant to the note holder to purchase an additional 1,200,000 common shares
  at an exercise price of $0.15. As of September 30, 2014, the adjusted number of issuable shares equaled 69,230,769 shares and the
  strike price was $0.0026. Using the Black-Scholes model and the following inputs: $0.006 market price, 1 year estimated term, 0.13%
  risk free rate and expected volatility of 178%, the warrant's value was $ 318,318. The warrant has anti-dilution provisions,
  including adjustable provisions for the exercise price. Additionally, if the warrant is exercised on a cashless basis, the market
  price would reset to $0.0523, which would negatively impact the number of shares to be issued. We are currently negotiating a settlement
  of the note with Black Mountain, which would include eliminating this warrant.
  In connection with the Blue Citi convertible notes issued on
  March 21, 2014, the Company issued a three year warrant to the note holder to purchase an additional 15,218,579 common shares
  at an exercise price of $0.0183. The warrant has anti-dilution provisions, including adjustable provisions for the exercise
  price and the number of shares. As of September 30, 2014, the adjusted number of issuable shares equaled 107,115,385 shares
  and the strike price was $0.0026. Using the Black-Scholes model and the following inputs: $0.006 market price, 1 year
  estimated term, 0.13% risk free rate and expected volatility of 178%, the warrant's value was $492,508.
  In connection with a funding transaction between the Company and
  Typenex Co-Investment, LLC, in June 2014 the Company issued a $665,000 secured convertible promissory note to Typenex payable 17
  months after the issuance date and bearing interest at the rate of 10% per annum. The loan will be funded in six installments of
  which the first installment was for $142,500 and the remainders are for $110,000 each, except the last which is for $82,500. The
  Typenex transaction had an original issue discount of $60,000 and transaction expenses of $5,000. As the lender, Typenex is secured
  by a first priority security interest on the assets of the Company. The Typenex Note is convertible into shares of the Company's
  common stock beginning on the date which is six months after each respective installment of the loan is received by the Company.
  The conversion formula is the amount of the loan being converted divided by the conversion price, which is 60% of the average of
  the three lowest Closing Bid Prices in the proceeding twenty trading days. In connection with the Typenex transaction, the Company
  issued a five year warrant to Typenex to purchase common stock that includes anti-dilution provisions. The number of shares issuable
  under the warrant equal $332,500 divided by the greater of the market price per share at the issue date of the warrant ($0.0205)
  or the average trading price per share calculated on the two days prior to the date of notice of conversion. The purchase price
  per share is determined by using the lower of the conversion price and the market price. As of September 30, 2014, the adjusted
  number of issuable shares equaled 127,884,615 and the strike price was $0.0026. Using the Black-Scholes model and the following
  inputs: $0.0026 market price, 1 year estimated term, 0.13% risk free rate and expected volatility of 178%, the warrant's
  value was $588,004.
  14. STOCK INCENTIVE PLAN
  On May 30, 2011, the Company adopted the 2011 Non-Qualified Stock
  Incentive Plan (the "Plan"). Under the Plan, participants, including both employees and nonemployees of the Company,
  have the opportunity to acquire common units of the Company. For awards made under the Plan, participants purchase common units
  at the time the award is made at (i) a stated value, or (ii) a percentage that is not less than 50% of the current fair market
  value of the stock. Award agreements with employees have a term of ten years and typically have a graded vesting terms over five
  years. If a participant ceases to be employed with the Company prior to the end of the vesting period, the participant forfeits
  his/her rights to any unvested units at the date of the termination.
  During the nine month period ending September 20, 2014,
  the Company granted 10,100,000 options and recorded a stock option expense of $523,905. No options were granted during the
  year ended December 31, 2014.
  26
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  14. STOCK INCENTIVE PLAN (continued)
  The fair value of each option award is estimated on the date of
  grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Because the Black-Scholes
  option valuation model incorporate ranges of assumptions for inputs, those ranges are disclosed. Expected volatilities are based
  on historical volatilities of the Company's stock. The Company uses historical data to estimate option exercise and employee
  termination within the valuation model. The expected term of options granted is derived from estimates and represents the period
  of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the
  option is based on the U.S. Treasury yield curve in effect at the time of grant.
  September 30,
  2014
  December 31,
  2014
  Expected Volatility
  178
  %
  170
  %
  Expected dividends
  —
  —
  Expected terms (in years)
  1
  1
  Risk-free rate
  0.13
  %
  0.13
  %
  Forfeiture rate
  —
  —
  A summary of option activity as of September 30, 2014 and
  December 31, 2013, and changes during the periods then ended is presented below:
  Weighted-
  Average
  Average
  Remaining
  Aggregate
  Exercise
  Contractual
  Intrinsic
  Options
  Price
  Life (Years)
  Value
  Outstanding at January 1, 2013
  22,000,000
  $
  0.34
  9.44
  $
  191,500
  Granted
  —
  —
  —
  —
  Exercised
  —
  —
  —
  —
  Forfeited or expired
  —
  —
  —
  —
  Outstanding at December 31, 2013
  22,000,000
  $
  0.34
  8.44
  $
  191,500
  Exercisable at December 31, 2013
  18,000,000
  $
  0.42
  8.42
  $
  —
  Weighted-
  Average
  Average
  Remaining
  Aggregate
  Exercise
  Contractual
  Intrinsic
  Options
  Price
  Life (Years)
  Value
  Outstanding at January 1, 2014
  22,000,000
  $
  0.34
  8.44
  $
  112,000
  Granted
  10,100,000
  0.06
  9.30
  523,905
  Exercised
  —
  —
  —
  —
  Forfeited or expired
  —
  —
  —
  —
  Outstanding at September 30, 2014
  32,100,000
  $
  0.30
  8.20
  $
  635,905
  Exercisable at September 30, 2014
  29,700,000
  $
  0.24
  8.22
  $
  0
  27
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  15. STOCKHOLDERS
  '
  DEFICIT
  Series Y Preferred Stock
  On September 2, 2014, we filed a Certificate
  of Designation with the Nevada Secretary of State in connection with the creation of a class of shares designated by our Board
  of Directors as the "Series Y Preferred Shares" with the characteristics described below. The purpose of the Series
  Y Preferred Shares is to create additional authorized shares of common stock by permitting the return of issued and outstanding
  shares of common stock held our management and others to the treasury for cancellation and to be available for original issuance.
  In return for the submission of the shares of common stock for cancellation, each participating shareholder shall receive an identical
  number of restricted Series Y Preferred Shares. The total number of issued and outstanding shares of common stock that may be subject
  to this arrangement is forty million (40,000,000) shares of common stock and an equivalent number of Series Y Preferred Shares.
  A total of 35,415,592 shares of common stock have been returned for cancellation and an equivalent number of restricted shares
  of Series Y Preferred Stock have been issued to the participants.
  Series A Convertible Preferred Stock ("CPS") and
  Derivative Liability
  On July 23, 2012 and in relation with the Liberty Electric Car Limited
  ("LEC") Acquisition (Note 4), the Company issued 300,000 shares of restricted preferred stock to two LEC Directors,
  Darren West and Ian Hobday, as a covenant not to compete. These preferred shares were valued at $5.00 per share and were recorded
  as part of the purchase price.
  On or about September 29, 2012, the Company issued an additional
  30,000 CPS to FMS to settle $150,000 of advances owed to FMS (see Note 4) at a conversion rate of $5.00 per CPS.
  On or about December 26, 2012, the Company issued an additional
  53,680 CPS to FMS for cash at a price of $5.00 per CPS.
  On or about December 26, 2012, the Company issued an additional
  12,121 CPS to FMS for cash at a price of $8.25 per CPS.
  On or about February 15, 2013, FMS converted 62,500 Series A preferred
  shares into 20,437,331 shares of our common stock.
  On or about March 6, 2013, the Company issued an additional 21,841
  CPS to FMS for cash at a price of $8.25 per CPS in settlement of $180,188 advances from related party.
  On or about July 26, 2013, the Company issued an additional 95,485
  CPS to FMS for cash, 51,387 at a price of $5 per CPS and 44,098 at a price of $8.25 per CPS in settlement of $620,743 advances
  from related party.
  On or about July 29, 2013, 42,152 Series A Preferred Shares were
  converted into 16,156,335 shares of our common stock.
  On or about November 27, 2013 the Company issued an additional 15,891
  CPS to FMS for cash, 2,800 at a price of $5 per CPS and 13,091 at a price of $8.25 per CPS in settlement of $122,001 advances from
  related party.
  On January 7, 2014 the Company issued 27,000 CPS to two investors
  for settlement of liability, these shares were valued at $210,000.
  During the period from January 9, 2014 to March 31, 2014, 38,665
  shares of CPS were converted into 19,386,464 common shares.
  28
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  15. STOCKHOLDERS
  '
  DEFICIT (continued)
  On or about April 11, 2014 a holder of Series A Preferred shares
  of the Company converted 125,000 Series A Preferred Stock into 66,875,000 restricted shares of the Company's common stock.
  The shares issued for the Series A Preferred stock represented 11.05% of the Company's shares issued and outstanding as of
  April 11, 2014.
  On or about May 28, 2014 the Company converted 5,000 Series A Preferred
  Stock into 2,289,220 shares of its common stock.
  Conversion Formula
  The CPS is convertible into Company's common stock in accordance
  with the following formula:
  Number of common shares to be issued upon conversion of CPS =
  Number of common stock outstanding on date of conversion x 0.000001
  x Number of preferred stock being converted.
  Due to there being no explicit limit to the number of shares to
  be delivered upon settlement of the above conversion option embedded in the CPS, the conversion feature is classified as derivative
  liabilities and recorded at fair value. At the time of this filing, the Company does not have sufficient issuable common shares
  remaining from its authorized common shares for any of the CPS holders to convert into common shares.
  Pursuant to ASC 815, "Derivatives and Hedging," the
  Company initially recognized the fair value of the embedded conversion feature of the CPS on date of issuance and was charged to
  operations. On September 30, 2014, the Company recorded a mark-to-market adjustment based on the fair value of the derivative liability
  on that date which resulted in a gain of $57,095,577. The fair value of the derivative liability was determined using the Black
  Scholes option pricing model with a quoted market price of $0.006, a conversion price of $0.0026, expected volatility of 178%,
  no expected dividends, an expected term of one year and a risk-free interest rate of 0.13%. As of September 30, 2014, the number
  of common shares that could be potentially issued to settle the conversion of the preferred stock is 372,921,913 common shares.
  The following table sets forth by level with the fair value hierarchy
  the Company's financial assets and liabilities measured at fair value on September 30, 2014.
  Level 1
  Level 2
  Level 3
  Total
  Assets
  None
  $
  —
  $
  —
  $
  —
  $
  —
  Liabilities
  Derivative Financial instruments
  $
  —
  $
  —
  $
  12,814,383
  $
  12,814,383
  The following table summarizes the derivative liabilities included
  in the condensed consolidated balance sheet at September 30, 2014:
  Balance at January 1, 2014
  $
  71,752,773
  Derivative liability related to new issuance and conversion, net
  1,842,812
  Change in Value of Historic Derivatives
  (57,095,577
  )
  Balance at September 30, 2014 (unaudited)
  $
  12,814,383
  29
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  15. STOCKHOLDERS
  '
  DEFICIT (continued)
  Common Stock
  On or about February 15, 2013 FMS converted 62,500 Preferred A shares
  into 20,437,331 shares of our common stock.
  On or about February 15, 2013, we issued 375,000 shares of our common stock to Kodiak
  Capital Group LLC worth $150,000 as part of the Kodiak Funding Agreement. The issuance was exempt from registration pursuant to
  Section 4(2) of the Securities Act of 1933, and the investor was either accredited or sophisticated and familiar with our operations.
  On or about February 15, 2013, we issued 160,715 shares of our common
  stock to Colin Manners (part of Kodiak Capital Group LLC) worth $64,286 as part of the Kodiak Funding Agreement. The issuance was
  exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, and the investor was either accredited or sophisticated
  and familiar with our operations.
  On March 18, 2013, the Company entered into a funding agreement
  for up to $3 million with Kodiak Capital Group LLC, a Newport Beach-based institutional investor. The Company has agreed to file
  a registration statement with the U.S. Securities & Exchange Commission ("SEC") covering the shares that may be
  issued to Kodiak under the terms of the common stock purchase agreement. As a result of the current market price for the Company's
  common stock, the Company intends to withdraw the registration statement filing.
  On or about April 1, 2013, the Company issued 1,712,999 shares to
  the owners of Going Green Limited (a UK company) to acquire 100% of the business. Due to the TRO the shares were not released by
  our transfer agent until June 24, 2013.
  On or about March 22, 2013, the Company issued 1,050,000 shares
  of its common stock to Metro-Electric PLC to secure a 30% investment in the Powabyke brand of Electric Bikes owned by Metro-Electric
  PLC.
  On or about May 9, 2013, the Company issued 1,500,000 shares of
  its common stock each to Gary Spaniak Sr. and Ron Davis to compensate them for Liberty Electric Cars Limited withdrawing from the
  Merger with ELCR in order to be acquired by GAC.
  On or about July 18, 2013, the Company issued 27,000,000 shares
  of its common stock to Carter Read of which 5,000,000 was in relation to the purchase of Newport Coachworks, Inc. and 22,000,000
  was in relation to Mr. Read securing purchase orders in excess of sixty (60) units.
  On or about July 29, 2013, the Company converted 42,152 Series A
  Preferred Stock into 16,156,335 shares of its common stock.
  On or about September 20, 2013, the Company issued 1,188,603 shares
  of its common stock. Of those shares, 1,046,618 were issued in connection with convertible debt, 27,939 were issued to a member
  of staff to retain their services, and 114,046 were issued in lieu of rent payments.
  On or about October 16, 2013, the Company issued 500,000 shares
  of its common stock in connection with advisory services provided.
  On or about November 8, 2013, the Company issued 625,461 shares
  of its common stock in connection with advisory services provided.
  On or about November 18, 2013, the Company issued 50,000 shares
  of its common stock in connection with advisory services provided.
  On or about December 11, 2013, the Company issued 7,700,000 shares
  of its common stock in connection with a 3(a)(10) arrangement with Ironridge.
  30
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  15. STOCKHOLDERS
  '
  DEFICIT (continued)
  On or about December 23, 2013, the Company issued 297,429 shares
  of its common stock to Redwood Management in connection with the repayment of convertible debt in the amount of $33,460.73.
  On or about December 31, 2013, the Company issued 238,095 shares
  of its common stock to Redwood Management in connection with the repayment of convertible debt in the amount of $25,000.
  During the three months ended March 31, 2014, the Company issued
  19,644,299 shares in connection with debt conversion valued at approximately $555,490, mainly related to the LEC debt that was
  assumed by Redwood.
  During the three months ended March 31, 2014, the Company issued
  32,051 shares for $5,000 in cash to unrelated party.
  During the three months ended March 31, 2014, the Company issued
  278,133 shares as additional interest and penalties valued at $24,038.
  During the three months ended March 31, 2014, the Company issued
  78,792,270 shares in connection with liability settlements valued at approximately $4,993,110, which included the Ironridge settlement
  agreement and other liabilities related to consultants and two officers for accrued salary.
  During the three months ended March 31, 2014, the Company issued
  872,569 shares in connection with services provided to the company by outside consultants valued at approximately $64,000.
  On or about April 2, 2014 the Company issued 1,200,000 shares of
  its common stock to JMJ Financial in connection with the repayment of convertible debt in the amount of $16,920.
  On or about April 2, 2014 the Company issued 4,821,925 shares
  of its common stock to LG Capital in connection with the repayment of convertible debt in the amount of $51,500 plus $2,746
  in accrued interest.
  On or about April 9, 2014 the Company issued 1,631,280 shares of
  its common stock to Auctus Private Equity Fund in connection with the repayment of convertible debt in the amount of $17,750 plus
  $1,646 in accrued interest.
  On or about April 9, 2014 the Company issued 1,600,000 shares of
  its common stock to JMJ Financial in connection with the repayment of convertible debt in the amount of $22,560.
  On or about April 11, 2014 the Company converted 125,000 Series
  A Preferred Stock into 66,875,000 shares of its common stock.
  On or about April 14, 2014, the Company issued 212,500 shares of
  common stock in exchange to investor Maurice Graham Oates at $0.0400 per share for a total of $8,500.
  On or about April 22, 2014 the Company issued 1,585,930 shares of
  its common stock to JMJ Financial in connection with the repayment of convertible debt in the amount of $22,742.23.
  On or about May 23, 2014 the Company issued 540,000 shares of its
  common stock to Gel Properties in connection with the repayment of convertible debt in the amount of $4,472.
  On or about May 28, 2014 the Company converted 5,000 Series A Preferred
  Stock into 2,289,220 shares of its common stock.
  On or about May 30, 2014 the Company issued 900,000 shares of its
  common stock to Gel Properties in connection with the repayment of convertible debt in the amount of $7,453.
  31
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  15. STOCKHOLDERS
  '
  DEFICIT (continued)
  On or about June 3, 2014 the Company issued 1,578,767 shares of
  its common stock to Gel Properties in connection with the repayment of convertible debt in the amount of $13,075.
  On or about June 5, 2014 the Company issued 4,262,943 shares of
  its common stock to Redwood Management in connection with the payment of accrued interest in the amount of $29,841.
  On or about June 6, 2014 the Company issued 3,474,337 shares
  of its common stock to LG Capital Funding in connection with the repayment of convertible debt in the amount of $26,058 plus
  $1,058 in accrued interest.
  On or about June 10, 2014 the Company issued 2,000,000 shares of
  its common stock to Gel Properties in connection with the repayment of convertible debt in the amount of $21,827.
  On or about June 12, 2014 the Company issued 1,700,000 shares of
  its common stock to JMJ Financial in connection with the repayment of convertible debt in the amount of $15,810.
  On or about June 17, 2014 the Company issued 290,753 shares of its
  common stock to Gel Properties in connection with the of repayment convertible debt in the amount of $3,173.
  On or about June 17, 2014 the Company issued 400,000 shares of its
  common stock to a creditor of former CFO Darren West. In exchange, the accrued salary due Darren West was reduced $17,000.
  On or about June 18, 2014 the Company issued 3,342,831 shares
  of its common stock to LG Capital Funding in connection with the repayment of convertible debt in the amount of $25,000 plus
  $71 in accrued interest.
  On or about June 18, 2014 the Company issued 2,200,000 shares of
  its common stock to Gel Properties in connection with the repayment of convertible debt in the amount of $19,361.
  On or about June 19, 2014 the Company issued 8,571,428 shares of
  its common stock to Redwood Fund III in connection with the repayment of convertible debt in the amount of $60,000.
  On or about June 24, 2014 the Company issued 2,000,000 shares of
  its common stock for advisory services rendered in 2013 at $0.014 per share.
  On or about June 27, 2014 the Company issued 7,462,686 shares of
  its common stock to Redwood Fund III in connection with the repayment of convertible debt in the amount of $40,000 plus $10,000
  in accrued interest.
  On or about June 27, 2014 the Company issued 640,736 shares of its
  common stock to Gel Properties in connection with the repayment of convertible debt in the amount of $5,639.
  On or about July 10, 2014, the Company issued 2,818,337 shares of
  its common stock to JMJ Financial in connection with the repayment of convertible debt in the amount of $24,012.
  On or about July 14, 2014, the Company issued 8,608,322 shares of
  its common stock to Redwood Fund II, LLC in connection with the repayment of convertible debt in the amount of $60,000.
  On or about July 15, 2014, the Company issued 2,500,000 shares of
  its common stock to GEL Properties, LLC in connection with the repayment of convertible debt in the amount of $ $20,459.
  On or about July 21, 2014, the Company issued 7,246,377 shares of
  its common stock to Redwood Fund II, LLC in connection with the repayment of convertible debt in the amount of $50,000, of which
  $10,000 was for accrued interest.
  32
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  15. STOCKHOLDERS
  '
  DEFICIT (continued)
  On or about July 29, 2014, the Company issued 554,820 shares of
  its common stock to GEL Properties, LLC in connection with the repayment of convertible debt in the amount of $ 4,541.
  On or about September 12, 2014, the Company issued 3,894,867 shares
  of its common stock to Black Mountain Equities in connection with the repayment of convertible debt in the amount of $30,653, of
  which $1,653 was for accrued interest.
  On or about September 23, 2014, the Company issued 912,569 shares
  of its common stock to Union Capital, LLC in connection with the repayment of convertible debt in the amount of $5,201, of which
  $202 was for accrued interest.
  On or about September 26, 2014, the Company issued 384,615 shares
  of its common stock to Blue Citi in connection with the repayment of convertible debt in the amount of $1,000.
  On or about September 30, 2014, the Company issued 5,044,110 shares
  of its common stock to Black Mountain Equities in connection with the repayment of convertible debt in the amount of $20,176, of
  which 1,176 was for accrued interest.
  16. CONTINGENCIES
  Our predecessor, Go Green USA, LLC ("Go Green") was
  a party defendant, along with other defendants in a civil action filed in Marshall County, West Virginia by Glen Dale Motor Co.
  and Tomsic Motor Co, Civil Action No. 11-C-104 H. This undefended and previously unknown action resulted in a default judgment
  and related judgment order in the amount of $3,717,615 with interest accruing at 7% per annum from and after February 13, 2012.
  There is no active effort to enforce this action against Go Green and we believe there are numerous defenses to the asserted judgment
  and any such enforcement effort. Moreover, the existence of the liability pre-existed our acquisition of Go Green and its existence
  was not disclosed as a part of the acquisition.
  Management has not accrued for this event in the financial statements
  as it is not determinable whether the Company is liable for this judgment. The Company expects that if efforts are made to enforce
  the judgment the expected loss could be from $0 to $3,717,615 not including additional accrued post-judgment interest.
  In December 2013 we entered in to an arrangement with Ironridge
  Global Equity IV, Ltd. under Section 3(a)(10) of the Securities Act of 1933 that was approved by a Superior Court Judge in Los
  Angeles, California pursuant to which we agreed to settle approximately $543,000 of trade debt claims purchased by Ironridge in
  exchange for the issuance by the Company of free-trading shares of our common stock under a calculation negotiated between Ironridge
  and the Company (the "Stipulation"). As of December 31, 2013, we had issued 7,700,000 free trading shares of our common
  stock to cover the Newport Coachworks liabilities assigned to Ironridge under the Stipulation The 3(a)(10) agreement specifies
  a $6m "calculation period" which determines the final number of shares to be issued to Ironridge in settlement of the
  loan they made to the Company by purchasing Company third party debt.
  After the initial issuance GAC issued a total of 27,000,000 additional
  free trading shares to Ironridge under the Stipulation formula. On or about March 28, 2014, however, Ironridge demanded GAC issue
  an additional 43,000,000 free-trading shares based on Ironridge's calculations under the Stipulation. Ironridge's calculation
  depends on its interpretation of certain clauses in the Stipulation and the allegation that GAC delayed the timely issuance of
  shares to which Ironridge was entitled and has thus increased the base amount of shares owed under the Stipulation. The initial
  Ironridge demand for 43,000,000 shares was increased to 55,000,000 additional shares (the "Additional Shares").
  On April 16, 2014, Ironridge brought an ex parte proceeding before
  Hon. Deirdre Hill, J. ("Judge Hill") to compel GAC to issue the Additional Shares under the Stipulation. GAC filed
  its answering papers in opposition to the Ironridge motion, and the Court held a hearing on May 14, 2014. At the conclusion of
  the hearing, the Court denied Ironridge's request for the issuance of the Additional Shares without prejudice. Since the
  date of the May 14 hearing Ironridge has not filed any other court papers, nor has GAC had any further communications from Ironridge.
  33
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  17. SUBSEQUENT EVENTS
  After the period ending September 30, 2014, we reached our limit
  of available and issuable shares (as calculated by the following formula: total shares authorized minus total shares issued and
  outstanding minus total share reserved for convertible note holders). As a result, we have no further shares to issue as a means
  of raising capital. Further, our Preferred A stockholders cannot convert their preferred shares for common shares and our convertible
  noteholders cannot convert their notes for common shares. As a result, we are in breach of our agreements with the Preferred A
  Shareholders and Convertible Note Holders. Although our Board of Directors has passed a resolution to increase the number of authorized
  common shares to 2,500,000,000 from 900,000,000, the amount of the increase in authorized shares to be requested of the Company's
  shareholders is subject to our ability to negotiate a resolution on the conversion of our Preferred A Stock to common shares and
  the settlement of our outstanding liabilities, including GAC and Newport Coachwork's payables and GAC's outstanding
  convertible notes. If a reasonable resolution is not achieved, the number of common shares needed to fully satisfy all parties
  could exceed 20 billion shares (based on all factors present on or about December 31, 2014). An increase to our authorized issuable
  share ceiling is subject to approval by our shareholders and will not be effective until the filing of an amendment to our Articles
  of Incorporation.
  On September 8, 2014, a consultant to the company serving as Controller
  and Senior Vice President, Global Corporate Finance, Donald Murray, submitted a notice of "Termination of Agreement with
  Cause" effective October 8, 2014. Causes referenced by Mr. Murray included breach of agreement by the Company, failure by
  the Company to pay agreed upon compensation, the Company's insolvency and the Company and CEO's failure to properly
  disclose material information. We have not refuted Mr. Murray's assertions. Penalties that we had previously agreed to in
  our agreement with Mr. Murray if he were to terminate his consulting agreement for cause included full and immediate vesting of
  6,000,000 shares and 2,000,000 options (with an average strike price of $0.05), payment of accrued and unpaid consulting fees,
  which totaled $23,333 as of October 8, 2014, and six months consulting fees equaling $75,000, together totaling $98,333. The cash
  fees, shares and options were to have been issued by us to Mr. Murray on or before October 8, 2014. However, Mr. Murray elected
  to defer receipt of the shares and options until January 2015. As of the date of this filing, only $2,500 of the unpaid, accrued
  and penalty fees has been paid to Mr. Murray, leaving the cash balance due to him by us at $95,833. Likewise, our obligation to
  issue the shares and options as described above remains outstanding as we do not have any available shares from which to issue
  shares owed to Mr. Murray.
  Effective October 8, 2014, upon the request of Carter Read, Board
  Director and President of Newport Coachworks, Ian Hobday resigned as our CEO and Company Director. Although Mr. Hobday had previously
  been awarded 150,000 of the Company's Preferred A Shares for his acceptance of a three year non-compete agreement, the agreement
  included a pro rata forfeiture provision if Mr. Hobday did not complete three years of service. As Mr. Hobday had not yet completed
  three years of service at the time of his resignation, he forfeited 50,000 of the Preferred A Shares he had been issued. Additionally,
  since Mr. Hobday worked with at least two companies outside the GAC organization, OEC International Limited and Footloose 4X4 Limited,
  both U.K. companies acquired by Liberty Electric Company, but not consolidated into the GAC group, during his service to us as
  CEO, we are investigating whether these activities breached Mr. Hobday's non-compete agreement, which could mean that Mr.
  Hobday would forfeit all of the Preferred A shares that had previously been issued to him.
  Prior to his departure, CEO Ian Hobday appointed Mr. Alan J. Bailey
  as our Chief Financial Officer, effective October 8, 2014.
  On October 10, 2014, our Board of Directors appointed Mr. Carter
  Read, President of Newport Coachworks, Inc., our remaining operating subsidiary, to the positions of interim President (our Principal
  Executive Officer) and Secretary of the Company.
  In December 2014, Mr. Read re-engaged Mr. Murray as a consultant
  to assist the Company.
  34
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  17. SUBSEQUENT EVENTS (continued)
  On May 18, 2015, we announced the appointment of Ben Rainwater as
  the Company's CEO and member of the Board and the appointment of Agnes Cha as Senior Vice President, Corporate Affairs and member
  of the Board. Under the terms of their respective agreements with us, both Mr. Rainwater and Ms. Cha were each issued 150,000 shares
  of our Series A Convertible Preferred Stock, subject to certain forfeiture and voting conditions, and are to receive 5,000,000
  shares of our common stock after the Company increases its authorized common stock sufficient to permit such issuance. Additionally,
  each was to receive $5,000 per week for any month in which Newport Coachworks, Inc. (NCI), the Company's wholly-owned subsidiary,
  produced an average of 3 buses per week in a calendar month and $7,500 per week for any month in which NCI produced an average
  of 4 or more buses per week in any calendar month. However, no compensation was to be paid, owed, earned or accrued for any month
  in which NCI does not average at least 3 buses per week. On or about November 31, 2015, both Mr. Rainwater and Ms. Cha each forfeited
  75,000 shares (collectively 150,000) when NCI failed to achieve an average production of three buses per week by the end of November
  2015. Further, neither has received any cash remuneration (nor accrued remuneration) as of the date of this filing, as neither
  the Company nor NCI have reached the thresholds under which cash remuneration would be awarded. Further, no shares of our common
  stock have been issued to either Mr. Rainwater or Ms. Cha as we have not yet, as of the date of this filing, increased our authorized
  limit for common stock issuance.
  On or about May 15, 2015, our subsidiary, Newport Coachworks, Inc.
  (NCI) ceased production and laid off its workers as it had depleted its working capital and no longer had the means to purchase
  parts nor pay its staff nor workers. As a result, NCI's revenue in the second quarter of 2015 and onwards will be minimal.
  On July 13, 2015, Carter Read resigned his
  positions as our interim President, Secretary and as a member of our Board of Directors. On July 20, 2015, Mr. Read resigned from
  his position with Newport Coachworks.
  On or about July 21, 2015, we became aware that the landlord of
  Newport Coachworks' warehouse and manufacturing facility located on Wilson Street in Riverside, California, had locked our
  personnel out of the facility due to failure by NCI to pay the rent. At the time we were locked out of the facility, certain assets
  of Newport Coachworks remained inside. We also became aware that the facility may have been leased to a different shuttle bus manufacturing
  company, unrelated to us. We believed that at some point prior to Mr. Read's departure, Mr. Read may have arranged for NCI
  to be released from the Wilson Street lease, which involved a lease being issued to a new tenant introduced by Mr. Read. As part
  of this transaction, we believed that assets belonging to NCI may have been surrendered to the landlord, and/or sold or assigned
  to the new tenant to compensate the landlord for amounts owed, and possibly, to release Mr. Read from a personal guarantee he had
  issued when the lease was signed originally. We began negotiating with the landlord of the Wilson Street facility, as well as the
  new tenant, regarding the facility and Newport Coachworks' assets. These efforts led to the formation of an Outsourcing Agreement
  with Executive Bus (see below).
  On August 12, 2015, our Board of Directors
  appointed Fred Luke as our President and Secretary. Mr. Luke's appointment to President and Secretary did not include an
  assignment of remuneration. As of the date of this filing, Mr. Luke has received a total of $10,000 in remuneration for his services
  as President.
  On August 12, 2015, our Board of Directors
  appointed Agnes Cha as our Treasurer. Ms. Cha's appointment to Treasurer did not include remuneration. Ms. Cha has not received
  any cash nor equity remuneration (nor accrued remuneration) for this appointment as of the date of this filing.
  On or about August 13, 2015, our Board began a formal investigation
  into the circumstances leading up to the alleged surrender of assets and transfer of the NCI lease of the Wilson Street facility
  by Mr. Read prior to his departure.
  35
  Table of Contents
  GREEN AUTOMOTIVE COMPANY AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
  STATEMENTS
  (UNAUDITED)
  17. SUBSEQUENT EVENTS (continued)
  On September 30, 2015, we signed an Outsourcing Agreement (Outsourcing
  Agreement) with Executive Bus Builders Inc. (Executive Bus).
  Executive Bus is an affiliate
  of Executive Coach Builders Inc. based in Springfield, Missouri (Executive Coach).
  Executive Coach is known as one of the
  of the top SUV limousine manufacturers in the U.S., and is one of the largest limousine builders in the world. The Outsourcing
  Agreement eliminates our remaining existing manufacturing overhead in the production of buses and significantly reduces our related
  general and administrative costs, while still allowing us to participate in the manufacturing of shuttle buses. Additionally, this
  allows us to refocus on our primary goal of manufacturing all-electric powered buses as well as the conversion of other mass transit
  vehicles.
  Pursuant to the Outsourcing Agreement, Executive Bus agreed to 1)
  manufacture buses for our clients based in California, and to build customized buses, which are to be converted into all-electric
  vehicles and convert other mass transit vehicles for our clients into all-electric drive vehicles, 2) purchase certain of the tool
  and die equipment, and certain molds located in the Wilson Avenue facility from us for $100,000, 3) to pay us approximately $25,000
  for the first five buses manufactured for the our customers by Executive Bus, and 4) to assume all of the obligations and responsibilities
  as a sub-lessor under NCI's original lease for the duration of the original lease.
  We believe that going forward the net revenue to us per bus sale
  through Executive Bus will be approximately the same as the net earnings we had projected to generate once NCI had reached scale
  (without the administrative and operative burden). As of this filing, NCI remains non-operational and does not have any employees.
  Mr. Alan J. Bailey, our Chief Financial Officer (CFO), tendered
  his resignation effective November 2, 2015. During his service as our CFO, Mr. Baily did not receive any compensation, nor is any
  compensation owed.
  On November 4, 2015, a default arbitration judgement against us
  was awarded to Typenex Co-Investment, LLC, a creditor of the Company in the amount of $679,894 for damages, with 22% interest accruing
  commencing as of October 19, 2015. We intend to challenge this award based on Typenex's failure to properly serve notice;
  and to negotiate a settlement more favorable to us.
  36
  Table of Contents
  ITEM 2. Management's Discussion and
  Analysis of Financial Condition and Results of Operations
  Forward-Looking Statements
  This Quarterly Report on Form 10-Q of Green Automotive Company for
  the period ended September 30, 2014 contains forward-looking statements, principally in this Section and in "Business."
  Generally, you can identify these statements because they use words like "anticipates," "believes," "expects,"
  "future," "intends," "plans" and similar terms. These statements reflect only our current expectations.
  Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee
  their accuracy and actual results may differ materially from those we anticipated due to a number of uncertainties, many of which
  are unforeseen, including, among others, the risks we face as described in this filing. You should not place undue reliance on
  these forward-looking statements which apply only as of the date of this annual report. To the extent that such statements are
  not recitations of historical fact, such statements constitute forward-looking statements that, by definition, involve risks and
  uncertainties. In any forward-looking statement where we express an expectation or belief as to future results or events, such
  expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the
  statement of expectation of belief will be accomplished.
  We believe it is important to communicate our expectations to our
  investors. There may be events in the future; however, that we are unable to predict accurately or over which we have no control.
  The risk factors listed in this filing, as well as any cautionary language in this annual report, provide examples of risks, uncertainties
  and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements.
  Factors that could cause actual results or events to differ materially from those anticipated, include, but are not limited to:
  our ability to successfully obtain financing for product acquisition; changes in product strategies; general economic, financial
  and business conditions; changes in and compliance with governmental regulations; changes in various tax laws; and the availability
  of key management and other personnel.
  Overview
  We are involved in the development, manufacturing and sale of diesel,
  gas, CNG and electric buses. We plan to move forward with the production of all-electric buses, as well as begin converting other
  mass transit vehicles into electric powered vehicles. We expect this to be the core focus of our business activities going forward.
  We recently introduced a prototype electric bus, which we named the E-Patriot line. The E-Patriot seats 15-23 passengers, depending
  on configuration and is expected to have a hundred mile range in-between charges when it is ready for market.
  History and Development of the Company
  We are a corporation originally organized under the laws of the
  State of Delaware in 1996, but re-incorporated in Nevada effective June 3, 2011. We formerly operated under the name GANAS Corp.
  ("GANAS"). Prior to November 2009, GANAS' objective was to obtain through acquisition and/or merger transactions,
  assets, which could benefit our shareholders. Effective November 4, 2009, GANAS acquired Go Green USA LLC, a Nevada limited liability
  company organized on April 28, 2009 ("Go"), in a share exchange transaction pursuant to which newly issued shares of
  GANAS common stock were issued in exchange for all of the issued and outstanding membership interests of Go (the "Go Merger").
  The Go Merger resulted in GANAS issuing 1,436,202.25 shares of its common stock with par value $0.001 for each 1% membership interest
  in Go, following which GANAS changed its name to Green Automotive Company Corporation. Effective September 30, 2011, we effected
  a Change of Domicile, re-incorporating in Nevada and simplifying our name to Green Automotive Company, among other things (the
  "Re-Incorporation").
  In August 2009, prior to the Go Merger, Go entered into a Memorandum
  of Understanding with a subsidiary of  Zotye Holding Group, a Chinese automotive manufacturer (collectively, "Zotye")
  which, on January 29, 2010, was reduced to a definitive Exclusive Agreement of Distribution and Service between the Issuer and
  Zotye (the "Zotye Agreement"). On July 20, 2010, the Zotye Agreement was amended and restated "between the Issuer
  and Yongkang Titan Imp. & Exp. Co., Ltd., a reported subsidiary of Zotye," and then on December 21, 2010, the Zotye Agreement
  was further amended and restated between the Issuer and Zhejiang Titan Imp. & Exp. Co., Ltd., another reported Zotye subsidiary.
  37
  Table of Contents
  On January 29, 2010, following the execution of the Zotye Agreement
  we changed our primary SIC Code to 5012 for automobiles.
  Following the Go Merger, and throughout the 2010 and 2011 fiscal
  years, we devoted all of our resources to the homologation of the all-electric Zotye Sport Utility Vehicle ("SUV")
  with the intent to import and distribute the SUV throughout the U.S. pursuant to the Zotye Agreement. However, after taking several
  SUVs through the required tests to comply with the standard safety benchmarks required by the U.S. Department of Transportation
  ("DOT") and the U.S. Federal Motor Vehicle Safety Standards ("FMVSS"), we elected to modify our business
  plan so as to not be dependent upon one supplier, one product and only one segment of the new all-electric automotive industry,
  and instead to be involved in two areas of the industry: the import, testing and distribution of foreign and domestic manufactured
  eco- friendly passenger vehicles ("Passenger Vehicles"), Municipal Transit Buses, School Buses, Limousines and Airport
  and Hotel Shuttle Vans (collectively, "Mass-Transit Vehicles"), and the conversion of conventional internal combustion
  engine driven vehicles into all-electric powered vehicles ("Conversion Vehicles"), with the medium term goal of becoming
  one of the first manufacturers of all-electric Mass-Transit Vehicles and Conversion Vehicles.
  As an enticement to enter into the Zotye agreement, we issued Gao
  Xiang, a senior member of the Zotye management team, 5,000,000 of our common stock. Since the Zotye agreement was never finalized,
  we requested the return of these shares from Gao Xiang. Despite our best efforts to procure the return of the issued share certificate,
  Goa Xiang has not relinquished the share certificate. To ensure the shares cannot be traded, we placed an administrative stop on
  the certificate. This stop remains in place as of the date of this filing.
  On September 1, 2011, Green Automotive Company entered into a Stock
  Purchase Agreement and Escrow Agreement with Mark E. Crone ("Crone") and Bosch Equities, L.P. ("Bosch"),
  under which we purchased 100% of the outstanding equity of Matter of Time I Co., a Nevada corporation ("MOT"), and
  extinguished a repayment obligation of MOT totaling $6,000, all in exchange for $30,000.
  On February 10, 2012, we entered into a Merger Agreement and Plan
  of Reorganization with Matter of Time I Co., a Nevada corporation ("MOT") (the "MOT Agreement"). The MOT
  Agreement provided that, at the closing of the transaction contemplated by the MOT Agreement, MOT would dissolve into and became
  a part of Green Automotive Company, with Green Automotive Company being the surviving corporation and assuming MOT's status
  as a reporting issuer under the Securities Exchange Act of 1934, as amended. On December 14, 2012 the transactions contemplated
  by the MOT Agreement closed (the "Closing").  As a result of the Closing, MOT was merged out of existence and
  Green Automotive Company became a reporting issuer under the Securities Exchange Act of 1934, as amended.
  On June 28, 2012, we entered into a Stock Exchange Agreement (the
  "Liberty Agreement") with Liberty Electric Cars Limited., an England and Wales private company limited ("LEC"),
  and its wholly-owned subsidiary LEC 2 Limited, an England and Wales private company limited ("LEC2" and together with
  LEC, the "LEC Entities"), under which our wholly-owned subsidiary, Liberty Automotive Group, Inc. (formerly GAC EV
  Motors Inc.), a Nevada corporation ("LAG") agreed to purchase 100% of the issued and outstanding securities of LEC
  (the "LEC Shares"), that owns 100% of the issued and outstanding securities of LEC2 (the "LEC2 Shares")
  (collectively the "LEC Securities") in exchange for the transfer of Thirty Nine Million Seven Hundred Forty Two Thousand
  One Hundred Seventy Eight (39,742,178) shares of our common stock held by LAG to the LEC Shareholders. These shares represented
  approximately 8.19% of our outstanding voting control. We also issued to Mr. West and Mr. Hobday, the executives of LEC, a total
  of 300,000 shares of our Series A Preferred Stock (subject to forfeiture on a pro rata basis over a three year period) in exchange
  for the non-competition provisions in their independent contractor agreements. This transaction closed on July 23, 2012.
  38
  Table of Contents
  As a result of the Liberty Transaction, we acquired LEC, a company
  that designed and developed electric vehicle drive solutions for use in its own converted vehicles and for sale to original equipment
  manufacturers (OEMs) for incorporation into their production. LEC's engineers contributed to the invention of innovative
  EV drive train technologies that was believed to be employable in a wide variety of vehicle platforms. LEC was also a contributing
  member of a number of advanced research programs for developing next generation electric vehicle ("EV") solutions.
  These programs included the "Deliver" project where LEC collaborated with "tier one" automotive companies
  to develop a pure electric commercial vehicle, and the "Motore" project in which LEC collaborated with "tier
  one" automotive companies and universities to develop a "rare earth" free electric motor technology. Additionally,
  LEC created after sales support for EVs including the Modec truck and the G-Wiz car, by developing a comprehensive aftermarket
  maintenance program throughout Europe for its customers' electric trucks and cars.
  Due to its experience in EV technologies and in servicing EVs, LEC
  had an agreement with a large U.S. truck manufacturer for the on-going support of electric vehicles run by its key clients in Europe.
  LEC continued to take care of all warranty support when required by these customers, all of whom run fleets of electric commercial
  vehicles across Europe. This truck manufacturer's customers include major companies such as FedEx, UPS and Veolia, who are
  using the first "ground up" electric trucks known as the "Modec" that were launched approximately five
  years ago for the purpose of making pollution free deliveries in urban areas.
  Pursuant to the Liberty Agreement, we also issued to GAC Automotive
  Services, Inc., a Nevada corporation and one of our wholly-owned subsidiaries ("GAC Auto") Ten Million (10,000,000)
  shares of Series B Convertible Preferred Stock (the "Series B Shares"). The issuance of the Series B shares to GAC
  Auto was not part of the purchase price of the LEC Entities and was not compensation to the LEC Entities or LEC Shareholders, but
  was reserved for issuance to shareholders of certain entities that LEC and/or LEC2 have been in negotiations with at the time of
  execution of the Liberty Agreement if those entities and/or assets were purchased by us or our subsidiaries. Subsequently, instead
  of issuing the B shares, we agreed to issue 59,000,000 GAC shares to the former shareholders for LEC's acquisitions of OEC
  International Limited (OEC) and Footloose 4x4 Limited (Footloose). However, the 59,000,000 shares were never issued and we have
  never consolidated OEC nor Footloose into our financial statements. LEC and its subsidiaries, excluding Footloose, ceased operations
  on or about August 15, 2014, and went into liquidation under a voluntary liquidation in accordance with Section 98 of the United
  Kingdom's Insolvency Act of 1986. LEC began to wind down Footloose in late 2013. A formal petition to liquidate Footloose
  was presented on July 3, 2014 and a formal Resolution for Voluntary Winding-up Footloose was granted August 27, 2014. Legal representation
  of the Footloose liquidation was facilitated by Everys Solicitors, Taunton, United Kingdom.
  To date, all of the Series B Shares are still held by GAC Auto.
  For reporting purposes, the Series B Preferred Stock is eliminated upon consolidation.
  On October 12, 2012, we entered into an Acquisition and Stock Exchange
  Agreement (the "NCI Agreement") with Newport Coachworks, Inc., a California corporation ("NCI"), under
  which we agreed to purchase 100% of the issued and outstanding securities of NCI (the "NCI Shares") from Mr. Carter
  Read, NCI's sole shareholder, in exchange for the transfer of Five Million (5,000,000) shares of our common stock due at
  the closing of the transaction (the "GAC Closing Shares"), and up to an additional Twenty Two Million (22,000,000)
  shares of our common stock (the "GAC Additional Shares" and together with the GACR Closing Shares, the "GAC Shares")
  to vest as follows:  upon NCI obtaining bona fide, binding purchase orders, with a cash down payment (or provides a truck
  chassis in lieu of cash deposit), standard in the industry, to NCI from third party purchasers requiring NCI to manufacturer Sixty
  (60) buses with diesel or compressed natural gas engines at NCI's manufacturing facility (each a "Qualified Purchase
  Order") within the first twelve (12) months following the payment of one-half of the initial forecasted funding of $500,000.
  This transaction closed on October 12, 2012. On July 18, 2013 following Board approval, we issued to Mr. Read all of the GAC Additional
  Shares as a consequence of receiving orders for 232 buses from Don Brown Bus Sales ("Don Brown") to be delivered over
  a 2-year period. The GAC Shares, when issued on or about July 18, 2013, represented approximately 6.8% of our then outstanding
  common stock and based on our share price. At the close of trading on the day of issuance the stock's value was $6,480,000.
  The terms of the Don Brown contract were subsequently revised during the reporting period ending September 30, 2014, with NCI
  39
  Table of Contents
  regaining the right to sell buses inside a region formerly assigned
  exclusively to Don Brown, and Don Brown being released from its commitment to purchase 232 buses. As of September 30, 2014, Don
  Brown had completed net purchases of approximately 33 buses from NCI.
  On or about October 29, 2012, Liberty Electric Cars (LEC) agreed
  to acquire a 30% interest in Powabyke EV Limited from Metroelectric PLC (Metroelectric) of Stanstead Abbotts, Hertfordshire, United
  Kingdom under a Purchase and Management Agreement. The consideration paid was 1,050,000 restricted ordinary Green Automotive shares
  with an estimated value of £300,000 or $480,870. On or about March 22, 2013, we issued the shares to Metroelectric, with
  a market value of $335,895 on the day of issuance. Subsequently, on or about July 22, 2014, we agreed to sell our interest to Flare
  Capital Limited under a share purchase agreement signed August 21, 2014 for £15,000 ($24,344.50 in U.S. dollars on the day
  funds were received on September 2, 2014).
  On January 31, 2013, the Company signed a binding agreement to buy
  U.K.-based electric vehicle distributor Going Green Limited ("Going Green") which operated under the brand name "GoinGreen."
  Founded in 2002, it sold over 1,400 G-Wiz vehicles, an electric vehicle manufactured in India by the Indo-Reva Electric Car Company.
  The acquisition was completed on or about April 1, 2013 when 1,562,498 shares of GAC common stock were authorized in exchange for
  100% of the issued and outstanding securities of Going Green Limited and 150,501 shares of GAC common stock for issuance to former
  creditors of Going Green. Due to a temporary restraining order in an unrelated litigation in Utah by us against a former stockholder
  the shares were not released by our transfer agent until June 24, 2013. Ian Hobday, our CEO, and Daren West, our former CFO, served
  as directors of Going Green prior to the acquisition.
  On or about December 12, 2013, we entered into an agreement with
  World Energy Asset Management Inc. (WEAM), an oil and gas company that reportedly develops both onshore and offshore oil and gas
  assets, wherein we purchased 1,000,000 WEAM shares. In conjunction with this transaction, we issued a $400,000 convertible note
  to WEAM (the "WEAM Note"), $200,000 of which was consideration for the purchase of the shares, with the remaining $200,000
  to be lent to us by WEAM at an unstated future date. Management at the time believed that WEAM would be going public shortly and
  that this construct would effectively give GAC substantial increased value as WEAM was expected to trade at a significantly higher
  value. WEAM was also in discussions with us at that time to drill a well on the Blackhawk property, a company with whom we would
  enter into an acquisition agreement the following month (see below), to provide us with revenues from oil production. The Blackhawk
  acquisition did not occur, nor did drilling on the Blackhawk property. In the quarter ending June 30, 2014 we impaired 100% of
  WEAM share's value. However, the impairment was mistakenly recorded as a loss from other income, which was corrected in the
  period ending September 30, 2014. On June 2, 2014, World Financial Capital Holdings, Inc. (WFC) caused the WEAM Note to be assigned
  to WFC. Principals of WFC and WEAM are related. As of the period ending September 30, 2014, the additional $200,000 that was to
  be lent to us has not been received and the $200,000 note to WFC remains outstanding.
  On or about January 9, 2014 we acquired 21.63% of Viridian Motor
  Corporation (VMC), a US-based electric truck manufacturer. VMC was a company devoted to advancing twenty-first century transportation
  technology using alternative fuels and propulsion systems to build fully electric, light duty trucks, which included their own
  electric drive train and unique battery packs. In February 2014, we acquired an additional 1.5% of the company. On January 6, 2014,
  we issued 1,292,270 shares to Burton Neil and Dale Nyhus for an obligation of $173,060 related to the acquisition. The value of
  the issued shares on the day of issuance was $206,763. Other than a recording of the stock issuance, the acquisition was not recorded
  in our books until the period ending September 30, 2014. Additionally, for the period ending September 30, 2014, we impaired the
  value of the investment in VMC by 100%.
  On February 17, 2014, we entered into an Acquisition and Stock Exchange
  Agreement (the "Blackhawk Agreement") with Blackhawk Manufacturing, Inc., a California corporation ("Blackhawk"),
  Sanders, Larios, Larios & Luevanos LLC, a California limited liability company ("SLLL"), Alan Servicios S de R.I.
  de C.V., a Mexican corporation ("Servicios"), Lalusa Investments, a Mexican corporation ("Lalusa"), and
  Shelmado Transporte, a Mexican corporation ("Shelmado") (Blackhawk, SLLL, Servicos, Lalusa and Shelmado together are
  referred to herein as the "BMI Entities"), and the individuals identified on the signature page of the Blackhawk Agreement
  as shareholders of the BMI Entities (the "BMI Entity Shareholders"), under which we agreed to purchase 100% of the
  40
  Table of Contents
  issued and outstanding securities of the BMI Entities (the "BMI
  Shares"), in exchange for that number of shares of our common stock that was to have a fair market value of Six Million Dollars
  ($6,000,000), with the fair market value being the price per share as of February 15, 2014, which was $0.05 cents per share and
  therefore equaled approximately 120,000,000 shares of our common stock (the "Purchase Price").
  Subsequent to the closing, but prior to the issuance of the Blackhawk
  Shares to the BMI Entity Shareholders, certain of the BMI Entity Shareholders met with our management and presented information
  about Blackhawk's financial condition that was materially different from the financial representations and warranties in
  the Blackhawk Agreement. These related to, among other matters, Blackhawk's operating income for the year ended December
  31, 2013, its projections for calendar year 2014, its secured and unsecured debt and trade payables, and other issues concerning
  its cash flow, environmental concerns and its ability to operate the ongoing business. As a result of these disclosures, on May
  21, 2014 we informed Blackhawk that we rescinded the Blackhawk Agreement and all related transaction documents, effective immediately,
  and all such agreements were terminated. We did not issue and shall not issue the 120 million shares of our common stock for the
  Purchase Price. We have reserved all other rights and remedies we may have in connection with these former transactions.
  On or about September 9, 2103, we entered into an acquisition and
  stock exchange agreement to purchase Transhock Distribution Limited ("Transhock") and AutoParts Warehouse Limited ("AutoParts"),
  incorporated in England and Wales, U.K. for cash and stock. Terms of the agreement were modified in December 2013 and again on
  February 25, 2014. Terms include twenty six million (26,000,000) shares of our common stock to be issued to Derek Neale and David
  Peter Davies, each 50% owners of Transhock and AutoParts (the "Closing Shares"). Neale and Davies are to each receive
  three million five hundred thousand (3,500,000) GAC shares upon the two (2) year anniversary, and another three million five hundred
  thousand (3,500,000) GAC shares each at three (3) years anniversary of the closing, conditionally, if they are still actively engaged
  with the business operations of Transhock and Autoparts (the "Earnout Shares"). Additionally, Neale and Davies are
  to each be issued options to purchase 500,000 shares of GAC shares at an exercise price equal to the market price on the day the
  transaction is closed (the "Closing Options"). Cash consideration:  Davies and Neale are to receive a Directors
  and Spouse Salary and Dividend package of seven thousand one hundred twenty five pounds sterling (£7,125) each to be paid
  up and until the GAC shares can be freely traded on either NASDAQ or the Dow Jones Indexes whereupon the package will be reviewed
  in the light of business performance and the number of hours the directors will commit to working in the business going forward.
  Both Neale and Davies are to have seats on to the Liberty Electric Company Board of Directors. An additional condition of closing
  is that GAC must meet the requirement to reduce certain Transhock liabilities in relation to (a) a government business expansion
  loan which needs to be paid down in the event of a sale and (b) a lower level of invoice financing available in the event
  the personal guarantees of the two owners are removed. The total amount of cash required is approximately $750,000. In
  the event the acquisition and stock exchange agreement is not closed, Neale and Davies are to receive the 26,000,000 Closing Shares.
  The closing was to take place on April 25, 2014. On or about June 17, 2014, we signed a Deed of Addendum with Neale and Davies
  to extend the agreement until July 31, 2014. On or about July 3, 2014, we sought and gained a verbal commitment to delay the acquisition
  of Transhock and AutoParts, until later in 2014, subject to (a) completion of the disposition of our U.K. subsidiaries, (b) the
  determination of the amount of funding required upon closing, the owners having renegotiated their invoice financing terms,
  and (c) the availability of funds to close the deal. As of the date of this filing, we are unaware of any further material discussions
  or modifications to this transaction.
  On July 31, 2014, our Board of Directors passed a resolution to
  increase the number of authorized common shares to two billion five hundred million (2,500,000,000) from nine hundred million (900,000,000).
  The increase is subject to approval by our shareholders and will not be effective until the filing of an amendment to our Articles
  of Incorporation. The amount of the increase in authorized shares to be requested of the Company's shareholders is subject
  to our ability to negotiate, if possible, a favorable resolution on the conversion of Preferred A Stock to common shares and the
  settlement of outstanding liabilities, including GAC and Newport Coachwork's payables and GAC's outstanding convertible
  notes. If a favorable resolution is not achieved, the number of common shares needed to fully satisfy all parties could exceed
  20 billion (based on conditions in effect as of December 31, 2014).
  41
  Table of Contents
  On or about August 15, 2014, the Company's subsidiaries based
  in the United Kingdom, including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC's wholly
  owned subsidiaries, ceased business operations. On or about August 26, 2014, we arranged for the disposition of the assets and
  liabilities of these subsidiaries under the circumstances and terms and conditions described in PART II – OTHER INFORMATION,
  Item 5, below.
  Overview of Luxury Shuttle and Electric Vehicle and Bus Market
  The luxury shuttle bus market represents the top 20% of the overall
  market for shuttle buses. Typical customers include Five Star hotels and resorts; luxury touring companies; limo buses and other
  high end transport providers. The vehicles in this sector range in capacity from 15 through 52 passengers, and can be powered by
  Gas, Diesel, CNG, and as a recent development, by both electric and hydrogen fuel cells. The buses are constructed on a variety
  of major OEM chassis (including but not limited to Ford, Freightliner, GM, Mercedes and Navistar). Sales opportunities for these
  bus types exist not only in America, but also in Canada and a number of export markets, including South America, Caribbean, Middle
  East and South Africa). Typically the buses feature a high number of operator specified options and additions, ranging from large
  screen TVs to bars, bathrooms and luxury seating. Limo buses, which have begun replacing the more traditional stretched limo, feature
  even more extravagant interiors, including DJ-style music systems, multiple bar installations and bench style seating. Limo buses
  currently account for 10% of the luxury shuttle bus segment but this is growing as traditional stretched limos are replaced.
  The market for electric vehicles is expected to grow rapidly, driven
  primarily by government incentives and the fuel costs for traditional vehicles. With major OEMs now launching electric vehicles
  (EV), there is a growing opinion that EVs could eventually replace traditional fossil fuel vehicles. Industry analysts Frost and
  Sullivan's 2010 research stated that approximately 20% of the market for EVs will be satisfied by new entrants rather than
  traditional automotive OEMs. Electric cars in all categories are forecasted to reach sales of 3.8m units annually by 2020 (Pike
  Research 2012), with electric trucks forecasted to reach annual sales of 100,000 units globally (Pike Research 2011) (excluding
  buses and coaches). The development of infrastructure for charging EVs lags the introduction of vehicles, and as such, the main
  initial market will be for EVs that regularly drive the same or similar routes (delivery vehicles, school buses, shuttle buses
  etc.). These vehicles, which return to base regularly, and can therefore be charged easily, represent the vanguard of EV adoption. Adoption
  of EVs in the business-to-business segment is driven by a number of factors: pollution and emission reduction; lower fuel costs;
  legislation; incentives; health issues; driver satisfaction; noise reduction and total cost of ownership benefits.
  42
  Table of Contents
  Results of Operations for the Three Months Ended September 30,
  2014 and September 30, 2013
  Summary of Results of Operations
  (Unaudited)
  For the three months ended
  September 30,
  2014
  2013
  (restated)
  Revenues
  $
  1,662,918
  $
  644,624
  Costs of goods sold
  1,281,116
  483,938
  Gross profit
  381,802
  160,686
  Operating expenses
  Depreciation and amortization
  38,697
  18,384
  Impairment of assets
  373,060
  —
  General and administrative
  341,361
  5,166,470
  753,118
  5,197,370
  Operational income/ (loss)
  (371,316
  )
  (5,036,684
  )
  Other income/(expenses)
  Change in fair value of derivative liability
  (361,135
  )
  (18,766,197
  )
  Stock issued for settlements
  —
  (1,237,200
  )
  Gain (loss) on settlement of debt
  —
  —
  Loss on conversion of preferred shares
  —
  (16,116
  )
  Other income/(expense)
  660,296
  —
  Interest income/(expense)
  194,581
  (28,929
  )
  493,742
  (20,048,442
  )
  Income/(Loss) from continuing operations
  122,427
  (25,085,126
  )
  Income/(Loss) from discontinued operations
  (4,347,499
  )
  (325,262
  )
  Earnings before income tax
  (4,225,072
  )
  (25,410,387
  )
  Income taxes
  —
  —
  Net income
  $
  (4,225,072
  )
  $
  (25,410,387
  )
  43
  Table of Contents
  On or about August 15, 2014, our United Kingdom based subsidiaries,
  including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC's wholly owned subsidiaries
  (collectively, the U.K. Companies), ceased business operations. As a result, we are reporting the operational results of the U.K.
  Companies under discontinued operations. Operational results under discontinued operations includes a 100% impairment of all U.K.
  Companies' assets, a full write down of the value of each company's equity (or deficit), and the net earnings or losses
  incurred by each. We will continue to carry each company's liabilities on our books under liabilities from discontinued operations
  until such time as the voluntary liquidations currently underway are finalized. Additionally, comparative periods, within our financial
  statements and accompanying notes, have been reclassified to show financial data for our former U.K. Companies under discontinued
  operations. Such reclassifications have no impact on our previously reported net losses.
  Operating Loss; Net Income
  Our net loss was $4,225,072 for the three months ended September
  30, 2014 compared to a net loss of $25,410,387 for the three months ended September 30, 2013. The net loss for the three months
  ended September 30, 2014 was primarily due to a loss from discontinuing operations of $4,347,499. Our net income from continuing
  operations for the three months ended September 30, 2014 was $122,427. The net loss for the three months ended September 30, 2013
  was the result of $5,036,684 in operating losses from continuing operations (reclassified) and an $18,766,197 non-cash expense
  due to the change in the fair value of derivative liabilities for the period primarily related to our convertible preferred stock,
  as well as our convertible notes and warrants. The reclassification of financial data for our former U.K. Companies as discontinued
  operations had no impact on our previously reported net losses.
  Revenue
  Our revenue from the three months ended September 30, 2014 was $1,662,918
  compared to $644,624 for the three months ended September 30, 2013 (reclassified). Our revenue was derived from the operations
  of our subsidiary Newport Coachworks, Inc. and no longer includes the results of our subsidiaries Liberty Electric Cars Limited
  (LEC) and LEC's subsidiaries, and Going Green Limited, the results of which are recorded as a loss from discontinued operations
  for the three months ended September 30, 2014. The growth in Newport Coachwork's revenue for the three months ended September
  30, 2014 was due to an increase in bus sales.
  Cost of Goods Sold
  Our cost of goods sold for the three months ended September 30,
  2014 were $1,281,116 compared to $483,938 for the same period in 2013 (reclassified). The cost of goods sold for the three months
  ended September 30, 2014 and September 30, 2013 corresponds with the revenues generated from the operations of our subsidiary Newport
  Coachworks, Inc.
  Depreciation and Amortization
  Expenses related to depreciation and amortization were $38,697 for
  the three months ended September 30, 2014, compared to $18,384 for the three months ended September 30, 2013 (reclassified). The
  increase was attributable to investments in plant and equipment related to the continuing growth of Newport Coachworks.
  General and Administrative
  Expenses related to general and administrative were $331,361 for
  the three months ended September 30, 2014, compared to $5,166,470 for the three months ended September 30, 2013. For the three
  months ended September 30, 2013, $4,739,716 of the expense was for stock based compensation. Expenses related to stock based compensation
  were $0 for the three months ended September 30, 2014.
  44
  Table of Contents
  Impairment of Assets
  Expenses related to Asset Impairment were $373,060 for the three
  months ended September 30, 2014, compared to $0 for the three months ended September 30, 2013. This expense includes a 100%
  impairment of our $173,060 investment in Viridian Motors and 100% of our $200,000 investment in World Energy Asset Management.
  Change in Fair Value of Derivative Liability
  During the three months ended September 30, 2014, we had a change
  in fair value of derivative liability of $361,135 compared to a loss of $18,766,197 for the three months ended September 30, 2013,
  with the significant difference primarily related to the change in the fair value of our common stock, and the issuance of additional
  convertible debt and preferred stock during the three months ended September 30, 2014.
  Loss on Settlement of Debt
  During the three months ended September 30, 2014, we had a loss
  on settlement of debt of $0 compared to a gain of $0 for the three months ended September 30, 2013.
  Interest Expense
  During the three months ended September 30, 2014, we had interest
  income of $194,581, compared to an interest expense of $28,929 for the three months ended September 30, 2013 (reclassified). The
  main interest expense in 2014 stemmed from the amortization and reversal of debt discount related to convertible debt issued and
  converted.
  Loss from Discontinued Operations
  On or about August 15, 2014, our United Kingdom based subsidiaries,
  including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC's wholly owned subsidiaries,
  (collectively, the U.K. Companies) ceased business operations. As a result, we are reporting the operational results of these subsidiaries
  under discontinued operations for the three month period ending September 30, 2014. During the three months ended September 30,
  2014, we incurred net losses from discontinued operations of $4,347,499. These losses are attributable to a 100% impairment of
  all UK-based subsidiary companies' assets, a full write off of the value of each companies' equity (or deficit), and
  the net earnings or losses incurred by each. We will continue carrying each company's liabilities on our books until such
  time as the voluntary liquidation currently underway is finalized. For the three months ended September 30, 2013, we reclassified
  the operating results for the U.K. Companies under discontinued operations, which was a net loss of $325,262.
  45
  Table of Contents
  Results of Operations for the Nine Months Ended September 30,
  2014 and September 30, 2013
  Summary of Results of Operations
  (Unaudited)
  For the nine months ended
  September 30,
  2014
  2013
  (restated)
  Revenues
  $
  3,459,607
  $
  828,888
  Costs of goods sold
  3,281,507
  630,462
  Gross profit
  178,099
  198,426
  Operating expenses
  Depreciation and amortization
  87,069
  19,705
  Impairment of assets
  373,060
  —
  General and administrative
  6,815,927
  6,927,683
  7,276,056
  6,947,388
  Operational income/ (loss)
  (7,097,957
  )
  (6,748,962
  )
  Other income/(expenses)
  Change in fair value of derivative liability
  57,095,577
  18,850,333
  Stock issued for settlements
  —
  (1,237,200
  )
  Gain (loss) on settlement of debt
  (484,028
  )
  —
  Loss on conversion of preferred shares
  —
  (36,490
  )
  Other income/(expense)
  460,296
  —
  Interest income/(expense)
  (1,642,960
  )
  (194,673
  )
  55,428,885
  17,381,970
  Income/(Loss) from continuing operations
  48,330,929
  10,633,008
  Income/(Loss) from discontinued operations
  (1,843,600
  )
  (962,421
  )
  Earnings before income tax
  46,487,329
  9,670,587
  Income taxes
  —
  —
  Net Income
  $
  49,487,329
  $
  9,670,587
  46
  Table of Contents
  On or about August 15, 2014, our United Kingdom based subsidiaries,
  including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC's wholly owned subsidiaries
  (collectively, the U.K. Companies), ceased business operations. As a result, we are reporting the operational results of the U.K.
  Companies under discontinued operations. Operational results under discontinued operations includes a 100% impairment of all U.K.
  Companies' assets, a full write down of the value of each company's equity (or deficit), and the net earnings or losses
  incurred by each. We will continue to carry each company's liabilities on our books under liabilities from discontinued operations
  until such time as the voluntary liquidations currently underway are finalized. Additionally, comparative periods, within our financial
  statements and accompanying notes, have been reclassified to show financial data for our former U.K. Companies under discontinued
  operations. Such reclassifications had no impact on our previously reported net losses.
  Operating Loss; Net Income
  Our net income was $46,487,329 for the nine months ended September
  30, 2014 compared to net income of $9,670,587 for the nine months ended September 30, 2013 (reclassified). These net income figures
  were largely a result of non-cash income due to a change in the fair value of derivative liabilities primarily related to our convertible
  preferred stock, as well as our convertible notes and warrants. Our net loss from discontinued operations was $1,843,600 for the
  nine months ended September 30, 2014 and $962,421 for the nine months ended September 30, 2013 (reclassified). The reclassification
  of financial data for our former U.K. Companies as discontinued operations had no impact on our previously reported net losses.
  Revenue
  Our revenue from the nine months ended September 30, 2014 was $3,459,607compared
  to $828,888 for the nine months ended September 30, 2013 (reclassified). Our revenue was derived from the operations of our subsidiary
  Newport Coachworks, Inc. and no longer includes the results of our subsidiaries Liberty Electric Cars Limited and its subsidiaries,
  and Going Green Limited, which are now recorded under discontinued operations. The growth of Newport Coachwork's revenue
  was due to the increase in bus sales.
  Cost of Goods Sold
  Our cost of goods sold for the nine months ended September 30, 2014
  were $3,281,507 compared to $630,462 for the same period in 2013 (reclassified). The cost of goods sold for the nine month periods
  was derived from the operations of our subsidiary Newport Coachworks, Inc. and no longer includes the results of our subsidiaries
  LEC and its subsidiaries, and Going Green, which are now recorded under discontinued operations.
  Depreciation and Amortization
  Expenses related to depreciation and amortization were $87,069 for
  the nine months ended September 30, 2014, compared to $19,705 for the nine months ended September 30, 2013 (reclassified). The
  increase was attributable to investments in plant and equipment related to the continuing growth of Newport Coachworks.
  General and Administrative Expenses
  General and administrative expenses were $6,815,927 for the nine
  months ended September 30, 2014, compared to $6,191,202 for the nine months ended September 30, 2013 (reclassified). The largest
  component of these expenses are stock-based compensation of $5,717,015 for the nine months ended September 30, 2014 and $6,191,202
  for the nine months ended September 30, 2013 (reclassified). The 2014 stock expense is due to the issuance of 78,792,270 common
  shares to settle liabilities and current and accrued consulting expenses, including 4,000,000 shares for $160,000 in accrued fees
  to our former CEO Ian Hobday, 2,500,000 shares for $100,000 in accrued fees due to Carter Read, President of Newport Coachworks,7,000,000
  shares to Big Wave Stock, valued at $280,000 on the issuance date, to settle an outstanding payable of $3,500 for service rendered,
  two issuances totaling 16,000,000 shares to Bill Hiney, valued at $1,860,000 on their issuance dates, to settle two outstanding
  payables totaling $8,000 for services rendered, 13,500,000 shares valued at $1,425,000 on the issuance dates to Surf Financial
  Group to settle outstanding payables of $6,750 for services rendered, 5,000,000 shares, valued at $200,000 on the
  47
  Table of Contents
  issuance date, to Silverton SA to settle a $2,500 payment on an
  outstanding debt to Roger Knight, an individual, 7,500,000 shares valued at $450,000 on the issuance date to MAFX, Inc. to settle
  an outstanding payable of $3,750 for services rendered, 27,000,000 shares to settle a $545,049 debt with Ironridge, a lender, and
  1,292,270 shares to Burton Neil and Dale Nyhus in connection with GAC's acquisition of approximately 23% of Virdian Motor
  Corporation valued at $173,06.
  Impairment of Assets
  Expenses related to asset impairment were $373,060 for the nine
  months ended September 30, 2014, compared to $0 for the nine months ended September 30, 2013. This expense includes a 100%
  impairment of our $173,060 investment in Viridian Motors and 100% impairment of our $200,000 investment in World Energy Asset Management.
  Not included in Impairment of Assets for the three months ended September 30, 2014, is the $679,163 in asset impairments related
  to the cessation of business and liquidation of LEC and its subsidiaries, and Going Green, which are recorded under Loss from Discontinued
  Operations.
  Change in Fair Value of Derivative Liability
  During the nine months ended September 30, 2014, we had a change
  in fair value of derivative liability of $57,095,577 compared to $18,850,333 for the nine months ended September 30, 2013, with
  the significant difference primarily related to the change in the fair value of our common stock and the issuance of additional
  convertible debt and preferred stock during the nine months ended September 30, 2014.
  Loss on Settlement of Debt
  During the nine months ended September 30, 2014, we had loss on
  settlement of debt of $484,028, compared to $0 for the nine months ended September 30, 2013. The loss in 2014 is primarily related
  to a settlement of a note payable by issuing a new note that includes a conversion feature or by issuing stock with a fair value
  higher than the face amount of the note. The conversion feature was accounted for as a derivative liability, which resulted in
  a higher fair value of the note exchanged.
  Interest Expense
  During the nine months ended September 30, 2014, we had interest
  expense of $1,642,960, compared to $190,673 for the nine months ended September 30, 2013 (reclassified). The main interest expense
  in 2014 stemmed from the amortization and reversal of debt discount related to convertible debt issued and converted.
  Loss from Discontinued Operations
  On or about August 15, 2014, our United Kingdom based subsidiaries,
  including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC's wholly owned subsidiaries,
  ceased business operations. As a result, we are reporting the operational results of these subsidiaries under discontinued operations
  for the nine month period ending September 30, 2014. During the nine months ended September 30, 2014, we incurred net losses from
  discontinued operations of $1,843,600. These losses are attributable to a 100% impairment of all UK-based subsidiary companies'
  assets, a full write off of the value of each companies' equity (or deficit), and the net earnings or losses incurred by
  each. We will continue carrying each company's liabilities on our books until such time as the voluntary liquidation currently
  underway is finalized. For the nine months ended September 30, 2013 (reclassified), the loss from discontinuing operations was
  $962,421.
  48
  Table of Contents
  Liquidity and Capital Resources for the Nine Months Ended
  September 30, 2014 and 2013
  Introduction
  During the nine months ended September 30, 2014 and 2013, because
  of our operating losses, we did not generate positive operating cash flows. Our cash on hand as of September 30, 2014 was
  $44,135 As a result, we have significant short term cash needs. In the past, these needs have been satisfied by generating proceeds
  from the sales of our securities, primarily through the issuance of convertible notes and our Convertible Preferred Series A Stock.
  Such means are not currently available to us, as we have fully committed all remaining authorized, but not yet issued shares, through
  the issuance of irrevocable reserves for some of the issuers of our convertible debt. We currently do not have sufficient capital
  to satisfy our cash needs for operational purposes, but are actively seeking solutions to secure financing, recapitalize our existing
  debt and shareholder structures, raise our authorized share limit, and implement a reverse stock split. All of which, will be subject
  to shareholder approval at a special shareholder meeting, the date of which has not yet been determined.
  Our cash, current assets, total assets, current liabilities, and
  total liabilities as of September 30, 2014 compared to December 31, 2013 (reclassified), respectively, are as follows:
  September 30,
  2014
  December 31,
  2013 (Reclassified)
  Change
  Cash
  $
  44,135
  $
  2,902
  $
  41,233
  Total Current Assets
  649,730
  1,218,463
  (568,733
  )
  Total Assets
  1,021,949
  1,886,868
  (864,919
  )
  Total Current Liabilities
  17,600,010
  75,345,683
  (57,745,673
  )
  Total Liabilities
  $
  17,622,510
  $
  75,549,629
  $
  (57,927,119
  )
  Cash Requirements
  We had cash available as of September 30, 2014
  of $44,135 and $2,902 on December 31, 2013 (reclassified). Based on our revenues, earnings, cash on hand and operational needs,
  we will need to continue borrowing from our shareholders and other related parties, and/or raise capital from the sales of our
  securities, to fund operations.
  Sources and Uses of Cash
  Operations
  We had net cash used by operating activities of $957,033 for the
  nine months ended September 30, 2014, as compared to $737,952 for the nine months ended September 30, 2013 (reclassified). For
  the period in 2014, the net cash used in operating activities consisted primarily of our net income of $46,487,329, adjusted by
  the change in fair value of derivative liability of ($57,095,577), share based compensation of $5,717,015, depreciation and amortization
  of $147,069, amortization of debt discount of $1,671,252, and changes in operating assets and liabilities, consisting of: other
  assets of ($5,138), prepaid expenses $545,409, accounts payable and accrued expenses of $1,775,678, accounts receivable of ($800),
  and inventory of ($422,311).
  Investments
  We had net cash used in investing activities of $17,000 for the
  nine months ended September 30, 2014 (reclassified), compared to $544,389 for the nine months ended September 30, 2013. In the
  nine months ended September 30, 2013, the net cash used in investing activities related mainly to purchase of property and equipment
  of $587,411, offset by proceeds from disposal of vehicles of $28,126 and proceeds from acquisition of $14,896.
  49
  Table of Contents
  Financing
  Our net cash provided by financing activities for the nine months
  ended September 30, 2014 was $1,003,456 compared to $1,305,617 for the nine months ended September 30, 2013. For the period in
  2014, our financing activities consisted primarily of $1,085,682 from proceeds from notes payable, $14,134 from borrowings on line
  of credit and $109,860 as payments on notes payable. For the period in 2013, proceeds from funds received from FMS amounted to
  $907,839, our financing activities consisted of $467,406 proceeds from notes payable, offset by $69,628 in payments to reduce our
  line of credit
  Off Balance Sheet Arrangements
  We have no off balance sheet arrangements.
  ITEM 3. Quantitative and Qualitative Disclosures About Market
  Risk
  As a smaller reporting company, we are not required to provide the
  information required by this Item.
  ITEM 4. Controls and Procedures
  (a)	Evaluation of Disclosure Controls and Procedures
  We maintain disclosure controls and procedures (as defined in Rule
  13a-l5(e) under the Exchange Act) that are designed to ensure that information that would be required to be disclosed in Exchange
  Act reports is recorded, processed, summarized and reported within the time period specified in the SEC's rules and forms,
  and that such information is accumulated and communicated to our management, including to our Chief Executive Officer and Chief
  Financial Officer (our Principal Accounting Officer), as appropriate, to allow timely decisions regarding required disclosure.
  As required by Rule 13a-15 under the Exchange Act, our management,
  including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our
  disclosure controls and procedures as of September 30, 2014. Based on that evaluation, our Chief Executive Officer and Chief Financial
  Officer concluded that as of September 30, 2014, and as of the date that the evaluation of the effectiveness of our disclosure
  controls and procedures was completed, our disclosure controls and procedures were not effective to satisfy the objectives for
  which they are intended.
  (b)	Management's Report on Internal Controls over Financial
  Reporting
  Our management is responsible for establishing and maintaining effective
  internal control over financial reporting (as defined in Rule 13a-l5(f) of the Securities Exchange Act). Management assessed the
  effectiveness of the Company's internal control over financial reporting as of September 30, 2014. In making this assessment,
  management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on
  that assessment, management believes that, as of September 30, 2014, the Company's internal control over financial reporting
  was ineffective based on the COSO criteria, due to the following material weaknesses listed below.
  Insufficient segregation of duties in our finance and accounting
  functions due to limited personnel
  . We internally performed all aspects of our financial reporting process, including, but
  not limited to, access to the underlying accounting records and systems, the ability to post and record journal entries and responsibility
  for the preparation of the financial statements. Due to the fact these duties were performed by limited personnel (one person),
  a lack of review was created over the financial reporting process that might result in a failure to detect errors in spreadsheets,
  calculations, or assumptions used to compile the financial statements and related disclosures as filed with the SEC.
  50
  Table of Contents
  Insufficient corporate governance policies
  . We have not documented
  our internal controls. We have limited policies and procedures that cover the recording and reporting of financial transactions
  and accounting provisions. As a result, we may be delayed in our ability to calculate certain accounting provisions. While we believe
  these provisions are accounted for correctly in the attached audited financial statements our lack of internal controls could lead
  to a delay in our reporting obligations. We were required to provide written documentation of key internal controls over financial
  reporting beginning with our fiscal year ending December 31, 2009. Management evaluated the impact of our failure to have written
  documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded
  that the control deficiency that resulted represented a material weakness.
  Effective controls over the control environment were not maintained
  .
  Specifically, a formally adopted written code of business conduct and ethics that governs our employees, officers, and directors
  was not in place. Additionally, management has not developed and effectively communicated to our employees its accounting policies
  and procedures. This has resulted in inconsistent practices. Further, our Board of Directors does not currently have a director
  that qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level
  programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material
  weakness.
  These control deficiencies could result in a material misstatement
  to our interim or annual financial statements that possibly would not be prevented or detected.
  When we are financially able, we intend to take appropriate and
  reasonable steps to make the necessary improvements to remediate these deficiencies and we intend to consider the results of our
  remediation efforts and related testing as part of our next assessment of the effectiveness of our internal control over financial
  reporting.
  (c)	Changes in Internal Control over Financial Reporting
  There were no material changes in our internal controls over financial
  reporting during the three months ended September 30, 2014.
  (d)	Officer's Certifications
  Appearing as an exhibit to this quarterly report on Form 10-Q are
  "Certifications" of our Chief Executive and Financial Officer. The Certifications are required pursuant to Sections
  302 of the Sarbanes-Oxley Act of 2002 (the "Section 302 Certifications"). This section of the quarterly report on Form
  10-Q contains information concerning the Controls Evaluation referred to in the Section 302 Certifications. This information should
  be read in conjunction with the Section 302 Certifications for a more complete understanding of the topics presented.
  51
  Table of Contents
  PART II – OTHER INFORMATION
  ITEM 1. Legal Proceedings
  Our predecessor, Go Green USA,
  LLC ("Go Green") was a party defendant, along with other defendants in a civil action filed in Marshall County, West
  Virginia by Glen Dale Motor Co. and Tomsic Motor Co, Civil Action No. 11-C-104 H. The basis for this action was a claim by the
  plaintiffs that the defendants breached a dealer agreement entered into by and between the plaintiffs and the defendants by accepting
  a franchise fee and payment for vehicles (totaling approximately $250,000) from the plaintiffs but failing to deliver any of the
  purchased vehicles to the plaintiffs. This undefended and previously unknown action resulted in a default judgment and related
  judgment order in the amount of $3,717,615 with interest accruing at 7% per annum from and after February 13, 2012. There is no
  active effort to enforce this action against Go Green or GAC. We have not accrued for this event in the financial statements. However,
  we believe that if we are properly served and are a proper party to the litigation, that a pay out from the judgement could be
  up to $3,717,615, plus accumulative interest.
  On February 10, 2014, Mr. Ray
  Mariorenzi filed a lawsuit against alleging breach of an oral contract. The lawsuit is entitled Ray Mariorenzi v. Global Market
  Advisors, Inc. and Green Automotive Company Corporation, Superior Court of the State of California for the County of Orange, Central
  Justice Center - Case No. 30-2014-00704187, and in the complaint Mr. Mariorenzi alleges that at meeting in March, 2012, he made
  an oral agreement with an officer and director of Global Market Services, Inc. for the purpose of Mr. Mariorenzi performing consulting
  services to benefit Green Automotive Company and that such services would be provided from March 2012 through end of 2013. In the
  Complaint, Mr. Mariorenzi alleges he performed the services but has not been completely compensated for such services and, as a
  result, claims he is owed $123,500 and 5,750,000 shares of our common stock from the defendants. We were served on or about February
  27, 2014. Pursuant to an arrangement with Plaintiff's counsel, we filed an Answer, with a general denial, on April 16, 2014.
  We began to wind down Footloose 4X4 Limited ("Footloose"),
  based in Newton Abbot, Devon, United Kingdom. Footloose, a subsidiary of Liberty Electric Company Limited ("LEC"),
  was never a part of the GAC group, thus its financial operations were not consolidated into our financials. A formal petition to
  liquidate Footloose was presented on July 3, 2014 and a formal Resolution for Voluntary Winding-up was granted August 27, 2014.
  Legal representation of the s was facilitated by Everys Solicitors, an insolvency practitioner firm based in the United Kingdom
  (U.K.).
  On or about July 28, 2014, we contacted Lameys, an insolvency practitioner
  firm based in the United Kingdom (U.K.), for advice on the disposition of the liabilities and assets of our subsidiaries organized
  and operated in the U.K. Lameys was subsequently retained.
  On or about August 15, 2014, the Company's subsidiaries based
  in the U.K., including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC's wholly owned
  subsidiaries, ceased business operations.
  Between August 26 and September 11, 2014, Lameys caused notices
  of a creditors committee meeting to be sent to the following subsidiaries of GAC: Going Green Limited and Liberty Electric Cars
  Limited (LEC), and to LEC's subsidiaries LEC 2 Limited (LEC2), LEC Europe Limited (LEC-EU) and OEC International Limited
  (OEC). OEC is wholly owned by LEC, but was consolidated into the GAC group as the transaction was never completed.
  The purpose of the meetings held in late September 2014 was to conduct
  voluntary liquidations of these companies in accordance with Section 98 of the U.K. Insolvency Act of 1986. At the meetings, a
  creditors' voluntary liquidation of these companies was agreed upon. Under the procedure, Lameys supervised and conducted
  a sale, or other dispositions, of the assets of the U.K. subsidiaries. Lameys then uses the proceeds from asset dispositions to
  pay outstanding liabilities of the subsidiaries in a manner determined and approved by the creditors. As a result, we expect the
  U.K. subsidiaries to be released of all financial liabilities to their creditors, through proceeds from the liquidated assets or
  elimination as permitted by operation of U.K. law, subject to a final review by U.K.'s Insolvency Services anticipated to
  be completed two to three months after each company's files are presented to Insolvency Services by Lameys.
  52
  Table of Contents
  On or about September 10, 2014, we entered into a settlement agreement
  with the SEC, wherein we agreed to pay a penalty fine of $50,000 for failing to disclose certain issuances of unregistered securities
  between December 2013 and July 2014, and to disclose the existence of the related financing agreements. As of the date of this
  filing, $40,000 of the penalty payable remains outstanding.
  In the ordinary course of business,
  we are from time to time involved in various pending or threatened legal actions. The litigation process is inherently uncertain
  and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or
  results of operations. However, in the opinion of our management, other than as set forth herein, matters currently pending or
  threatened against us are not expected to have a material adverse effect on our financial position or results of operations.
  ITEM 1A. Risk Factors
  As a smaller reporting company, we are not required to provide the
  information required by this Item.
  ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
  During the three months ended September 30, 2014, we issued the
  following unregistered securities:
  Common Stock
  On or about July 10, 2014, we issued 2,818,337 shares of our common
  stock to JMJ Financial in connection with the repayment of convertible debt in the amount of $24,012.23. These shares were issued
  without a restrictive legend under Rule 144 of Section 4(1) of the Securities Act of 1933, as amended, since the debt being converted
  was more than six months old. These issuance of the shares were exempt from registration under Section 4(a)(2) of the Securities
  Act of 1933, as amended (the "Securities Act") as transactions by an issuer not involving a public offering.
  On or about July 14, 2014, we issued 8,608,322 shares of our common
  stock to Redwood Fund II, LLC in connection with the repayment of convertible debt in the amount of $60,000. These shares were
  issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities Act of 1933, as amended, since the debt being
  converted was more than six months old. These issuance of the shares were exempt from registration under Section 4(a)(2) of the
  Securities Act of 1933, as amended (the "Securities Act") as transactions by an issuer not involving a public offering.
  On or about July 15, 2014, we issued 2,500,000 shares of our common
  stock to GEL Properties, LLC in connection with the repayment of convertible debt in the amount of $ $20,459. These shares were
  issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities Act of 1933, as amended, since the debt being
  converted was more than six months old. These issuance of the shares were exempt from registration under Section 4(a)(2) of the
  Securities Act of 1933, as amended (the "Securities Act") as transactions by an issuer not involving a public offering.
  On or about July 21, 2014, we issued 7,246,377 shares of our common
  stock to Redwood Fund II, LLC in connection with the repayment of convertible debt in the amount of $50,000, of which $10,000 was
  for accrued interest. These shares were issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities Act
  of 1933, as amended, since the debt being converted was more than six months old. These issuance of the shares were exempt from
  registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act") as transactions
  by an issuer not involving a public offering.
  On or about July 29, 2014, we issued 554,820 shares of our common
  stock to GEL Properties, LLC in connection with the repayment of convertible debt in the amount of $ 4,541. These shares were issued
  without a restrictive legend under Rule 144 of Section 4(1) of the Securities Act of 1933, as amended, since the debt being converted
  was more than six months old. These issuance of the shares were exempt from registration under Section 4(a)(2) of the Securities
  Act of 1933, as amended (the "Securities Act") as transactions by an issuer not involving a public offering.
  53
  Table of Contents
  On or about September 12, 2014, we issued 3,894,867 shares of our
  common stock to Black Mountain Equities in connection with the repayment of convertible debt in the amount of $30,653, of which
  $1,653 was for accrued interest. These shares were issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities
  Act of 1933, as amended, since the debt being converted was more than six months old. These issuance of the shares were exempt
  from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act") as transactions
  by an issuer not involving a public offering.
  On or about September 23, 2014, we issued 912,569 shares of our
  common stock to Union Capital, LLC in connection with the repayment of convertible debt in the amount of $5,201, of which $202
  was for accrued interest. These shares were issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities
  Act of 1933, as amended, since the debt being converted was more than six months old. These issuance of the shares were exempt
  from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act") as transactions
  by an issuer not involving a public offering.
  On or about September 26,
  2014, we issued 384,615 shares of our common stock to Blue Citi in connection with the repayment of convertible debt in the amount
  of $1,000. These shares were issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities Act of 1933,
  as amended, since the debt being converted was more than six months old. These issuance of the shares were exempt from registration
  under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act") as transactions by an issuer
  not involving a public offering.
  On or about September 30, 2014, we issued 5,044,110 shares of our
  common stock to Black Mountain Equities in connection with the repayment of convertible debt in the amount of $20,176, of which
  1,176 was for accrued interest. These shares were issued without a restrictive legend under Rule 144 of Section 4(1) of the Securities
  Act of 1933, as amended, since the debt being converted was more than six months old. These issuance of the shares were exempt
  from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act") as transactions
  by an issuer not involving a public offering.
  Preferred Stock
  On September 11, 2014, we issued an aggregate of 35,562,651 shares
  of our Series Y Convertible Preferred Stock to eight different individuals and entities in exchange for the same individuals and
  entities cancelling an aggregate of 35,605,119 shares of our common stock, pursuant to a board resolution on August 21, 2014. Series
  Y Convertible Preferred shares are convertible into common shares of the company's common stock on a one for one basis, at
  such time as the Company's authorization limit is increased and sufficient shares are available. The exchange of the 35,562,651
  common shares into the same number of Series Y Convertible Preferred Stock was executed so that we could increase the number of
  issuable shares available to us, as all of our common shares that were not issued and outstanding at the time the time of the exchange,
  were reserved for convertible note holders.
  The Series Y Convertible Preferred Shares issued went to certain
  of our officers and directors, family members of one of the directors, and one acquaintance of one of the directors, namely: Ian
  Hobday (4,000,000 shares of Series Y Preferred Stock in exchange for cancelling 4,000,000 shares of our common stock), Hobbers
  Inc. (an entity controlled by Ian Hobday, 6,438,823 shares of Series Y Preferred Stock in exchange for cancelling 6,438,823 shares
  of our common stock),Peter Leeds (3,280,392 shares of Series Y Preferred Stock in exchange for cancelling 3,280,392 shares of our
  common stock, of which 400,000 were issued to Anita Corey at Peter Leeds request; the difference 2,880,392 was issued to Peter
  Leeds), Anita Corey, 63,436 shares of Series Y Preferred Stock in exchange for 63,436 shares of our common stock), Beatrice G.
  Leeds (a relative of Peter Leed's, 200,000 shares of Series Y Preferred Stock in exchange for cancelling 200,000 shares of
  our common stock), Phillip C. Leeds (a relative of Peter Leed's, 290,000 shares of Series Y Preferred Stock in exchange for
  cancelling200,000 shares of our common stock), David Leeds (a relative of Peter Leed's, 290,000 shares of Series Y Preferred
  Stock in exchange for cancelling 290,000 shares of our common stock),and Carter Read (21,000,000 shares of Series Y Preferred Stock
  in exchange for cancelling 21,000,000 shares of our common stock). The shares were restricted in accordance with Rule 144.The issuances
  were exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933 since the investor was either accredited
  or sophisticated and familiar with our operations.
  54
  Table of Contents
  ITEM 3. Defaults Upon Senior Securities
  As a September 30, 2014 and currently, at the time of filing this
  report, we are in default of covenants of our Series A Preferred Shares and covenants of our outstanding convertible notes, both
  of which stipulate that we must maintain sufficient shares for both to convert their securities into common shares under the conversion
  terms specified by their respective agreements. As of September 30, 2014, and as of the date of filing, we have insufficient authorized
  shares from which to satisfy Preferred A stockholders and convertible note holders' conversion rights. Other defaults include
  the late filing of our SEC Form 10-Q for the period ending September 30,2014, the late filing of our SEC Form 10-K for the period
  ending December 31, 2014, and the late filing of our SEC Form 10-Q for the periods ending March 31, 2015 and June 30, 2015.
  ITEM 4. Mine Safety Disclosures
  During the period covered by this report there were no events which
  are required to be reported under this Item.
  ITEM 5. Other Information
  Disposition of Our United Kingdom-based Subsidiaries'
  Assets, Liabilities and Operations
  We began to wind down Footloose 4X4 Limited (Footloose), a subsidiary
  of Liberty Electric Company Limited (LEC), based in Newton Abbot, Devon, United Kingdom at the end of 2013. A formal petition to
  liquidate Footloose was presented on July 3, 2014 and a formal Resolution for Voluntary Winding-up was granted August 27, 2014.
  Legal representation of the liquidation was facilitated by Everys Solicitors, an insolvency practitioner firm based in the United
  Kingdom (U.K.). As Footloose was never formalized as part of the GAC group, its financial operations were never consolidated into
  our financials.
  On or about July 28, 2014, we contacted Lameys, an insolvency practitioner
  firm based in the United Kingdom (U.K.), for advice on the disposition of the liabilities and assets of Going Green Limited and
  Liberty Electric Cars Limited (LEC), along with each of LEC's wholly owned subsidiaries, excluding Footloose, each organized
  and operated in the U.K. Lameys was subsequently retained under the terms and conditions described below.
  The decision to pursue liquidation for each of these companies was
  based on management's assessment of its U.K. operations and the working capital requirements to maintain these operations.
  On or about August 15, 2014, the Company's subsidiaries based
  in the U.K., including Going Green Limited and Liberty Electric Cars Limited (LEC), along with each of LEC's wholly owned
  subsidiaries, ceased business operations.
  On August 21, 2014 Director Nicholas Hewson resigned as a director
  of Green Automotive with his resignation effective that day. Mr. Hewson's resignation was not related to any disagreement
  with us on any matter relating to our operations, policies and practices. Mr. Hewson, who resides in the United Kingdom and is
  retired, informed the board that the geographic separation caused by our decision to liquidate the U.K. businesses and resulting
  shift of focus to U.S. operations – namely Newport Coachworks, made Mr. Hewson's ability to devote the time required
  to perform his oversight functions as a director more difficult. We accepted Mr. Hewson's resignation and expressed appreciation
  for the services he performed as a director.
  Between August 26 and September 11, 2014, Lameys caused notices
  of creditors committee meetings to be sent to the following subsidiaries of GAC: Going Green Limited and Liberty Electric Cars
  Limited (LEC), and to LEC's subsidiaries LEC 2 Limited (LEC2), LEC Europe Limited (LEC-EU) and OEC International Limited
  (OEC). OEC is wholly owned by LEC, but was never included within the GAC group of companies.
  55
  Table of Contents
  The purpose of the creditors committee meetings held in late September
  2014 was to conduct voluntary liquidations of these companies in accordance with Section 98 of the U.K. Insolvency Act of 1986.
  At the meetings, a creditors' voluntary liquidation of these companies was agreed upon. Under the procedure, Lameys supervised
  and conducted a sale, or other dispositions, of the assets of the U.K. subsidiaries. Lameys will use the proceeds from these asset
  dispositions to pay outstanding liabilities of the subsidiaries in a manner determined and approved by the creditors. As a result,
  we believe the U.K. subsidiaries will be released of all financial liabilities to their creditors, through proceeds from the liquidated
  assets or elimination as permitted by operation of U.K. law, subject to a final review by U.K.'s Insolvency Services anticipated
  to be completed two to three months after each company's files are presented to Insolvency Services by Lameys.
  Included in the liabilities summarized by Lameys, were payables
  due to former CFO Darren West (deceased) and CEO Ian Hobday in the amounts of £198,106 and £145,949, respectively.
  As their working relationship with us was governed by consulting agreements with Liberty Electric Company, and not GAC, our liability
  to them ended with the voluntary insolvency of LEC, which was initiated by Mr. Hobday. A claimed payable of $260,898 due to
  Petra Beitl, as stated in our 10-Q filed for the period ending June 30, 2014, was not listed amongst LEC's creditors by Lameys.
  However, as Ms. Beitl's consulting agreement was with LEC, any outstanding payable to her ended with the voluntary insolvency
  of LEC.
  With creditors' approval, on or about August 27, 2014, former
  LEC and Going Green staff members, led by Clive Southwell, a director of the U.K. businesses at the time LEC and Going Green ceased
  operations, along with financial support from former GAC director Nicholas Hewson and our then CEO Ian Hobday, purchased the assets
  of Going Green through a company they organized, Clean Transport and Technology Limited (CTT) for a purchase price of £22,800
  (£19,000 plus £3,280 value added tax (VAT)) and the assets of LEC2 for £7,200 (£6,000 plus £1,200
  VAT) for a total of £30,000. The assets of LEC2 consisted primarily of spare parts and batteries, and the assets of Going
  Green consist primarily of parts, equipment and used vehicles. The sale proceeds were paid to Lameys and the sales were approved
  at the respective creditors' committee meetings when they were held. The proceeds are to be distributed to the creditors
  of the respective subsidiaries upon or before final settlement of the liquidation procedures. We were advised by Lameys that the
  likelihood of an objection to this transaction was minimal since the value of the transaction was supported by independent valuation
  of the assets obtained by Lameys prior to accepting the purchase price into escrow.
  Ian G. Hobday, our then CEO and a director of LEC, LEC2 and LEC-EU
  at the time these companies ceased operations, made an investment of £5,000 in CTT in the form of a loan to assist CIT in
  the acquisition of the assets. Mr. Hobday's investment comprised 16.67% of the liquidated assets' purchase price. Similarly,
  Mr. Nicholas Hewson, a former director of GAC (Mr. Hewson resigned as one of our directors effective August 21, 2014), made an
  equity investment of £5,000 in CTT. Mr. Hewson's investment comprised 16.67% of the liquidated assets' purchase
  price. Collectively, the investments by Mr. Hobday and Mr. Hewson comprised 33.33% of the liquidated assets' purchase price
  (including Value Added Tax (VAT)). The terms and exact dates of Mr. Hobday and Mr. Hewson's investments were not disclosed
  to us.
  Lameys commenced final documentation and submitted its recommendations
  to the U.K.'s "Insolvency Services" for final review and approval. Insolvency Services then conducted both an
  investigative and administrative review process.
  The final disposition of LEC is subject to receiving payment of
  £15,000 (approximately $24,350) from us. The payment amount is for funds received by GAC when we sold LEC's investment
  in Powabyke. The proceeds of that sale should have gone to LEC, but instead we received those funds. Because LEC was in liquidation
  at the time Powabyke was sold, all LEC funds (and all funds owed LEC) were under the control of the liquidator and should have
  been forwarded to LEC. Thus, GAC must return the received proceeds (£15,000) by rendering payment to the liquidator.
  56
  Table of Contents
  Series Y Preferred Stock
  On September 2, 2014, we filed a Certificate of Designation with
  the Nevada Secretary of State in connection with the creation of a class of shares designated by our Board of Directors as the
  "Series Y Preferred Shares" with the characteristics described below. The purpose of the Series Y Preferred Shares
  is to create additional authorized shares of common stock by permitting the return of issued and outstanding shares of common stock
  held our management and others to the treasury for cancellation and to be available for original issuance. In return for the submission
  of the shares of common stock for cancellation, each participating shareholder shall receive an identical number of restricted
  Series Y Preferred Shares. The total number of issued and outstanding shares of common stock that may be subject to this arrangement
  is forty million (40,000,000) shares of common stock and an equivalent number of Series Y Preferred Shares. A total of 35,415,592
  shares of common stock have been returned for cancellation and an equivalent number of restricted shares of Series Y Preferred
  Stock have been issued to the participants.
  57
  Table of Contents
  ITEM 6, Exhibits
  3.1 (1)
  Articles of Incorporation of Green Automotive Company, filed June 3, 2011
  3.2 (1)
  Articles of Merger of Green Automotive Company, filed October 19, 2011
  3.3 (1)
  Articles of Merger between Green Automotive Company and Matter of Time I Co., filed December 13, 2012
  3.4 (1)
  Amended and Restated Bylaws of Green Automotive Company
  10.1 (1)
  Advisory Agreement by and between Green Automotive Company and Global Market Advisors, Inc. dated July 19, 2010
  10.2 (1)
  Credit Agreement by and between Green Automotive Company and Global Trade Finance, Inc. dated January 1, 2012
  10.3 (1)
  Settlement, General Release and Conversion Agreement by and between Green Automotive Company and Global Trade Finance, Inc. dated June 30, 2012
  10.4 (1)
  Assignment Agreement by an between Green Automotive Company and Investment Finance IFC Ltd. Dated January 27, 2012
  10.5 (1)
  Merger Agreement and Plan of Reorganization by and between Green Automotive Company and Matter of Time I Co. dated February 10, 2012 and completed December 12, 2012.
  10.6 (1)
  Stock Exchange Agreement by and between Green Automotive Company and Liberty Electric Cars Ltd. Dated June 28, 2012
  10.7 (1)
  Amendment No. 1 to Stock Exchange Agreement by and between Green Automotive Company and Liberty Electric Cars Ltd. Dated December 4, 2012
  10.8 (1)
  Stock Purchase Agreement by and between Green Automotive Company and First Market Services dated June 29, 2012
  10.9 (1)
  Acquisition and Stock Exchange Agreement by and between Green Automotive Company and Newport Coachworks, Inc. dated October 12, 2012
  10.10 (1)
  Amended and Restated Independent Contractor Agreement by and between Liberty Electric Cars Ltd. And Ian Hobday dated December 4, 2012
  10.11 (1)
  Amended and Restated Independent Contractor Agreement by and between Liberty Electric Cars Ltd. And Darren West dated December 4, 2012
  10.12 (1)
  Employment Agreement by and between Newport Coachworks, Inc. and Carter Read dated October 2012
  10.13 (1)
  Distribution Agreement by and between Newport Coachworks, Inc. and Don Brown Bus Sales, Inc. dated November 1, 2012
  10.14 (1)
  Employment Agreement with Mark Aubry dated December 17, 2012
  10.15 (1)
  Stock Purchase Agreement by and between Green Automotive Company and First Market Services dated November 20, 2012
  10.16 (1)
  Stock Purchase Agreement by and between Green Automotive Company and Mark E. Crone and Bosch Equities, LP dated September 1, 2011
  10.17 (1)
  Exchange Agreement by and between Green Automotive Company and Investment Finance Company IFC Limited dated September 30, 2012
  10.18 (2)
  Investment Agreement with Kodiak Capital Group, LLC dated March 14, 2013
  10.19 (2)
  Registration Rights Agreement with Kodiak Capital Group, LLC dated March 14, 2013
  10.20 (3)
  Acquisition and Stock Exchange Agreement by and between Green Automotive Company, Liberty Electric Cars Ltd. and  Going Green Limited dated February 28, 2013
  10.21 (4)
  Securities Purchase Agreement with Auctus Private Equity Fund, LLC, dated August 26, 2013
  10.22 (4)
  Promissory Note issued to Auctus Private Equity Fund LLC, dated August 26, 2013
  10.23 (4)
  Securities Purchase Agreement with LG Capital Funding, LLC, dated August 21, 2013
  10.24 (4)
  Promissory Note issued to LG Capital Funding, LLC, dated August 21, 2013
  10.25 (5)
  Services Agreement by and between Navistar, Inc. and Liberty Electric Cars Ltd. dated May 3, 2011
  10.26 (6)
  Summary of Amendment to D Distribution Agreement by and between Newport Coachworks, Inc. and Don Brown Bus Sales, Inc. dated November 1, 2012
  10.27 (7)
  Acquisition and Stock Exchange Agreement by and between Green Automotive Company, the BMI Entities and the BMI Entity Shareholders dated February 17, 2014
  10.28 (7)
  Amendment No. 1 to the Blackhawk Agreement dated February 20, 2014
  10.29 (7)
  Amendment No. 2 to the Blackhawk Agreement dated March 4, 2014
  10.30 (7)
  Amendment No. 3 to the Blackhawk Agreement dated March 17, 2014
  10.31 (7)
  Amendment No. 4 to the Blackhawk Agreement dated April 14, 2014
  10.32 (7)
  Consulting Agreement with Floyd Sanders dated April 8, 2014
  10.33 (7)
  Consulting Agreement with Sergio Larios dated April 8, 2014
  10.34 (7)
  Consulting Agreement with Carlos Larios dated April 8, 2014
  10.35 (7)
  Consulting Agreement with Lin Austin dated April 8, 2014
  58
  Table of Contents
  21.1*
  List of Subsidiaries
  31.1*
  Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
  31.2*
  Rule 13a-14(a)/15d-14(a) Certification of Chief Accounting Officer
  32.1*
  Section 1350 Certification of Chief Executive Officer
  32.2*
  Section 1350 Certification of Chief Accounting Officer
  101.INS **
  XBRL Instance Document
  101.SCH **
  XBRL Taxonomy Extension Schema Document
  101.CAL **
  XBRL Taxonomy Extension Calculation Linkbase Document
  101.DEF **
  XBRL Taxonomy Extension Definition Linkbase Document
  101.LAB **
  XBRL Taxonomy Extension Label Linkbase Document
  101.PRE **
  XBRL Taxonomy Extension Presentation Linkbase Document
  * Filed herewith.
  **
  XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus
  for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18
  of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
  (1)
  Incorporated by reference from our Current Report on Form 8-K filed with the Commission on
  December 20, 2012.
  (2)
  Incorporated by reference from our Current Report on Form 8-K filed with the Commission on
  March 19, 2013.
  (3)
  Incorporated by reference from our Current Report on Form 8-K filed with the Commission on
  August 15, 2013.
  (4)
  Incorporated by reference from our Registration Statement on Form S-1/A filed with the Commission
  on November 12, 2013.
  (5)
  Incorporated by reference from our Amended Current Report on Form 8-K/A filed with the Commission
  on June 17, 2013.
  (6)
  Incorporated by reference from our Amended Current Report on Form 8-K/A filed with the Commission
  on November 29, 2013.
  (7)
  Incorporated by reference from our Current Report on Form 8-K filed with the Commission on
  April 17, 2014.
  59
  Table of Contents
  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.
  Green Automotive Company
  a Nevada corporation
  Dated:  January 15, 2016
  /s/ Ben Rainwater
  By:
  Ben Rainwater
  Its:
  CEO
  60