GEVI General Enterprise Ventures Inc (PK)

General Environmental Management Inc. (GEM) (OTCBB: GEVI), a company specializing in the treatment and disposal of non-hazardous wastewater, today announced its financial results for the three months ended March 31, 2010. The company reported first-quarter GAAP (generally accepted accounting principles) earnings per share (EPS) at $0.30. For the first time in Company history, GEM has recorded a quarterly net income. Total net income for the quarter was calculated at $4,477,955.

Revenues for the first quarter are strictly from the Southern California Waste Water (SCWW) subsidiary, due to the discontinuation of all other segments of the GEM hazardous waste business during the first quarter of 2010. Revenues topped $1.46 million, up 28% from $1.14 million for the same time period in 2009. The new company direction to a primarily non-hazardous wastewater treatment driven business model provides the foundation to build a strong enterprise.

First quarter gross profits for 2010 were $172,769, down from $272,437 reported for the same time period in 2009. This reduction in 2010 gross profits is primarily attributed to a $150,000 one-time remediation expense to improve the facility in Santa Paula. Future quarterly results will not have recurring expenses from the facility's improvements. Monetary gain on the sale of the GEM Delaware facility and its subsidiaries equaled $8.687 million.

GEM operating expenses includes a non-cash charge in the first quarter totaling $380,000 related to the issuance of S-8 shares for business development. The current weighted average shares of common stock outstanding, basic, and diluted is 15,057,653.

Chief Executive Officer of GEM Timothy Koziol stated, “We are pleased with the results shown in our first quarter. For the first time in the Company’s inception we have positive net income. I firmly believe that the decision to pursue the non-hazardous wastewater strategy has been a wise one and look forward to building and developing our business model. While our financial statements only include the revenue through SCWW as footnotes, we expect that our 2nd quarter results will be more clearly defined as the non-hazardous wastewater treatment becomes our sole revenue source.”

 

GENERAL ENVIRONMENTAL MANAGEMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

  March 31, December 31, 2010 2009 (Unaudited) ASSETS CURRENT ASSETS: Cash in bank $ 241,239 $ 466,891

Accounts receivable, net of allowance for doubtful accounts of $10,000 and $10,000, respectively

1,053,424 974,340 Prepaid expenses and other current assets 167,726   56,196   Total Current Assets 1,462,389 1,497,427   Property and Equipment – Net of accumulated depreciation $465,470 and $153,448, respectively 12,616,260 12,662,494 Restricted cash 900,151 900,122 Permits and franchises 1,409,081 1,455,534 Deferred financing fees 163,942 158,898 Deposits 475,759 184,920 Assets of GEM Delaware held for sale - 2,922,639 Due from buyer – MTS 1,089,341   1,089,341   TOTAL ASSETS $ 18,116,923   $ 20,871,375     LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 2,115,138 $ 2,176,801 Accrued expenses 1,500,747 1,277,662 Payable to related party 931,726 765,628 Current portion of acquisition notes payable 564,534 1,072,974

Current portion of long-term obligations

4,049,236 4,822,719 Current portion of financing agreement 6,777,027   4,903,775   Total Current Liabilities 15,938,408   15,019,559     LONG-TERM LIABILITIES : Financing agreements, net of current portion - 7,558,005

Long-term obligations, net of current portion

3,783,919 3,238,420 Acquisition Notes Payable, net of current portion 8,171,674 7,921,674 Derivative liabilities -   2,921,552   Total Long-Term Liabilities 11,955,593   21,639,651     STOCKHOLDERS’ EQUITY Common stock, $.001 par value, 1,000,000,000 shares authorized, 21,995,153 and 14,557,653 shares issued and outstanding 22,008 14,570 Additional paid in capital 56,247,236 54,721,872 Accumulated deficit (66,046,322 ) (70,524,277 ) Total Stockholders' Equity (9,977,078 ) (15,787,835 ) TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY $ 18,116,923   $ 20,871,375    

GENERAL ENVIRONMENTAL MANAGEMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

  Three months ended March 31, 2010   March 31, 2009   REVENUES $ 1,458,706 $ -   COST OF REVENUES 1,285,937   -     GROSS PROFIT 172,769 -   OPERATING EXPENSES 2,588,949   2,103,598     OPERATING LOSS (2,416,180 ) (2,103,598 )   OTHER INCOME (EXPENSE): Interest and financing costs –net (868,880 ) (887,528 ) Other non-operating income - 8,265 Loss on extinguishment of debt (1,800,861 ) - Gain on extinguishment derivative financial instruments 1,709,042   552,512   LOSS FROM CONTINUING OPERATIONS (3,376,879 ) (2,430,349 ) DISCONTINUED OPERATIONS: Gain (Loss) from discontinued operations (407,298 ) 889,114 Gain on sale of GEM Delaware 8,687,132   -   8,279,834   889,114   INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES 4,902,955 (1,541,235 ) PROVISION FOR INCOME TAXES (425,000 ) -   NET INCOME (LOSS) 4,477,955   (1,541,235 )   Net income (loss) per common share: Basic $ .30   $ (.12 )   Weighted average shares of common stock outstanding: Basic 15,057,653   12,691,420  

About General Environmental Management, Inc.

General Environmental Management, Inc. (www.go-gem.com) owns and operates a non-hazardous wastewater treatment facility, Southern California Waste Water (www.scww.com), in Santa Paula, Calif., as well as provides various environmental services and solutions. GEM is headquartered in Pomona, Calif.

FORWARD-LOOKING STATEMENTS

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or development that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company's actual results to differ materially from those implied or expressed by the forward-looking statements. The Company assumes no duty whatsoever to update these forward-looking statements or to conform them to future events or developments.