EXTREME BIODIESEL, INC. - Quarter Report: 2011 March (Form 10-Q)

10Q

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

X . Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2011

. Transition Report under Section 13 or 15(d) of the Exchange Act

For the Transition Period from ________to __________

Commission File Number: 333-152837

BookMerge Technologies Inc.

(Exact Name of Registrant as Specified in its Charter)


NEVADA	36-4627722
(State of other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)


1560 N. Maple Street
Corona CA	92880
(Address of principal executive offices)	(Zip Code)

Registrant's Phone: (951) 734-5344

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section13 or 15(d) of the Exchange Act of 1934 during the past 12 months (or 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 X . 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.


Large accelerated filer	.	Accelerated filer	.
Non-accelerated filer	. (Do not check if a smaller reporting company)	Smaller reporting company	X .

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes . No X .

As of Mar. 31, 2011, the issuer had 102,438,650 shares of common stock issued and outstanding.


	TABLE OF CONTENTS	Page

PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	13
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	14
Item 4.	Controls and Procedures	15

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	15
Item 1A.	Risk Factors	15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3.	Defaults Upon Senior Securities	15
Item 4.	Submission of Matters to a Vote of Security Holders	15
Item 5.	Other Information	15
Item 6.	Exhibits	16

ITEM 1 FINANCIAL STATEMENTS


EXTREME GREEN TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEET
as at March 31, 2011 (Unaudited) and June 30, 2010

				March 31,		June 30,
				2011		2010
ASSETS				(Unaudited)		Note 1
Current Assets
	Cash and cash equivalents		$	1,417	$	8,686
	Accounts Receivable			45,283		11,282
	Inventory			37,651		62,437
		Total Current Assets		84,351		82,405
Property plant and equipment,
	net of accumulated depreciation			717,262		781,331
Other Assets
	Notes Receivable			40,000		40,000
	Deposits			18,036		18,036
		Total Other Assets		58,036		18,036

	TOTAL ASSETS		$	859,649	$	921,772

	LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
	Accounts payable and accrued expenses		$	157,863	$	125,230
	Settlement Agreements			17,472
	Credit Cards			-		46,495
	Bank Line of Credit			78,212		49,965
	Deferred Rent			6,211		9,221
	Current portion, long term debt			6,000		6,000
		Total Current Liabilities		265,758		236,911
Long Term Debt
	Obligation under capital lease			-		9,291
Other Liabilities
	Notes Payable			95,000		95,000
	Deferred Investments			104,000		114,000
	Shareholder Loans			54,000		52,000
		Total Other Liabilities		253,000		261,000
		Total Liabilities		518,758		507,202
Stockholders' Equity
	Common Stock, $0.001 par value, authorized
		200,000,000; issued and outstanding
		80,090,500 as at June 30, 2010
		102,438,650 as at March 31, 2011		102,439		80,091
	Additional paid-in capital			1,760,776		1,536,209
	Accumulated Deficit in the Development Stage			(866,893)		(570,823)
	Deficit			(655,431)		(614,536)
	Minority Interest (Note 1)			-		(16,371)
		Total Stockholders' Equity		340,891		414,570

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	859,649	$	921,772

The accompanying notes are an integral part of these financial statements.


EXTREME GREEN TECHNOLOGIES INC.
CONSOLIDATED STATEMENT OF OPERATIONS
For the six months and three months ended March 31, 2011 and 2010
(Unaudited)

			For the three months ended				For the nine months ended
			March 31,				March 31,
			2011		2010		2011		2010

Revenues		$	171,121	$	18,201	$	110,088	$	45,382
Cost of Sales			139,050		19,910		93,798		58,317

Gross Profit			32,071		(1,709)		16,290		(12,935)

Selling, General and Administrative
	Expenses
	Advertising and Marketing		17,608		4,729		7,679		7,886
	Occupancy Costs		156,606		8,654		101,164		47,328
	Salaries and wages		187,290		40,191		119,083		54,899
	Consulting		-		-		-		27,055
	Legal and professional fees		36,577		2,319		29,799		4,624
	Other selling, general and
	administrative expenses		193,165		47,484		72,885		123,437

Total Expenses			591,246		103,377		330,610		265,229

Net Income before other income
	and expenses		(559,175)		(105,086)		(314,320)		(278,164)

Other Income and expenses
	Interest income		3,495		-		1,517		-
	Interest expense		(4,617)		(3,165)		(7,791)		(9,118)
			(1,122)		(3,165)		(6,274)		(9,118)

Net Income, at 100%			(560,297)		(108,251)		(320,594)		(287,282)
Minority interest (Note 1)

			(560,297)		(108,251)		(320,594)		(287,282)

		$	(0.01)	$	(0.00)	$	(0.00)	$	(0.00)

			87,539,883		80,090,500		82,573,627		79,740,500

The accompanying notes are an integral part of these financial statements.


EXTREME GREEN TECHNOLOGIES INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
For the period from February 28, 2008 (Inception) to December 31, 2010
(Unaudited)

					Additional
	Common Stock				Paid-in		Accumulated
	Shares		Amount		Capital		Deficit		Total
Balances Feb. 28, 2008 (Inception)	-	$	-	$	-	$	-	$	-
Common stock issued for cash	70,000,000		70,000		(67,500)		-		2,500
Common stock for services	4,130,000		4,130		3,960		-		8,090
Net. Loss for the period	-		-		-		(55,100)		(55,100)
Balances, June 30, 2008	74,130,000		74,130.00		(63,540.00)		(55,100.00)		(44,510.00)

Common stock issued for cash	5,260,500		5,261		32,314		-		37,575
Net loss for the year	-		-		-		(26,506)		(26,506)
Balances, June 30, 2009	79,390,500		79,391.00		(31,226.00)		(81,606.00)		(33,441.00)

Common stock for services	700,000		700		4,300		-		5,000
Restatement of equity per reorganization	-		-		1,563,135		(1,076,497)		486,638
Net loss for the year	-		-		-		(43,627)		(43,627)
Balances, June 30, 2010	80,090,500		80,091.00		1,536,209.00		(1,201,730.00)		414,570.00

Common stock issued pursuant
to plan of reorganization	16,550,150		16,550		(16,550)		-		-
Adjustments per reorganization	-		-		189,915		-		189,915
Shares issued in exchange	4,658,000		4,658		(4,658)		-		-
Sale of stock for cash	1,140,000		1,140		55,860		-		57,000
Net loss for the nine months	-		-		-		(320,594)		(320,594)

Balances, March 31, 2011	102,438,650	$	102,439	$	1,760,776	$	(1,522,324)	$	340,891

The accompanying notes are an integral part of these financial statements.


EXTREME GREEN TECHNOLOGIES INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the nine months ended March 31, 2011 and 2010
(Unaudited)

					2011		2010
Cash Flows from Operating Activities
	Net Income after taxes			$	(320,594)	$	(287,282)
	Adjustments to reconcile net loss to net cash
		used by operations:
			Depreciation		50,129		74,013
			Non cash issue of stock for services		-		-
			Non cash issue of stock for debt		-		-
	Change in operating assets and liabilities:				-		-
			Accounts Receivable		(34,100)		6,403
			Accounts Payable and accrued expenses		12,114		31,954
			Current portion long term debt		-		-
			Credit Cards		(46,495)		6,442
			Inventory		36,150		170
			Deferred Rent		(2,254)		(692)
			Deferred Payroll		(8,000)		8,000
			Settlement Agreements		95,684		-
			Subscriptions received		-		50,000
			Net Cash provided by Operating Activities		(217,366)		(110,992)
Cash Flows from Investing Activities
	Purchase/Retirement of Property and Equipment				(11,525)		(13,940)
	Repayment/reclassification of capital lease				(15,291)		(949)
	Sale of stock for cash				57,000		-
	Proceeds of deferred investments				50,000		-
	Amortization of deferred investments				(60,000)		-
	Reorganization adjustments				231,778		(22,000)
		Net Cash (used by) Investing Activities			251,962		(36,889)
Cash Flows from Financing Activities
	Bank Line of Credit				(49,965)		-
	Proceeds of note payable				-		95,000
	Proceeds of stockholder loans				8,000		52,000
			Net Cash (used by) Financing Activities		(41,965)		147,000

Net increase (decrease) in cash					(7,369)		(881)
Minority Interest
Cash and cash equivalents, beginning of period					8,785		4,501

Cash and cash equivalents, end of period				$	1,416	$	3,620

Supplemental disclosure of cash flow information
		Income taxes paid		$	800	$	800
		Interest paid		$	-	$	-

The accompanying notes are an integral part of these financial statements.

Extreme Green Technologies Inc.

(F.K.A. Book Merge Technologies Inc.)

Notes to Consolidated Financial Statements

(Unaudited)

For the nine months ended

March 31, 2011

Organization and Nature of Operations

Presentation

On October 11, 2010 the Company, as Book Merge Technology, Inc, (BMT), entered into a plan of reorganization with Extreme Green Technologies Inc. (EGT) The plan was for EGT stockholders to swap their stock for BMT stock on a 2 for 1 basis, giving BMT control. EGT would be wound up and operations conducted under BMT. BMT would be renamed Extreme Green Technologies. The effect is a reverse merger, wherein BMT, (the shell), is the surviving company and legal acquirer whereas EGT, (the operating company), is the accounting acquirer. Accordingly, operations of the entity for the nine months ended March 31, 2011 are reported as those of EGT. Operations for the prior nine months ended March 31, 2010 are presented as those of EGT for a more relevant comparative. BMT has changed its name to Extreme Green Technologies, Inc.

Organization

The Company F.K.A. Book Merge Technology, Inc. was incorporated February 28, 2008 In the State of Nevada as Big West Environmental, Inc. The Company intended to enter into the sale and distribution of solar PV panels. The Company has devoted substantially all its efforts to business planning and development since inception. The Company has realized no revenue from it s planned business purpose. After evaluation of current opportunities, the Company entered into an agreement with EGT on October 11, 2010 to enter the bio fuel industry. The Company changed its name to Extreme Green Technology Inc.

The original Extreme Green Technology Inc, dba Extreme Biodiesel, (FKA Ryan Enterprises, Inc.) was incorporated under the laws of the State of Nevada on December 23, 2003. Its purpose was to develop, market and commercialize bio-diesel fuel, bio-diesel processors and related products. The Company has the relevant licenses for bio diesel production in California.

Current Business of the Company

On January 1, 2008 the original Extreme Green Technologies Inc. (EGT), a private California corporation, purchased an existing business, Extreme Biodiesel, which had, since 2004, been manufacturing home biodiesel processors. In February, 2008 EGT moved to an 11,400 square foot building at 1560 Maple Street, Corona, California to set up a licensed bio diesel refinery and factory for refining diesel oil and manufacturing bio diesel processors. A spike in fuel prices in 2008 created a demand for EGT’s processors that propelled processor sales in that year to $885,825. The refinery at the outset was able to produce 2,000 gallons per day and is being expanded.

On October 11, 2010 the Company entered into a Plan of Reorganization with Extreme Green Technologies, Inc. (EGT), whereby Book Merge was to acquire a minimum of 51% controlling interest in EGT. The plan was for all EGT stockholders to swap their stock for BookMerge stock on a 2 for 1 basis, (2 EGT for 1 BookMerge), giving BookMerge control. EGT would be wound up and operations conducted under BookMerge. BookMerge would assume the name Extreme Green Technologies. The effect is a reverse merger, wherein BookMerge, (the shell), is the surviving company and legal acquirer whereas EGT, (the operating company), is the accounting acquirer. Operations of the entity are reported as those of EGT.

On October 11, 2010 BookMerge had achieved a 51% interest in EGT, gaining control. The reverse acquisition was effected on that date. The reorganization continued with stock swaps and was completed by March 31, 2011. EGT became a subsidiary of BookMerge. BookMerge has changed its name to Extreme Green Technologies, Inc.

Summary of Significant Accounting Policies

Unaudited Interim Financial Statements

The accompanying unaudited financial statements have been prepared by the Company, pursuant to the rules and regulations of the Securities Exchange commission (the “SEC”) as applicable to smaller reporting companies, and generally accepted accounting principles for interim accounting reporting. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted pursuant to such rules and regulations. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and footnotes included in the Company’s Annual Report on Form 10K. The results of the nine month period ended March 31, 2011 are not necessarily indicative of the results to be expected for the full year ending June 30, 2011.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Significant estimates made by management are, among others, realizability of long-lived assets, deferred taxes and stock option valuation.

Revenue Recognition

Revenue is recognized for diesel fuel sales at the plant per typical point-of-sale systems, i.e. when the customer takes delivery and payment is received. The price of diesel fuel is updated daily. Revenue is recognized for mini refineries and services when the terms of the customer order, including price and method of payment, has been approved by both parties and delivery has been made or services rendered.

The Company has been an ongoing concern since January 1, 2008 and has ongoing sales since inception to the present. The Company generated revenue of $110,088 in the nine months ended March 31, 2011 ($45,382 in 2010).

Cash and equivalents

Cash and equivalents include investments with initial maturities of three months or less.

Fair Value of Financial Instruments

The Financial Accounting Standards Board issued ASC (Accounting Standards Codification) 820-10 (SFAS No. 157), “Fair Value Measurements and Disclosures" for financial assets and liabilities. FASB ASC 820-10 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. FASB ASC 820-10 defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. FASB ASC 820-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required by the standard that the Company uses to measure fair value:

Level 1: Quoted prices in active markets for identical assets or liabilities

Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company has classified its assets and liabilities into these levels depending upon the data relied upon to determine the fair values. The following fair value hierarchy table represents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2010:


		Quoted Prices		Significant
		in Active		Other		Significant
		Markets for		Observable		Unobservable		Balance as of
		Identical Assets		Inputs		Inputs		March 31,
		(Level 1)		(Level 2)		(Level 3)		2011
Assets
Note Receivable	$	40,000	$	-	$	-	$	40,000
Deposits		18,036		-		-		18,036
	$	58,036	$	-	$	-	$	58,036
Liabilities

Bank Line of Credit	$	78,212	$	-	$	-	$	78,212
Notes Payable		-		95,000		-		95,000
Deferred Investments		-		104,000		-		104,000
Stockholder Loans		-		52,000		-		52,000
	$	78,212	$	251,000	$	-	$	329,212

Income Taxes

The Company utilizes FASB ASC 740, “Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company generated a deferred tax credit through net operating loss carryforward.

Due to the inherent uncertainty in forecasts and future events and operating results, the Company has provided for a valuation allowance in amount equal to gross deferred tax assets resulting in no net deferred tax assets or liabilities for the periods audited.

Stock-based compensation

(FASB) ASC Topic 718, Stock Compensation (formerly FASB Statement 123R) requires generally that all equity awards granted to employees be accounted for at grant-date “fair value”. Fair value is equal to the underlying value of the stock for “full value” awards such as restricted stock and performance shares, and estimated using an option pricing model with traditional inputs for “appreciation” awards such as stock options and stock appreciation rights. There are special provisions for nonpublic companies that are intended to ease compliance with accounting for stock compensation.

Recent Accounting Pronouncements

In January 2010, the FASB issued ASU No. 2010-01, amending SFAS No. 168, “The FASB Accounting Standards Codification™ and the Hierarchy of Generally Accepted Accounting Principles.” This Standard codified in ASC 105 is being modified to include the authoritative and non-authoritative levels of GAAP. This amendment is effective for financial statements issued for interim and annual periods ending after September 15, 2009. ASU No. 2010-01 has no effect on the Company’s financial position, statements of operations, or cash flows at this time.

In January 2010, the FASB issued ASU No. 2010-08, “Technical Corrections to various Topics.” This Standard is being updated to eliminate outdated or inconsistent GAAP standards and to clarify the Boards original intent mainly with regards to derivatives and hedging. This is effective for the first reporting period (including interim periods) beginning after issuance. ASU No. 2010-08 has no effect on the Company’s financial position, statements of operations, or cash flows at this time.

In January 2010, the FASB issued ASU No. 2010-06, “Improving Disclosures about Fair Value Measurements” related to ASC Topic 820-10. This update requires new disclosures to; transfers in or out of Levels 1 and 2, activity in Level 3fair value measurements, Level of disaggregation, and disclosures about inputs and valuation techniques. This amendment will be effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. ASU No. 2010-06 has no impact on the Company’s results of operations, financial condition or cash flows.

In January, 2010, the FASB issued ASU 2010-06, Improving Disclosures about Fair Value Measurements. The standard amends ASC Topic 820, Fair Value Measurements and Disclosures to require additional disclosures related to transfers between levels in the hierarchy of fair value measurement. The standard does not change how fair values are measured. The standard is effective for interim and annual reporting periods beginning after December 15, 2009. As a result, it is effective for the Company in the first quarter of fiscal year 2010. The Company does not believe that the adoption of ASU 2010-06 will have a material impact on its financial statements.

In February 2010, the FASB issued ASU No. 2010-09, “Subsequent Events (ASC Topic 855), Amendments to Certain Recognition and Disclosure Requirements.” This Standard update requires a SEC Filer to (1) evaluate subsequent events through the date that the financial statements are issued or available to be issued, (2) defines “SEC Filer” as an entity that is required to file or furnish its financial statements with either the SEC or, with respect to an entity subject to Section 12(i) of the Securities Exchange Act of 1934, as amended, the appropriate agency under that Section, (3) not be bound to disclosing the date through which subsequent events have been evaluated, (4) note the definition of public entity is not longer defined nor necessary for Topic 855, (5) note the scope of the reissuance disclosure requirements is refined to include revised financial statements only. These Updates are effective for interim or annual periods ending after June 15, 2010. ASU No. 2010-09 has no effect on the Company’s financial position, statement of operations, or cash flows at this time.

Going Concern

The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern. The company experienced a loss of $320,594 in the nine months ended March 31, 2011, (loss of $287,282 in 2010). The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease development of operations.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish its plans to generate bio-diesel revenue from an expanded refinery. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount and classifications or liabilities or other adjustments that might be necessary should the Company be unable to continue as a going concern.

Development-Stage Company

The Company was considered a development-stage company to December 31, 2009. The Company had consistent production and sales over the previous two years, therefore as of January 1, 2010 was considered to have emerged from the development stage.

Basic and Diluted Net Loss Per Share

Net loss per share is calculated in accordance with FASB ASC 260, Earnings Per Share, for the period presented. Basic net loss per share is based upon the weighted average number of common shares outstanding. Diluted net loss per share is based on the assumption that all dilative convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

The Company has potentially dilutive securities outstanding as of March 31, 2011 in the form of convertible debt. However the conversion would be anti dilutive, since the Company is in a loss position, and was therefore not considered in the calculation of earnings per share.

The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations for the six months ended March 31, 2011 and 2010, respectively.

Numerator:


Basic and diluted net loss per share:		2010		2009
Net Loss	$	(320,594)	$	(287,282)

Denominator


Basic and diluted weighted average
number of shares outstanding	82,573,627	79,740,500

Basic and Diluted Net Loss Per Share


$	(0.00)	$	(0.00)

Notes Receivable,


	March 31,
	2010		2009
$	40,000	$	40,000

An advance of $40,000 on March 18, 2009 to Superior Service Recycling was made in a preliminary agreement to purchase Superior’s business. This business provides EGT with used vegetable oil for bio-diesel production. It is owned by Scott Brown, a stockholder and Technical Director of EGT. The Board of Directors has stated the intention of completing the transaction. The advance carries no interest or terms of repayment.

Property, Plant and Equipment


		March 31,
		2011		2010
Refinery	$	857,025	$	857,025
Leasehold Improvements		31,885		31,885
Vehicles		52,461		40,935
Furniture and fixtures		3,422		3,422
		944,793		933,267
Accumulated depreciation		(202,067)		(127,072)
	$	742,726	$	806,195

Property plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method with useful lives used in computing depreciation ranging from 6 to 10 years. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Expenditures for maintenance and repairs are charged to operations as incurred; additions, renewals and betterments are capitalized.

Bank Line of Credit


	March 31,
	2011		2010
$	78,212	$	49,965

The line of credit is funded by Bank of the West, carries interest at 4.75% and is payable upon demand. The rate is variable based on Bank of the West prime rate.

Obligation Under Capital Lease


	March 31,
	2011		2010
$	0	$	9,291

On February 28, 2008 Wells Fargo Bank funded a three year lease for a forklift with bargain purchase clause, which was capitalized to $23,380. Monthly payments of $631.39 were required. The implicit interest rate was 12.88%.

Notes Payable


	March 31,
	2010		2009
$	95,000	$	95,000

On November 11, 2009 EGT entered into a stock purchase agreement with Envirotek Inc., a Nevada holding company, which holds stock of entities engaged in alternative fuel production such as bio-diesel. Under the agreement, Envirotek was to acquire 51% of EGT stock, and to loan EGT $250,000 in stages. In November 2009 Envirotek advanced EGT $65,000 and a further 30,000 from January 28 to March 3^rd2010 under promissory notes. The $65,000 note carries no interest, requires no payments and matures January 20, 2013. On April 26, 2010 The Board of Directors rescinded the agreement with Envirotek Inc. This effectively ended the business relationship between the two companies. Envirotek subsequently ceased operations. The advances were classified as a non current liability pending renewed communication with Envirotek.

Deferred Investments


	March 31,
	2011		2010
$	104,000	$	0

On February 25, 2010 the Company signed an investment agreement with two individuals Steve Hayden III and Steve Hayden IV, wherein they deposited $ 107,000 into the Company in return for 25% of Net Profit over 24 months beginning June 30, 2010. Net Profit was defined as fuel sales less oil, delivery and processing costs, and taxes. The minimum return, royalty, was specified as $200,000. No royalty payments were payable under the agreement in 2010. The investment was amortized pro rata in 2011.

Stockholder Loans


		March 31,
		2011		2010
Robert Neuberger	$	0	$	2,000
Joseph Spadafore		50,000		50,000
Barankovitch		6,000		0
	$	56,000	$	52,000

Stockholder loans carry no interest, have no terms of repayment, and are non callable.

Repayment is discretionary. Both lenders are officers of the Company.

Capital Structure

On February *** 4,658,000 shares were issued in exchange for stock of the subsidiary, “old” Extreme Green Technologies Inc. (EGT) on a 2 for 1 basis: 2 shares of “old” EGT for 1 share of the Company.

On February **the Company sold 1,140,000 restricted shares for cash to three investors at 5 cents per share, realizing $57,000.

As at March 31, 2011 the Company was authorized to issue 200,000 common shares, of which 102,438,650 were issued and outstanding.

Commitments and Contingencies

The Company entered into a three year lease for an office and manufacturing building in Corona, California on February 15, 2008 at the rate of $8,050 per month. Renewal of the lease is under negotiation as at March 31, 2011.

Legal Proceedings

There were no legal proceedings against the Company with respect to matters arising in the ordinary course of business. Neither the Company nor any of its officers or directors is involved in any other litigation or is involved either as plaintiffs or defendants, and have no knowledge of any threatened or pending litigation against them or any of the officers or directors

Subsequent Events

Events subsequent to March 31, 2011 have been evaluated through April 12, 2011, the date these statements were available to be issued, to determine whether they should be disclosed to keep the financial statements from being misleading. Management found no subsequent events to be disclosed.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This Form 10-Q includes "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 or incorporated by reference in this Form 10-Q which address activities, events or developments which the Company expects or anticipates will or may occur in the future, including such things as future capital expenditures (including the amount and nature thereof); finding suitable merger or acquisition candidates; expansion and growth of the Company's business and operations; and other such matters are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. However, whether actual results or developments will conform with the Company's expectations and predictions is subject to a number of risks and uncertainties, including general economic, market and business conditions; the business opportunities (or lack thereof) that may be presented to and pursued by the Company; changes in laws or regulation; and other factors, most of which are beyond the control of the Company.

These forward-looking statements can be identified by the use of predictive, future-tense or forward-looking terminology, such as "believes," "anticipates," "expects," "estimates," "plans," "may," "will," or similar terms. These statements appear in a number of places in this Filing and include statements regarding the intent, belief or current expectations of the Company, and its directors or its officers with respect to, among other things: (i) trends affecting the Company's financial condition or results of operations for its limited history; (ii) the Company's business and growth strategies; and, (iii) the Company's financing plans. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Such factors that could adversely affect actual results and performance include, but are not limited to, the Company's limited operating history, potential fluctuations in quarterly operating results and expenses, government regulation, technological change and competition.

Consequently, all of the forward-looking statements made in this Form 10-QSB are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequence to or effects on the Company or its business or operations. The Company assumes no obligations to update any such forward-looking statements.

GENERAL DESCRIPTION OF BUSINESS

Extreme Green Technologies, Inc. operation is to develop, market and commercialize bulk bio-diesel fuel, home bio-diesel processors and increase capacity of the related waste vegetable oil and brown grease inceptor/grease trap cleaning and collection areas of EGT. EGT's mission is to create awareness and provide a cost-effective, high-quality alternative diesel fuel, create "green" jobs, reduce the environmental impact of fossil fuels and diminish US reliance on foreign oil.

With the closing of the acquisition BookMerge plans to secure sufficient capital to fund the operation of Extreme Biodiesel. Extreme Green Technologies, Inc. dba Extreme Biodiesel (EGT) was formed on October 19, 2007 as a Nevada corporation qualified to do business in California. EGT was formed to develop market and commercialize bulk bio-diesel fuel, personal biodiesel processors and related products.

EGT’s mission is to satisfy the biodiesel demand and eliminate US reliance on foreign oil, reduce the environmental impact of fossil fuels, avoid petroleum price volatility, create “green” jobs, reduce transportation costs for goods, and help create a self-sustaining fuel system in the USA.

EGT currently has an existing fully licensed and permitted bio-diesel production facility in Corona, CA capable of producing up to 4,000 gallons and is plant is expandable to 20,000 gallons per day of bio-diesel fuel from virgin and waste vegetable oil. EGT has completed IRS Fuel Tax registration requirements for fuel tax credits and rebates, obtained the difficult State of California Developmental Fuel Variance License, State of California Board of Equalization excise tax registration, State of California Department of Food and Agriculture Rendering and Transportation licenses along with city permitting and licensing for the large refinery and home processor sales. Final EPA RFS II registration for ASTM Certification is pending. The company currently employs five employees and two independent contractors.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

The Company has a limited operating history upon which an evaluation of the Company, its current business and its prospects can be based. The Company's prospects must be considered in light of the risks, uncertainties, expenses and difficulties frequently encountered by companies in their early stages of development. Such risks include inadequate funding the company's inability to anticipate and adapt to a developing market, the failure of the company's infrastructure, changes in laws that adversely affect the company's business, the ability of the Company to manage its operations, including the amount and timing of capital expenditures and other costs relating to the expansion of the company's operations, the introduction and development of different or more extensive communities by direct and indirect competitors of the Company, including those with greater financial, technical and marketing resources, the inability of the Company to attract, retain and motivate qualified personnel and general economic conditions.

The Company expects that its operating expenses will increase significantly, especially as it implements its business plan. To the extent that increases in its operating expenses precede or are not followed by commensurate increases in revenues, or that the Company is unable to adjust operating expense levels accordingly, the Company's business, results of operations and financial condition would be materially and adversely affected. There can be no assurances that the Company can achieve or sustain profitability or that the Company's operating losses will not increase in the future.

RESULTS OF OPERATIONS

The Company has achieved no significant revenue or profits to date, and the Company anticipates that it will continue to incur net losses for the foreseeable future. The Company incurred a net loss of approximately $560,297 for the three months ended Mar. 31, 2011, compared with a net loss of $108,251 for the three months ended March 31, 2010.

LIQUIDITY AND CAPITAL RESOURCES

Since its inception the Company has had limited operating capital, and has relied heavily on debt and equity financing.

The financial statements as of and for the period ended on June 30, 2010 expressed their substantial doubt as to the Company's ability to continue as a going concern. Without additional capital, it is unlikely that the Company can continue as a going concern. The Company plans to raise operating capital via debt and equity offerings. However, there are no assurances that such offerings will be successful or sufficient to fund the operations of the Company. In the event the offerings are insufficient, the Company has not formulated a plan to continue as a going concern. Moreover, if such offerings are successful, they may result in substantial dilution to the existing shareholders.

CRITICAL ACCOUNTING POLICIES

In Financial Reporting release No. 60, "CAUTIONARY ADVICE REGARDING DISCLOSURE ABOUT CRITICAL ACCOUNTING POLICIES" ("FRR 60"), the Securities and Exchange Commission suggested that companies provide additional disclosure and commentary on their most critical accounting policies. In FRR 60, the SEC defined the most critical accounting policies as the ones that are most important to the portrayal of a company's financial condition and operating results, and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, our most critical accounting policies include: non-cash compensation valuation that affects the total expenses reported in the current period and the valuation of shares and underlying mineral rights acquired with shares. The methods, estimates and judgments we use in applying these most critical accounting policies have a significant impact on the results we report in our financial statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is not exposed to market risk related to interest rates or foreign currencies.

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934 , as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our president (also our principal executive officer) and our secretary, treasurer and chief financial officer (also our principal financial and accounting officer) to allow for timely decisions regarding required disclosure.

As of March 31, 2011 we carried out an evaluation, under the supervision and with the participation of our president (also our principal executive officer and our chief financial officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our President and Chief Financial Officer concluded that our disclosure controls and procedures were effective in providing reasonable assurance in the reliability of our corporate reporting as of the end of the period covered by this Quarterly Report.

CHANGES IN INTERNAL CONTROLS.

There was no change in our internal controls or in other factors that could affect these controls during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is not a party to any legal proceedings.

ITEM 1A. RISK FACTORS

There are no material changes in the risk factors set forth in the Company’s Form 8K filed Jan. 26, 2011.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

In February 2011, 4,658,000 shares were issued in exchange for stock of the subsidiary, “old” Extreme Green Technologies Inc. (EGT) on a 2 for 1 basis: 2 shares of “old” EGT for 1 share of the Company.

In February 2011, the Company sold 1,140,000 restricted shares for cash to three investors at 5 cents per share, realizing $57,000.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

The following documents are included or incorporated by reference as exhibits to this report:


Exhibit Number	Description
31.1	Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(b) REPORTS ON FORM 8-K

None.

SIGNATURES

In accordance with Section 13 or 15 (d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: April 18, 2011


	BookMerge Technologies, Inc.
	Registrant


	By: /s/ Richard Carter
	Richard Carter Chairman of the Board Chief Executive Officer