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GREEN 4 MEDIA, INC. - 10-K - Management's Discussion and Analysis of Financial Condition and Results of Operations
[November 29, 2012]

GREEN 4 MEDIA, INC. - 10-K - Management's Discussion and Analysis of Financial Condition and Results of Operations

(Edgar Glimpses Via Acquire Media NewsEdge) The following discussion should be read in conjunction with our consolidated audited financial statements and the related notes that appear elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute report, particularly in the section entitled "Risk Factors" beginning on page 7 of this annual report.

Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.

11 -------------------------------------------------------------------------------- Executive Summary We have developed a web-based business offering eco-sustainable marketing and advertising solutions to prospects wishing to emphasize they care about the environment with the use of natural and sustainable materials. The Company is virtual in nature, meaning that employees and contractors will primarily work from home. Our services are highly specialized and emphasize creating campaigns for our clients that focus on communicating their brand through sustainable and natural mediums. We also offer professional web and graphic designers to incorporate our client's green message across various mediums. Another aspect of our plan is to better educate our clients and empower them to understand the value of supporting environmental issues and minimizing their media choices' environmental impact.

Strategic Initiatives Fully optimized Green 4 Media Website: We have launched our fully SEO-friendly website. The site has been optimized to rank high on Google, Bing, and Yahoo organic searches by utilizing link-earning and building with partner websites and blogs, and creating a social media presence to promote the value of creating 100% environmentally sustainable messages and advertisements, as well as building brand awareness and loyalty.

Internet Marketing: We will invest in a Google Adwords / Paid Advertising Campaign, along with a Bing Pay-per-Click Campaign, both including thoroughly researched keywords to drive traffic to our site. Our online marketing efforts include a Social Media Marketing Campaign, with profiles on the major Social Media Platforms: Facebook, Twitter, YouTube and Pinterest. Video Marketing (i.e., YouTube) is especially valuable in delivery of our services, providing the immediate, visual representation of our eco-sustainable marketing campaigns.

Mobile / Smart Phone Advertising: Green 4 Media is deeply involved in an effort to expand our services to include smart phone marketing. The exponential growth of smart phone use and its related marketing potential is unprecedented, and Green 4 Media is now positioned to capitalize on this trend. Green 4 Media is exploring the creation of specially designed mobile websites that perform exclusively on iOS, Blackberry OS and Android Systems. We are currently working on launching these new mobile sites by January 2013.

Results of Operations The following summary of our results of operations should be read in conjunction with our audited financial statements for the year ended August 31, 2012 and 2011.

Our operating results for the year ended August 31, 2012 and the period from inception (June 8, 2011) to August 31, 2011, are summarized as follows: From Year Ended June 8, 2011 to August 31, August 31, 2012 2011 Revenue $ 25,419 $ - Expenses $ 69,766 $ 1,634 Net Loss $ (44,347 ) $ (1,634 ) Revenue The Company earned its initial revenues starting in the second quarter of this fiscal year ended August 31, 2012. The revenues were from the sale of eco-friendly, print-free advertising and marketing services, Search Engine Optimization (Organic/Unpaid Advertising), Adwords Pay-per-Click Advertising, Facebook Pay-per-Click Advertising and viral Social Media Marketing campaigns; and were recognized upon the completion of these programs. We earned revenues of $25,419 for the year ended August 31, 2012 compared to revenues of $0 for the period ended August 31, 2011. Increased revenues in 2012 can be attributed to increased awareness of Green 4 Media's services and expansion of our marketing efforts to new customers. We anticipate revenues to stay consistent in the upcoming fiscal year 2013.

12 -------------------------------------------------------------------------------- Expenses Our total expenses for the year ended August 31, 2012 and period ended August 31, 2011, are outlined in the table below: From Year Ended June 8, 2011 to August 31, August 31, 2012 2011 Selling, general and administrative $ 23,035 $ 996 Professional fees $ 46,731 $ 638 Total $ 69,766 $ 1,634 Liquidity and Financial Condition Working Capital At At August 31, August 31, 2012 2011 Change Current Assets $ 30,151 $ 8,766 $ 21,385 Current Liabilities $ 8,632 $ 400 $ 8,232 Working Capital (deficit) $ 21,519 $ 8,366 $ 13,153 Cash Flows Year Ended Year Ended August 31, August 31, 2012 2011Net Cash Used in Operating Activities $ (51,337 ) $ (1,234 ) Net Cash Used by Investing Activities $ - $ - Net Cash Provided by Financing Activities $ 57,175 $ 10,000 Net Increase in Cash During the Period $ 5,838 $ 8,766 We will require additional funds to fund our budgeted expenses in the future.

These funds may be raised through equity financing, debt financing, or other sources, which may result in further dilution in the equity ownership of our shares. There is no assurance that we will be able to maintain operations at a level sufficient for an investor to obtain a return on their investment in our common stock. Further, we may continue to be unprofitable. Additionally, there is no assurance that any party will advance additional funds to us in order to enable us to sustain our plan of operations or to repay our liabilities.

Liquidity and Capital Resources We received our initial funding of $10,000 through the sale of common stock to Daniel Duval, who purchased 1,000,000 shares of common stock at $0.01 on June 9, 2011. In September 2011, we received $21,000 from 9 unrelated shareholders who purchased 210,000 shares of our common stock at $0.10 per share. From February to March 2012, we raised $36,500 from our post-effective amendment on Form S-1, from the sale of 365,000 shares to 24 unaffiliated investors. From inception until the date of this filing we have had limited operating activities. Our financial statements from inception (June 8, 2011) through the period ended August 31, 2011, reported revenues of $25,419 and a net loss of $45,981.

Growth of our operations will be based on our ability to internally finance from cash flow and raise equity and/or debt to increase sales and production. Our primary sources of liquidity are: (i) cash from sales of our services; and (ii) financing activities. Our cash balance as of August 31, 2012 was $14,604.

13 -------------------------------------------------------------------------------- Limited Operating History; Need for Additional Capital The report of our auditors on our audited financial statements for the fiscal year ended August 31, 2012, contains a going concern qualification as we have suffered losses since our inception. We have minimal assets and have not yet established an ongoing source of revenues sufficient to cover our operating costs and allow it to continue as a going concern. Unless and until we commence material operations and achieve material revenues, we will remain dependent on financings to continue our operations.

There is no historical financial information about us on which to base an evaluation of our performance. We are a development stage company and have not generated revenues from operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to the price and cost increases in and services.

At present, we do not have enough cash on hand to cover operating costs for the next 12 months.

While the officers and directors have generally indicated a willingness to provide services and financial contributions if necessary, there are presently no agreements, arrangements, commitments, or specific understandings, either verbally or in writing, between the officers and directors and Green 4 Media.

If we are unable to meet our needs for cash from either the money that we raised from our offering, or possible alternative sources, then we may be unable to continue, develop, and expand our operations.

We have no plans to undertake any product research and development during the next twelve months. There are also no plans or expectations to acquire or sell any plant or plant equipment in the first full year of operations.

Plan of Operation and Cash Requirements Green 4 Media began selling its services in February 2012. Our plan of action over the next twelve months is to continue to market and sell our services and raise additional capital financing as necessary to grow operations.

The success of our operations will be based on our ability to grow by financing the operation through internal cash flow or to raise funds through equity and/or debt financing to invest in marketing and sales of our services. The challenging markets for credit do create a condition where some of our marketing plans may have to be delayed if we are not able generate adequate capital. The availability of equity and/or debt financings remains uncertain.

We expect to continue a number of marketing initiatives that we started last quarter including the following: † Continued development of a fully optimized website, increasing the number of link-building and link-earning outreaches to blogs and partner sites that promote our eco-sustainable message † Embrace the use and expansion of mobile marketing technology † Google Adwords and Bing Pay-per-Click Advertising † Extensive Social Media Marketing including the leveraging of Facebook, Twitter, Pinterest, and YouTube † Facebook Pay-per-Click Advertising † Twitter Pay-per-Click Advertising † You Tube Videos Monetization (currently creating videos with still images of our campaigns) † Networking for sales leads at local technology events As our business is a marketing and advertising company we are able to complete most of our marketing initiatives without incurring additional outside expenses by completing the work internally hence being able to keep our advertising and marketing costs to a minimum. Over the next 12 months, we anticipate that the company will require funds of approximately $25,000 to meet our working capital requirements.

14 -------------------------------------------------------------------------------- In the event that we need additional funds in addition to the cash on hand, we will endeavor to proceed with our plan of operations by locating alternative sources of financing. Although there are no written agreements in place, one form of alternative financing that may be available to us is self-financing through contributions from the officers and directors. While the officers and directors have generally indicated a willingness to provide services and financial contributions if necessary, there are presently no agreements, arrangements, commitments, or specific understandings, either verbally or in writing, between the officers and directors and Green 4 Media.

We do not anticipate hiring any staff during the next 12 months of operation, and will rely on the services of our officers and directors and outside contractors.

As a result of these initiatives if we are unable to increase sales and cash flow we may not have sufficient working capital to implement our strategy and we will be forced to scale down our business plan. Over time this could cause us to curtail or suspend our operations and may eventually cause our business to fail.

Going Concern As of August 31, 2012, our company has an annual loss of $44,347 and an accumulated deficit of $45,981. Our company intends to fund operations through operational cash flow and equity/debt financing arrangements. These sources may be insufficient to fund its capital expenditures, working capital and other cash requirements for the future. In response to these problems, management intends to raise additional funds through public or private placement offerings. These factors, among others, raise substantial doubt about our company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Off-Balance Sheet Arrangements We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Critical Accounting Policies 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 estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company's periodic filings with the Securities and Exchange Commission include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could affect the financial statements and future operations of the Company.

Cash and Cash Equivalents Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had $14,604 and $8,766 in cash and cash equivalents at August 31, 2012 and 2011, respectively.

Start-Up Costs In accordance with ASC 720, "Start-up Costs", the Company expenses all costs incurred in connection with the start-up and organization of the Company.

Accounts Receivable 15 -------------------------------------------------------------------------------- Accounts receivable consist of charges for service provided to customers. An allowance for doubtful accounts is considered to be established for any amounts that may not be recoverable, which is based on an analysis of the Company's customer credit worthiness, and current economic trends. Based on management's review of accounts receivable, no allowance for doubtful accounts was considered necessary. Receivables are determined to be past due, based on payment terms of original invoices. The Company does not typically charge interest on past due receivables.

Revenue Recognition The Company recognizes revenue from the sale of services in accordance with ASC 605, "Revenue Recognition." Revenue consists of internet marketing services; focusing on website design, search engine optimization, and viral social media marketing. Sales income is recognized only when all of the following criteria have been met: i) Persuasive evidence for an agreement exists; ii) Service has been provided; iii) The fee is fixed or determinable; and iv) Revenue is reasonably assured.

Recent Accounting Pronouncements Management has considered all recent accounting pronouncements issued since the last audit of our consolidated financial statements. The Company's management believes that these recent pronouncements will not have a material effect on the Company's consolidated financial statements.

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