1090967--3/31/2008--GLOBAL_ENERGY

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{gas, price, oil}

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{property, intellectual, protect}

{control, financial, internal}

{product, market, service}

{cost, contract, operation}

{personnel, key, retain}

{acquisition, growth, future}

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Risks Related to Our Business We are a development stage company with a limited operating history, which makes us a speculative investment. We are unlikely to be able to continue as a going concern in the event we are unable to obtain additional financing. We may not be able to achieve the objectives set forth in our new business plan. Our business depends on proprietary technology that we may not be able to protect and may infringe on the intellectual property rights of others. We may not be able to generate revenues. Unanticipated problems in our engineering and construction operations may harm our business. We may lose our rights to the KDV technology. Our ability to produce and distribute commercial quantities of renewable diesel is unproven, which could have a detrimental effect on our ability to generate or sustain revenues. The strategic relationships upon which we may rely are subject to change. Our business may suffer if we are unable to attract and/or retain talented personnel. Competition may impair our success. Our management has identified a material weakness in internal control over financial reporting and we can provide no assurance that additional material weaknesses will not be identified in the future. The Company s failure to implement and maintain effective internal control over financial reporting could result in material misstatements in the financial statements. We may not effectively manage future growth. We or our sublicensees may not be able to build or acquire and operate manufacturing plants on an economically viable basis. Prices and markets for renewable diesel (such as renewable diesel fuel) are unpredictable and tend to fluctuate significantly. Engineering, constructing and operating the bio-fuel manufacturing plants is risky. Our technology may become ineffective or obsolete. As of December 31, 2007 we had approximately $3,000,000 in principal amount of debt, which, if we cannot repay when due, will permit the holders of this debt to seek renegotiation or bankruptcy alternatives, the result of which could terminate implementation of our business plan. We may not be able to satisfy our debt obligations due to fluctuations in the market price of our common stock. Our business may be adversely affected by regulatory and environmental risks. Insurance may be inadequate to cover our liabilities. Our business is subject to local legal, political, and economic factors. Because our officers and directors are located in non-U.S. jurisdictions, our shareholders may have no effective recourse against the management for misconduct and may not be able to enforce judgment and civil liabilities against our officers, directors, experts and agents. Risks Related to our Common Stock Shares of our common stock may continue to be subject to price fluctuations and illiquidity because our shares may continue to be thinly traded. The market price of our common stock is likely to be volatile. Future sales of common stock or warrants, or the prospect of future sales, may depress our stock price. We may not be able to attract the attention of brokerage firms for research and support. If we issue additional shares in the future, it will result in the dilution of our existing shareholders. Trading of our stock may be restricted by the Securities Exchange Commission's penny stock regulations, which may limit a stockholder's ability to buy and sell our stock. FINRA sales practice requirements may also limit a stockholder's ability to buy and sell our stock. Investors should not anticipate receiving cash dividends on our common stock. Carrigain Investment Ltd., or Carrigain, owns a significant portion of our common stock and may delay, defer or prevent us from taking actions that would be beneficial to our other stockholders.

Full 10-K form ▸

1090967--3/31/2008--GLOBAL_ENERGY_INC