Financials

 

CONDENSED CONSOLIDATED BALANCE SHEETS – USD ($)
Sep. 30, 2017
Dec. 31, 2016
Current assets
Cash $ 123,292 $ 162,795
Accounts Receivable 223,396 157,013
Prepaid Expenses and Other Current Assets 71,727 132,950
Inventories 984,522 1,127,072
Total current assets 1,402,937 1,579,830
Fixed Assets, net 94,382 99,001
Intangible Assets, net 1,231,776 967,114
Goodwill 502,823
Tradenames 300,000 150,000
Other Assets 49,497 184,400
Total Assets 3,581,415 2,980,345
Current Liabilities
Accounts payable and Accrured Expense 525,308 654,140
Accrued Interest 50,347 11,111
Accrued Interest to Related Party 16,550 5,592
Premium Finance Loan Payable 53,643
Deferred Rent 16,692
Other Current Liabilities 16,237
Note Payable 926,766 500,000
Total Current Liabilities 1,551,900 1,224,486
Long Term Debt to Related Parties, net of debt discount of $887,855 and $389,095 1,147,145 185,905
Total Liabilities 2,699,045 1,410,391
Commitments and contingencies (See Note 9)
Shareholders’ Equity
Common stock, par value $0.01, 324,000,000 shares authorized, 41,168,864 issued and outstanding and 44,901,531 issued and outstanding, respectively 461,689 449,016
Additional paid-in capital 11,343,468 9,944,744
Accumulated Deficit (10,928,787) (8,824,806)
Total shareholders’ equity 882,370 1,569,954
Total liabilities and shareholders’ equity 3,581,415 2,980,345
Series A Preferred Stock [Member]
Shareholders’ Equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 600,000 and 100,000 shares issued and outstanding 1,000 1,000
Series B Preferred Stock [Member]
Shareholders’ Equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 100,000 and 100,000 shares issued and outstanding
Series C Preferred Stock [Member]
Shareholders’ Equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 100,000 and 100,000 shares issued and outstanding
Series D Preferred Stock [Member]
Shareholders’ Equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 100,000 and 100,000 shares issued and outstanding
Series E Preferred Stock [Member]
Shareholders’ Equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 600,000 and 100,000 shares issued and outstanding  5000
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) – USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017 Sep. 30, 2016 Sep. 30, 2017
Sep. 30, 2016
Income Statement [Abstract]
Product Sales $ 589,402 $ 292,235 $ 1,713,688 $ 976,056
Revenues from Advertising 131,223 113,502 334,856 313,266
Total revenues 720,625 405,737 2,048,544 1,289,322
Cost of sales – Product 387,360 229,391 1,116,465 732,536
Cost of Revenues – Advertising 4,396 826 16,758 5,202
Gross profit 328,869 175,520 915,321 551,584
Selling, general and administrative expenses 801,307 686,802 2,750,275 2,205,855
Loss from operations (472,438) (511,282) (1,834,954) (1,654,271)
Other income (expense)
Interest income 232 11 451 21
Interest expense 20,883 (48,868)
Interest expense – related party (95,478) (297,130) (220,610) (335,015)
Total other income (expense) (74,363) (297,119) (269,027) (334,994)
Net loss before income taxes (546,801) (808,401) (2,103,981) (1,989,265)
Income taxes
Net loss (546,801) (808,401) (2,103,981) (1,989,265)
Preferred stock dividends
Series A, Series B, Series C Series D and Series E preferred stock 1,122 60,339 3,849 278,525
Total preferred stock dividends 1,122 60,339 3,849 278,525
Net loss attributable to common shareholders $ (547,923) $ (868,740) $ (2,107,830) $ (2,267,790)
Basic and diluted net loss per share $ (0.01) $ (0.02) $ (0.05) $ (0.06)
Weighted average shares outstanding – basic and diluted 45,126,811 40,848,279 44,973,345 38,220,591
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) – USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:
Net loss $ (2,103,981) $ (1,989,265)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation 18,925 10,025
Amortization of debt discount 116,863 305,115
Amortization 227,418 186,007
Stock option compensation expense 95,821 107,193
Common stock issued for services 25,860 64,110
Product refund reserve 12,642
Changes in operating assets and liabilities:
Accounts receivable 35,663 (34,485)
Inventory 142,550 7,842
Prepaid expenses and other current assets 102,751 1,446
Accounts payable and accrued expense (194,163) 53,679
Accrued interest 39,236
Accrued interest – related party 10,958
Other current liabilities (557)
Deferred rents 16,692
Other assets 93,375 (118,436)
Net cash used in operating activities (1,372,589) (1,394,127)
Cash flows from investing activities:
Purchase of fixed assets (14,305) (35,036)
Purchase of websites (142,925)
Cash paid for acquisition, net of cash received (199,573)
Net cash used in investing activities (213,878) (177,961)
Cash flows from financing activities:
Proceeds from issuance of common and preferred stock 250,000 800,000
Repayments on insurance premium notes payable (53,643) (41,758)
Repayment of Notes Payable (109,393)
Long-term debt – Related parties 1,460,000 500,000
Net cash provided by financing activities 1,546,964 1,258,242
Net decrease in cash (39,503) (313,846)
Cash at beginning of period 162,795 416,187
Cash at end of period 123,292 102,341
Supplemental disclosure of cash flow information
Cash paid for Interest 92,783 25,367
Cash paid for Income taxes
Non-cash investing and financing activities
Premium finance loan payable recorded as prepaid 18,885 43,402
Payable for purchase of website 150,000
Conversion of convertible notes payable and accrued interest into common stock 603,600
Beneficial conversion of debt discount to additional paid-in capital 615,625 289,000
Discount recognized relative to website acquisition payable 32,732
Common stock issued for acquisition of Daily Engage Media 429,091
Notes payable issued for acquisition of Daily Engage Media $ 380,000

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