Quarterly Report (10-q)

Date : 11/15/2019 @ 9:58PM
Source : Edgar (US Regulatory)
Stock : Evio, Inc. (QB) (EVIO)
Quote : 0.07166  -0.00834 (-10.43%) @ 9:02PM

Quarterly Report (10-q)

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2019

 

or

 

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _________ to __________.

 

Commission File Number: 000-12350

 

EVIO, INC.

(Exact name of registrant as specified in its charter)

 

Colorado   47-1890509
(State of Incorporation)   (I.R.S. Employer Identification No.)
     

2340 W. Horizon Ridge Pkwy, Suite 120

Henderson, NV

 

 

89052

(Address of principal executive offices)   (Zip Code)

 

(888) 544-3846

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
N/A   N/A   N/A

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for 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 has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 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. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer [  ] Non-accelerated filer [  ]
Accelerated filer [  ] Smaller reporting company [X]
    Emerging growth company [X]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

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 November 14, 2019, there were 29,288,776 shares of common stock outstanding, 0 shares of Series A Preferred Stock, 5,000,000 shares of Series B Preferred Stock convertible at any time into 5,000,000 shares of common stock, 500,000 shares of Series C Preferred Stock convertible at any time into 2,500,000 shares of common stock, 514,500 shares of Series D Preferred Stock convertible at any time into 1,286,250 shares of common stock.

 

 

 

     
 

 

EVIO, INC.

FORM 10-Q

QUARTERLY PERIOD ENDED JUNE 30, 2019

 

TABLE OF CONTENTS

 

PART I — FINANCIAL INFORMATION  
     
Item 1. Consolidated Financial Statements (Unaudited) 3
  Consolidated Balance Sheets as of June 30, 2019 (Unaudited) and September 30, 2018 3
  Consolidated Statements of Operations for the Three and Nine Months Ended June 30, 2019 and 2018 (Unaudited) 4
  Consolidated Statements of Cash Flows for the Nine Months Ended June 30, 2019 and 2018(Unaudited) 5
  Consolidated Statements of Stockholders Equity for the Three and Nine Months Ended June 30, 2019 and 2018 (Unaudited) 6
  Notes to Unaudited Consolidated Financial Statements 10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 29
  Critical Accounting Policies and Estimates 29
  Business of Registrant 30
  Results of Operations 31
  Liquidity and Capital Resources 34
Item 3. Quantitative and Qualitative Disclosures About Market Risk 37
Item 4. Control and Procedures 37
     
PART II — OTHER INFORMATION  
     
Item 1. Legal Proceedings 38
Item 1A. Risk Factors 38
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38
Item 3. Defaults Upon Senior Securities 38
Item 4. Mine Safety Disclosures 38
Item 5. Other Information 38
Item 6. Exhibits 38

 

2
 

 

PART I — FINANCIAL INFORMATION

 

ITEM 1 –FINANCIAL STATEMENTS

 

CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2019 AND SEPTEMBER 30, 2018

(UNAUDITED)

 

    June 30, 2019     September 30, 2018  
ASSETS                
Current assets:                
Cash and cash equivalents   $ 61,064     $ 81,736  
Accounts receivable, net of allowance of $164,617 and $414,475     331,346       234,178  
Prepaid expenses     63,135       45,940  
Other current assets     56,975       146,816  
Note receivable, current portion     538,904       100,000  
Total current assets     1,051,424       608,670  
Right of use assets     2,580,812       -  
Capital assets, net of accumulated depreciation of $324,257 and $123,854     1,485,254       411,241  
Assets not in service     -       455,540  
Land     212,550       212,550  
Property and equipment, net of accumulated depreciation of $897,441 and $520,437     3,221,601       3,525,772  
Security deposits     195,897       159,632  
Note receivable     -       1,200,000  
Prepaid expenses     120,993       63,582  
Intangible assets, net of accumulated amortization of $603,485 and $318,816     1,386,424       1,680,569  
Goodwill     6,008,526       6,037,404  
Total assets   $ 16,263,481     $ 14,354,960  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities:                
Accounts payable and accrued liabilities   $ 2,813,635     $ 1,546,617  
Client deposits     156,964       363,211  
Interest payable     952,563       416,459  
Capital lease obligation, current     981,875       677,030  
Derivative liability     1,120,966       1,181,2781  
Convertible notes payable, net of discounts of $792,040 and $753,557, respectively     3,310,592       1,678,265  
Loans payable, current, net of discounts $0 and $119,000, respectively     786,931       643,927  
Total current liabilities     10,123,526       6,506,787  
Convertible debentures, net of discounts of $3,484,269 and $4,043,836, respectively     1,716,955       1,153,164  
Lease liabilities     2,630,353       -  
Capital lease obligation, net of current     439,714       148,433  
Loans payable, net of current     642,018       1,193,781  
Convertible loans payable, related party, net of current     -       61,263  
Loans payable, related party, net of current and discounts of $39,302 and $51,971     1,562,322       1,348,793  
Total liabilities     17,114,888       10,412,221  
                 
Stockholders’ Equity:                

Series B convertible preferred stock, $0.0001 par value. 5,000,000 authorized; 5,000,000 shares issued and outstanding at June 30, 2019 and September 30, 2018

    500       500  

Series C convertible preferred stock, $0.0001 par value. 500,000 authorized; 500,000 shares issued and outstanding at June 30, 2019 and September 30, 2018

    50       50  

Series D convertible preferred stock, $0.0001 par value. 1,000,000 authorized; 349,500 and 552,500 shares issued and outstanding at June 30, 2019 and September 30, 2018

    35       55  

Common stock, $0.0001 par value. 1,000,000,000 authorized; 27,839,340 and 23,255,409 shares issued and outstanding at June 30, 2019 and September 30, 2018

    2,784       2,326  
Subscription Receivable     -       -  
Additional paid-in capital     24,576,290       21,495,621  
Retained earnings (accumulated deficit)     (26,858,124 )     (19,226,462 )
Accumulated other comprehensive income     (296,936 )     (263,985 )
Total stockholders’ equity     (2,575,401 )     2,008,105  
Noncontrolling interest     1,723,994       1,934,634  
Total equity     (851,407 )     3,942,739  
Total liabilities and stockholders’ equity   $ 16,263,481     $ 14,354,960  

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

3
 

 

EVIO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

 

   

Three Month Ended

June 30,

   

Nine Months Ended

June 30,

 
    2019     2018     2019     2018  
Revenues                        
Testing revenue   $ 1,098,310     $ 595,701     $ 3,020,727     $ 2,172,061  
Consulting revenue     3,000       38,637       3,000       141,453  
Total revenues     1,101,310       634,338       3,023,727       2,313,514  
                                 
Cost of revenue                                
Testing services     823,540       754,647       2,672,706       2,115,487  
Consulting services     -       4,729       -       93,721  
Depreciation and amortization     289,523       70,075       901,827       154,894  
Total cost of revenue     1,113,063       829,451       3,574,532       2,364,102  
                                 
Gross margin     (11,753 )     (195,113 )     (550,806 )     (50,588 )
                                 
Operating expenses:                                
Selling, general and administrative     1,486,539       1,989,753       4,206,841       5,023,122  
Depreciation and amortization     62,291       125,500       178,273       266,656  
Total operating expenses     1,548,830       2,115,253       4,385,114       5,289,778  
                                 
Income (loss) from operations     (1,560,583 )     (2,310,366 )     (4,935,920 )     (5,340,366 )
                                 
Other income (expense)                                
Interest income (expense), net     (592,089 )     (1,510,076 )     (3,049,386 )     (2,897,264 )
Other income (expense)     (178,549 )     -       (276,066 )     -  
Gain (loss) on settlement of debt     -       -       -       (56,093 )
Gain (loss) on change in fair market value of derivative liabilities     981,421       363,352       424,774       2,157,443  
Total other income (expense)     210,783       (1,146,724 )     (2,900,678 )     (795,914 )
Income (loss) before income taxes     (1,349,800 )     (3,457,090 )     (7,836,598 )     (6,136,280 )
                                 
Provision for income taxes (benefit)     2,735               5,704       -  
                                 
Net income (loss)     (1,352,535 )     (3,457,090 )     (7,842,302 )     (6,136,280 )
Net income (loss) attributable to noncontrolling interest     (49,257 )     (257,101 )     (210,640 )     (269,897 )
Net income (loss) attributable to EVIO, Inc. shareholders   $ (1,303,278 )   $ (3,199,989 )   $ (7,631,662 )   $ (5,866,383 )
                                 
Basic and diluted earnings (loss) per common share     (0.05 )     (0.18 )   $ (0.29 )   $ (0.39 )
                                 
Weighted-average number of common shares outstanding:                                
Basic and diluted     27,764,476       18,067,853       26,218,351       15,030,353  
                                 
Comprehensive loss:                                
Net income (loss)   $ (1,352,535 )   $ (3,457,090 )   $ (7,842,302 )   $ (6,136,280 )
Foreign currency translation adjustment     82,610               (32,951 )     -  
Comprehensive income (loss)   $ (1,269,925 )   $ (3,457,090 )   $ (7,875,253 )   $ (6,136,280 )

 

The accompanying notes are an integral part of the consolidated financial statements.

 

4
 

 

EVIO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

    Nine Months Ended June 30,  
    2019     2018  
Cash flows from operating activities of continuing operations:            
Net income (loss)   $ (7,842,302 )   $ (6,126,280 )
                 
Amortization of debt discount     2,241,279       2,561,024  
Common stock issued in exchange for fees and services     342,910       450,016  
Depreciation and amortization     1,080,100       421,550  
Loss on disposal of assets     64,095       -  
Loss on settlement of accounts payable     -       3,750  
Loss on settlement of debt     -       52,343  
Provision for doubtful accounts     49,835       53,454  
Stock based compensation     576,124       1,644,386  
Unrealized (gain) loss on derivative liability     (424,774 )     (2,157,443 )
Changes in operating assets and liabilities:                
Accounts receivable     (144,052 )     (54,989 )
Prepaid expenses     (74,605 )     165,787  
Other current assets     89,842       (71,400 )
Security deposits     (35,646 )     (467,614 )
Operating lease right of use assets     49,541       -  
Accounts payable and accrued liabilities     1,281,150       (323,907 )
Customer deposits and deferred revenues     (206,113 )     (17,313 )
Deposits, related party     -       (180,000 )
Interest payable     595,752       323,165  
Net cash provided by (used in) operating activities     (2,356,864 )     (3,733,471 )
                 
Cash flows from investing activities:                
Cash consideration for acquisition of business     -       (1,574,541 )
Notes receivable     761,096       -  
Purchase of fixed assets     (853,644 )     (883,512 )
Net cash provided by (used in) investing activities     (92,548 )     (2,458,053 )
                 
Cash flows from financing activities:                
Proceeds from issuance of common stock, net of issuance costs     592,000       2,041,501  
Proceeds from issuance of common stock purchase warrants, net of issuance costs     -       7,999  
Proceeds from issuance of convertible debentures     374,000       6,136,120  
Proceeds from issuance of convertible notes, net of issuance costs     1,078,732       250,000  
Proceeds from loans payable     2,718       -  
Proceeds from related party advances     144,193       -  
Proceeds (repayments) of capital leases     274,553       (58,103 )
Repayments of loans payable     (30,476 )     (612,531 )
Repayments of related party loans payable     (11,906 )     (246,526 )
Net cash provided by (used in) financing activities     2,423,814       7,518,460  
                 
Effect of exchange rates on cash and cash equivalents     4,927       (193,506 )
Net increase (decrease) in cash and cash equivalents     (20,671 )     1,133,430  
Cash and cash equivalents at beginning of period     81,735       121,013  
Cash and cash equivalents at end of period   $ 61,064     $ 1,254,443  
                 
Supplemental disclosure of cash flow information:                
Cash paid for interest     -       171,722  
Cash paid for income taxes     -       -  
                 
Supplemental disclosure of non-cash investing and financing activities:                
Conversion of convertible note and accrued interest into common stock     708,089       2,272,373  
Reclassification of derivative liability to additional paid in capital     -       2,342,112  
Settlement of account payable for common stock     -       18,750  
Common stock issued for settlement of note payable     15,000       162,000  
Common stock issued for settlement of related party note payable     -       62,500  
Conversion of Series D Preferred stock to common stock     -       70  
Debt discount recorded on convertible notes and debentures payable upon initial measurement of derivative liability     364,462       5,784,175  
Debt discounts recorded for beneficial conversion features on convertible debentures and notes payable     846,985       -  
Debt discounts recorded for original issue discounts on convertible debentures     -       472,480  
Equipment financed through capital leases     323,383       385,208  
Issuance of convertible notes payable and other obligations in connection with the acquisition of a business             1,100,000  
Sale and assumption of note payable and accrued interest     556,658       -  

 

The accompanying notes are an integral part of the consolidated financial statements.

 

5
 

 

EVIO, INC.

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Three and Nine Months Ended June 30, 2019 and 2018.

 

    Series B Preferred Stock     Series C Preferred Stock     Series D Preferred Stock     Common Stock    

Stock

Subscriptions

   

Additional

Paid-in

    Retained    

Accumulated

Other

Comprehensive

    Stockholders'     Noncontrolling     Total  
    Shares     Value     Shares     Value     Shares     Value     Shares     Value     Receivable     Capital     Earnings     Income     Equity     Interest     Equity  
                                                                                           
Balance, March 31, 2018     5,000,000     $ 500       500,000     $ 50       552,500     $ 55       16,068,505     $ 1,606     $ -     $ 12,925,709     $ (10,258,765 )   $ -     $ 2,669,155     $ 545,328     $ 3,214,483  
                                                                                                                         
Net income (loss)     -       -       -       -       -       -       -       -       -       -       (3,199,989 )     -       (3,199,989 )     (257,101 )     (3,457,090 )
Change in foreign currency translation     -       -       -       -       -       -       -       -       -       -       -       (317,132 )     (317,132 )     -       (317,132 )
Issuance of common stock in connection with the conversion of Series D preferred stock     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock in connection with sales made under private offerings     -       -       -       -       -       -       1,291,392       130       -       1,533,372       -       -       1,533,502       -       1,533,502  
Issuance of common stock in connection with the exercise of common stock purchase warrants     -       -       -       -       -       -       13,333       1       -       7,998       -       -       7,999       -       7,999  
Issuance of common stock as compensation to employees, officers and/or directors     -       -       -       -       -       -       140,000       14       -       272,548       -       -       272,562       -       272,562  

Issuance of common stock in exchange for consulting, professional

and other services provided

    -       -       -       -       -       -       15,000       2       -       10,805       -       -       10,807       -       10,807  
Issuance of common stock in satisfaction of debt issuances costs     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock in connection with the settlement of accounts payable     -       -       -               -               -               -       -       -       -       -       -       -  
Issuance of common stock in connection with the settlement of notes payable     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock in connection with the conversion of loans payable     -       -       -       -       -       -       2,121,233       212       -       1,493,573       -       -       1,493,785       -       1,493,785  
Issuance of common stock in connection with the conversion of debentures     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  -
Issuance of common stock in connection with the conversion of related party notes payable     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
                                                                                                                       
Issuance of common stock in connection with the conversion of interest payable     -       -       -       -       -       -       70,440       7       -       48,096       -       -       48,103       -       48,103  
Common stock options issued under employee equity incentive plan     -       -       -       -       -       -       -       -       -       321,898       -       -       321,898       -       321,898  
Reclassifcation of derivative liability to additional paid-in capital     -       -       -       -       -       -       -       -       -       1,459,658       -       -       1,459,658       -       1,459,658  
Recognition of beneficial conversion features related to convertible debt instruments     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Acquisition of equity interests in subsidiaries     -       -       -       -       -       -       -       -       -       -       -       -       -       1,962,095       1,962,095  
                                                                                                                         
Balance, June 30, 2018     5,000,000     $ 500       500,000     $ 50       552,500     $ 55       19,719,903     $ 1,972     $ -     $ 18,073,657     $ (13,458,754 )   $ (317,132 )   $ 4,300,348     $ 2,250,322     $ 6,550,670  

 

The accompanying notes are an integral part of the consolidated financial statements.

 

6
 

 

EVIO, INC.

Consolidated Statements of Changes in Stockholders' Equity (Unaudited)

For the Three Months Ended June 30, 2019

 

   

Series B

Preferred Stock
   

Series C

Preferred Stock
   

Series D

Preferred Stock
    Common Stock     Subscriptions     Additional
Paid-in
    Retained     Accumulated
Other
Comprehensive
    Total
Stockholders'
    Noncontrolling     Total  
    Shares     Value     Shares     Value     Shares     Value     Shares     Value     Receivable     Capital     Earnings     Income     Equity     Interest     Equity  
                                                                                           
Balance, March 31, 2019     5,000,000     $ 500       500,000     $ 50       349,500     $ 35       27,094,744     $ 2,709     $ (406,000 )   $ 24,278,681     $ (25,554,846 )   $ (379,546 )   $ (2,058,417 )   $ 1,773,251     $ (285,166 )
                                                                                                                         
Net income (loss)     -       -       -       -       -       -       -       -       -       -       (1,303,278 )     -       (1,303,278 )     (49,257 )     (1,352,535 )
Change in foreign currency translation     -       -       -       -       -       -       -       -       -       -       -       82,610       82,610       -       82,610  
Issuance of common stock in connection with the conversion of  Series D preferred stock     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Cash Received from common stock subscriptions     -       -       -       -       -       -                       406,000               -       -       406,000       -       406,000  
Issuance of common stock in connection with the exercise of common stock purchase warrants     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock as compensation to employees, officers and/or directors     -       -       -       -       -       -       25,000       3       -       12,872       -       -       12,875       -       12,875  
Issuance of common stock in exchange for consulting, professional and other services provided     -       -       -       -       -       -       688,017       69       -       149,682       -       -       149,751       -       149,751  
Issuance of common stock in satisfaction of debt issuances costs     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock in connection with the settlement
of accounts payable
    -       -       -       -       -       -       31,579       3       -       14,997       -       -       15,000       -       15,000  
Issuance of common stock in connection with the settlement of notes payable     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock in connection with the conversion of loans payable     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock in connection with the conversion of debentures     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock in connection with the conversion of related party notes payable     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock in connection with the conversion                                                                                                                        
Issuance of common stock purchase warrants in satisfaction of of interest payable     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock purchase warrants in satisfaction of debt issuances costs     -       -       -       -       -       -       -       -       -       (47,340 )     -       -       (47,340 )     -       (47,340 )
Reclassifcation of derivative liability to additional paid-in capital     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Recognition of beneficial conversion features related to convertible debt instruments     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Stock based compensation related to employee stock options     -       -       -       -       -       -       -       -       -       167,397       -       -       167,397       -       167,397  
Acquisition of equity interests in subsidiaries     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
                                                                                                                         
Balance, June 30, 2019     5,000,000     $ 500       500,000     $ 50       349,500     $ 35       27,839,340     $ 2,784     $ -     $ 24,576,289     $ (26,858,124 )   $ (296,936 )   $ (2,575,402 )   $ 1,723,994     $ (851,408 )

 

The accompanying notes are an integral part of the consolidated financial statements.

 

7
 

 

EVIO, INC.

Consolidated Statements of Changes in Stockholders' Equity (Unaudited)

For the Nine Months Ended June 30, 2018

  

    Series B Preferred Stock     Series C Preferred Stock     Series D Preferred Stock     Common Stock    

Stock

Subscriptions

   

AdditionaL

Paid-in

    Retained    

Accumulated

Other

Comprehensive

   

Total

Stockholders'

    Noncontrolling     Total  
    Shares     Value     Shares     Value     Shares     Value     Shares     Value     Receivable     Capital     Earnings     Income     Equity     Interest     Equity  
                                                                                           
Balance, September 30, 2017     5,000,000     $ 500       500,000     $ 50       832,500     $ 83       10,732,922     $ 1,073     $ - #   $ 7,657,982     $ (7,592,371 )   $ -     $ 67,317     $ 158,124     $ 225,441  
                                                                                                                         
Net income (loss)     -       -       -       -       -       -       -       -       -       -       (5,866,383 )     -       (5,866,383 )     (269,897 )     (6,136,280 )
Change in foreign currency translation     -       -       -       -       -       -       -       -       -       -       -       (317,132 )     (317,132 )     -       (317,132 )
Issuance of common stock in connection with the conversion of  Series D preferred stock     -       -       -       -       (280,000 )     (28 )     700,000       70       -       (42 )     -       -       -       -       -  
Issuance of common stock in connection with sales made under private offerings     -       -       -       -       -       -       2,561,392       257       -       2,041,115       -       -       2,041,372       -       2,041,372  
Issuance of common stock in connection with the exercise of common stock purchase warrants     -       -       -       -       -       -       13,333       1       -       7,998       -       -       7,999       -       7,999  
Issuance of common stock as compensation to employees, officers and/or directors     -       -       -       -       -       -       200,000       20       -       439,987       -       -       440,007       -       440,007  
Issuance of common stock in exchange for consulting, professional and other services provided     -       -       -       -       -       -       269,750       27       -       290,187       -       -       290,214       -       290,214  
Issuance of common stock in satisfaction of debt issuances costs     -       -       -       -       -       -       620,271       62       -       1,389,345       -       -       1,389,407       -       1,389,407  
Issuance of common stock in connection with the settlement of accounts payable     -       -       -       -       -       -       37,500       4       -       18,746       -       -       18,750       -       18,750  
Issuance of common stock in connection with the settlement of notes payable     -       -       -       -       -       -       324,000       32       -       161,968       -       -       162,000       -       162,000  
Issuance of common stock in connection with the conversion of loans payable     -       -       -       -       -       -       3,990,883       399       -       2,196,389       -       -       2,196,788       -       2,196,788  
Issuance of common stock in connection with the conversion of debentures     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock in connection with the conversion of related party notes payable     -       -       -       -       -       -       125,000       13       -       62,487       -       -       62,500       -       62,500  
Issuance of common stock in connection with the conversion of interest payable     -       -       -       -       -       -       144,852       14       -       75,352       -       -       75,366       -       75,366  
Common stock options issued under employee equity incentive plan     -       -       -       -       -       -       -       -       -       1,390,031       -       -       1,390,031       -       1,390,031  
Reclassifcation of derivative liability to additional paid-in capital     -       -       -       -       -       -       -       -       -       2,342,112       -       -       2,342,112       -       2,342,112  
Recognition of beneficial conversion features related to convertible debt instruments     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Acquisition of equity interests in subsidiaries     -       -       -       -       -       -       -       -       -       -       -       -       -       2,362,095       2,362,095  
                                                                                                                         
Balance, June 30, 2018     5,000,000     $ 500       500,000     $ 50       552,500     $ 55       19,719,903     $ 1,972     $ -     $ 18,073,657     $ (13,458,754 )   $ (317,132 )   $ 4,300,348     $ 2,250,322     $ 6,550,670  

 

The accompanying notes are an integral part of the consolidated financial statements.

 

8
 

 

EVIO, INC.

Consolidated Statements of Changes in Stockholders' Equity (Unaudited)

For the Nine Months Ended June 30, 2019

  

    Series B Preferred Stock     Series C Preferred Stock     Series D Preferred Stock     Common Stock    

Stock

Subscriptions

   

AdditionaL

Paid-in

    Retained    

Accumulated

Other

Comprehensive

   

Total

Stockholders'

    Noncontrolling     Total  
    Shares     Value     Shares     Value     Shares     Value     Shares     Value     Receivable     Capital     Earnings     Income     Equity     Interest     Equity  
                                                                                                                         
Balance, September 30, 2018     5,000,000     $ 500       500,000     $ 50       552,500     $ 55       23,255,411     $ 2,326     $ -     $ 21,495,621     $ (19,226,462 )   $ (263,985 )   $ 2,008,105     $ 1,934,634     $ 3,942,739  
                                                                                                                         
Net income (loss)     -       -       -       -       -       -       -       -       -       -       (7,631,662 )     -       (7,631,662 )     (210,640 )     (7,842,302 )
Change in foreign currency translation     -       -       -       -       -       -       -       -       -       -       -       (32,951 )     (32,951 )     -       (32,951 )
Issuance of common stock in connection with the conversion of Series D preferred stock     -       -       -       -       (203,000 )     (20 )     507,500       50       -       (30 )     -       -       -       -       -  
Issuance of common stock in connection with sales made under private offerings     -       -       -       -       -       -       1,415,000       142       -       591,858       -       -       592,000       -       592,000  
Issuance of common stock in connection with stock subscriptions received under private offerings     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock in connection with the exercise of  common stock purchase warrants     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock as compensation to employees, officers  and/or directors     -       -       -       -       -       -       112,500       11       -       68,239       -       -       68,250       -       68,250  
Issuance of common stock in exchange for consulting, professional  and other services provided     -       -       -       -       -       -       1,038,017       104       -       331,047       -       -       331,151       -       331,151  
Issuance of common stock in satisfaction of debt issuances costs     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock in connection with the settlement of accounts payable     -       -       -       -       -       -       31,579       3       -       14,997       -       -       15,000       -       15,000  
Issuance of common stock in connection with the settlement of notes payable     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Issuance of common stock in connection with the conversion of loans payable     -       -       -       -       -       -       779,808       78       -       317,022       -       -       317,100       -       317,100  
Issuance of common stock in connection with the conversion of debentures     -       -       -       -       -       -       669,362       67       -       387,933       -       -       388,000       -       388,000  
Issuance of common stock in connection with the conversion of related party notes payable     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
                                                                                                                         
Issuance of common stock in connection with the conversion of interest payable     -       -       -       -       -       -       10,163       1       -       2,987       -       -       2,988       -       2,988  
Issuance of common stock purchase warrants in satisfaction of debt issuances costs     -       -       -       -       -       -