HICKSVILLE, N.Y. --
August 20, 2019 -- InvestorsHub -- Canbiola, Inc.
(OTCQB: CANB) (“Canbiola”
or the “Company”), a developer, manufacturer and seller of a
variety of hemp-derived THC-Free Cannabidiol (CBD) Isolate products
such as oils, drops/tinctures, creams, moisturizers, chews, and
capsules, announced today the company's financial results for the
second quarter ended June 30, 2019.
Key Financial
Highlights for Q2 2019:
- Revenues increased by 311%
to $633,579
- Gross margin of
52.8%
- Operating loss of
$1,435,289, included $959,948 in non-cash stock-based
compensation
- Closed $3,936,700 cash
raised subsequent to the end of the quarter
Key Business
Highlights for Q2 2019:
- Appointed David Woycik, Jr.
to Corporate Advisory Board
- Completed a 300% increased
investment in its Duramed division to combat the opioid
crisis
- Conducted its Annual
Shareholder Meeting on June 14
- Created a joint venture
with NY SHI and Shi Farms to become vertically
integrated
Management
Commentary
“Our second-quarter results
reflect the continued business traction and growth we are achieving
from the wide variety of our CBD products. Our focus on the medical
community has been key in driving our growth, as our products are
now in over 300 medical offices and health professionals,”
commented, Canbiola Chief Executive
Officer Marco Alfonsi. “During the second quarter and with the
subsequent closing in July, we have become vertically integrated
with our joint venture with NY SHI and Shi Farms. This is a major
inflection point for our Company as we seek to become a major
player in the New York hemp market. This joint venture enables us
to partner with local farmers to assist them in growing their
business and providing us with access and rights to acquire certain
isolate which will be beneficial in costs and differentiate our
value.”
Recently Announced
Joint Venture:
NY SHI and Shi
Farms – June 12 (Letter of Intent) and July 22
(Closing)
Canbiola and its
wholly-owned subsidiary, NY Hemp Depot LLC, has officially formed a
joint venture with NY – SHI, LLC (“NY – SHI”) and EWSD I LLC dba
Shi Farms (“Shi Farms”), a vertically-integrated high - CBD hemp
cultivation company, to aggregate and purchase fully-grown,
harvested industrial hemp from third-party farmers in the State of
New York.
The joint venture will
operate the NY Hemp Depot Facility for hemp processing in the State
of New York. Additionally, it may also sell feminized seeds,
clones, and additional materials required to grow industrial hemp
and maximize CBD potency. NY – SHI’s cultivating license will be
amended to add the NY Hemp Depot Facility. The NY Hemp Depot
Facility will empower and enable local farmers, both indoor and
outdoor, with technologies, products, and services to help them
grow their businesses and revenues. The joint venture plans to
aggregate and purchase fully-grown, harvested industrial hemp from
farmers in New York, who are growing such industrial hemp on their
own properties and, in the future, to solicit farmers to grow
industrial hemp on behalf of the joint venture under NY – SHI’s
cultivating license.
NY Hemp Depot LLC, a
wholly-owned subsidiary of Canbiola, has full and complete
discretion to manage and control the joint venture. NY Hemp Depot
LLC is providing a building for the operation of the NY Hemp Depot
Facility, location services, management, and day-to-day operations,
and services for the recruitment of farmers.
Shi Farms, which is a dba
for EWSD I, LLC, is a licensed Hemp Cultivation Operation under the
Colorado Department of Agriculture, operating a 300-acre farm and
40,000 square feet of research greenhouses. NY – SHI is providing
to the joint venture technical expertise regarding the growth and
cultivation of industrial hemp, growing technology and expertise,
use of its cultivating license that will be amended to add the NY
Hemp Depot Facility, and services for the recruitment of farmers.
NY – SHI agreed to sell certain products to the joint venture,
including feminized hemp seeds and/or clone plants, at the
prevailing market price for such products at the time of the sale,
for the joint venture to sell to farmers.
Canbiola also has the right to acquire
certain isolate from Shi Farms at the cost of processing the
isolate from biomass. The biomass would be aggregated and then
shipped to Shi Farms’ facility in Pueblo, Colorado, where it would
be processed by Shi Farms’ other joint-venture partner, Mile High
Labs, Inc. The amalgamation and processing will be done by Mile
High Labs’ The Monster (https://www.milehighlabs.com). Shi Farms
granted Canbiola’s wholly-owned subsidiary, NY Hemp Depot, LLC, a
minority interest in the one and one-half percent payments due to
Shi Farms in connection with its agreements with Mile High Labs,
Inc.
Financial Results
for the Three Months Ended June 30,
2019:
Revenue for the three
months ended June 30, 2019, was $633,579, an increase of $479,388
or 311%, compared to $154,191 for the three months ended June 30,
2018.
Gross profit for the three
months ended June 30, 2019, was $334,375, an increase of $227,036
or 212%, compared to $107,339 for the three months ended June 30,
2018. The resulting gross margin was 52.8% for the three months
ended June 30, 2019, compared to 69.6% for the three months ended
June 30, 2018.
Operating expenses for the
three months ended June 30, 2019, were $1,769,664, an increase of
$1,193,890 or 207%, compared to $575,774 for the three months
ended June 30, 2018. For the three months ended June 30, 2019,
operating expenses included non-cash stock-based compensation of
$959,948 paid to officers, employees, and service of consultants,
compared to $344,869 for the three months ended June 30,
2018.
Operating loss for the
three months ended June 30, 2019, was $1,435,289, an increase of
$966,854, or 206%, compared to $468,435 for the three months ended
June 30, 2018.
Adjusted operating loss for
the three months ended June 30, 2019, was $475,341, an increase of
$351,775, or 285%, compared to $123,566 for the three months ended
June 30, 2018. Adjusted operating loss does not include non-cash
stock-based compensation.
Net loss for the three
months ended June 30, 2019, was $1,437,491, an increase of
$462,615, or 47%, compared to $974,876 for the three months ended
June 30, 2018. The resulting EPS loss for the three months ended
June 30, 2019, was ($0.00) per diluted share, compared to ($0.00)
per diluted share for the three months ended June 30,
2018.
Financial Results
for the Six Months Ended June 30, 2019:
Revenue for the six months
ended June 30, 2019 was $1,150,739, an increase of $926,779 or
414%, compared to $223,960 for the six months ended June 30,
2018.
Gross profit for the six
months ended June 30, 2019, was $588,982, an increase of $456,461
or 344%, compared to $132,521 for the six months ended June 30,
2018. The resulting gross margin was 51.2% for the six months ended
June 30, 2019, compared to 59.2% for the six months ended June 30,
2018.
Operating expenses for the
six months ended June 30, 2019, were $3,196,339, an increase of
$1,960,692 or 159%, compared to $1,235,647 for the six months ended
June 30, 2018. For the six months ended June 30, 2019, operating
expenses included non-cash stock-based compensation of $1,788,144
paid to officers, employees, and service of consultants, compared
to $758,177 for the six months ended June 30,
2018.
Operating loss for the six
months ended June 30, 2019 was $2,607,357, an increase of
$1,504,231, or 136%, compared to $1,103,126 for the six months
ended June 30, 2018.
Adjusted operating loss for
the six months ended June 30, 2019, was $819,203, an increase of
$474,254, or 137%, compared to $344,949 for the six months ended
June 30, 2018. Adjusted operating loss does not include non-cash
stock-based compensation.
Net loss for the six months
ended June 30, 2019 was $2,610,005, an increase of $2,042,687, or
360%, compared to $567,318 for the six months ended June 30, 2018.
The resulting EPS loss for the six months ended June 30, 2019, was
($0.00) per diluted share, compared to ($0.00) per diluted share
for the six months ended June 30, 2018.
About Canbiola,
Inc.
Canbiola, Inc.
(OTCQB: CANB) is a
vertically integrated conglomerate specializing in the
manufacturing, formulation, and sale of THC-Free Cannabidiol
(CBD) Isolate products such as oils, drops/tinctures, gels, creams,
moisturizers, chews, and capsules. All Canbiola products are
organic and Non-GMO, free of impurities and contaminants, and
formulated with the finest ingredients to the highest manufacturing
standards. All products are certified for purity and accuracy by
third-party laboratory verification.
Canbiola pursues an
aggressive growth strategy through the continual development of
proprietary products and the expansion of its offerings via
strategic acquisitions in the healthcare and CBD
industries.
Canbiola has created
several innovative CBD product lines, marketed through targeted
channels including:
The Canbiola clinical line,
which is marketed and promoted through healthcare practitioners in
the medical setting.
The Pure Leaf Oil (consumer
brand) and Seven Chakras (spa brand) lines are sold through both
online and brick & mortar retail outlets.
Canbiola’s state-of-the-art
manufacturing facility in Lacey, WA is operated by Pure Health
Products LLC (PHP), a wholly-owned subsidiary that produces all of
the Company’s CBD Isolate products, in addition to providing
private label and white label solutions for companies looking to
add high-quality CBD items to their offerings. Canbiola is
passionate about improving people’s lives and we take pride in
providing pure CBD products infused with organic and natural
ingredients. We want customers to know that they are buying
lab-tested, high-quality natural products at a great
price.
Canbiola’s Radical Tactical
LLC subsidiary produces CBD products in other forms including vapes
and gums.
Duramed Inc. and DuramedNJ
LLC, wholly-owned subsidiaries of Canbiola, further the mission of
providing innovative products designed to improve people’s lives,
aiming to reduce their use of opioid substances through the
utilization of durable medical devices. This product line includes
an FDA-approved wearable low-intensity ultrasound SAM (Sustained
Acoustic Medicine) device delivering multi-hour treatment intended
to accelerate healing, improve function for musculoskeletal
injuries (muscle, tendon, ligament) and reduce chronic pain
(without opioid pain medication).
With the creation of its
newest wholly-owned subsidiary, NY Hemp Depot LLC, Canbiola has
attained complete vertical integration, allowing it to fully
control the supply chain from seed to sale, develop customized
products and maximize profit margins. Through the utilization of
its newly acquired NY State Hemp Cultivation License, the Company
contracts with farmers throughout the state of NY to cultivate
specific strains of hemp, which is then processed into CBD Isolate
products to Canbiola’s exacting manufacturing standards and
specifications at the Company’s laboratory and production
facility.
For more information about
Canbiola, Inc., please visit: Canbiola.com
Use of Non-GAAP
Financial Measures
To supplement Canbiola’s
financial statements presented on a GAAP
basis, Canbiola provides Adjusted Operating/EBITDA as
supplemental measures of its performance.
To provide investors with
additional insight and allow for a more comprehensive understanding
of the information used by management in its financial and
decision-making surrounding pro forma operations, we supplement our
consolidated financial statements presented on a basis consistent
with U.S. generally accepted accounting principles, or GAAP, with
EBITDA, Adjusted EBITDA and Adjusted EPS as non-GAAP financial
measures of earnings. EBITDA represents net income before income
tax expense (benefit), interest expense, depreciation, and
amortization. Adjusted EBITDA represents EBITDA plus stock-based
compensation and change in fair value of derivative liabilities.
Adjusted EPS represents Adjusted EBITDA divided by the number of
fully diluted shares outstanding. Our management uses EBITDA,
Adjusted EBITDA, and Adjusted EPS as financial measures to evaluate
the profitability and efficiency of our business model. We use
these non-GAAP financial measures to access the strength of the
underlying operations of our business. These adjustments and the
non-GAAP financial measures that are derived from them provide
supplemental information to analyze our operations between periods
and overtime. We find this especially useful when reviewing pro
forma results of operations, which include large non-cash
amortizations of intangible assets from acquisitions and
stock-based compensation. Investors should consider our non-GAAP
financial measures in addition to, and not as a substitute for,
financial measures prepared in accordance with
GAAP.
Forward-Looking
Statements
Forward-looking statements
and risks and uncertainties discussed in this letter contain
forward-looking statements. The words "anticipate," "believe,"
"estimate," "may," "intend," "expect," and similar expressions
identify such forward-looking statements. Expected, actual results,
performance, or achievements could differ materially from those
contemplated, expressed, or implied by the forward-looking
statements contained herein. Forward-looking statements are subject
to a number of risks and uncertainties, including but not limited
to, risks and uncertainties associated with, among other things,
the impact of economic, competitive, and other factors affecting
our operations, markets, products, and performance. The matters
discussed herein should not be construed in any way, shape or
manner of our future financial condition or stock
price.
Follow Canbiola
on:
Twitter
@CanbiolaHealth
Instagram @canbiola.inc or
@canbiola_cbd or @canbiola_medical_cbd
Follow us
on Twitter and Facebook
Investors and
Media:
IR@canbiola.com
(516)
595-9544
Canbiola, Inc., and
Subsidiary
Consolidated Balance Sheets
|
|
June 30, 2019 |
|
|
December 31, 2018 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
413,098 |
|
|
$ |
807,747 |
|
Accounts receivable, less allowance for doubtful accounts of $0
and $0, respectively |
|
|
588,560 |
|
|
|
39,172 |
|
Inventory |
|
|
87,854 |
|
|
|
87,104 |
|
Prepaid expenses – current |
|
|
310,747 |
|
|
|
210,351 |
|
Other receivable – current |
|
|
5,000 |
|
|
|
- |
|
Total current assets |
|
|
1,405,259 |
|
|
|
1,144,374 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, at cost less accumulated depreciation
of $48,512 and $20,248, respectively |
|
|
991,811 |
|
|
|
59,619 |
|
|
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
Deposit – noncurrent |
|
|
19,786 |
|
|
|
48,726 |
|
Prepaid expenses – noncurrent |
|
|
2,688,565 |
|
|
|
2,365,719 |
|
Note receivable – noncurrent |
|
|
19,390 |
|
|
|
19,389 |
|
Other receivable – noncurrent |
|
|
15,225 |
|
|
|
- |
|
Intangible assets, net of accumulated amortization of $7,160
and $0, respectively |
|
|
191,495 |
|
|
|
- |
|
Goodwill |
|
|
55,849 |
|
|
|
55,849 |
|
Right-of-Use Asset, net of accumulated depreciation of $8,767
and $0, respectively |
|
|
81,824 |
|
|
|
- |
|
Total other assets |
|
|
3,072,134 |
|
|
|
2,489,683 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,469,204 |
|
|
$ |
3,693,675 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’
Deficiency |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Notes and loans payable |
|
$ |
15,841 |
|
|
$ |
19,205 |
|
Accounts payable |
|
|
91,135 |
|
|
|
73,059 |
|
Accrued officers’ compensation |
|
|
68,750 |
|
|
|
68,750 |
|
Other accrued expenses payable |
|
|
33,177 |
|
|
|
43,778 |
|
Current portion of lease liability |
|
|
32,552 |
|
|
|
- |
|
Total current liabilities |
|
|
241,455 |
|
|
|
204,792 |
|
|
|
|
|
|
|
|
|
|
Non-current portion of lease liability |
|
|
50,582 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
292,037 |
|
|
|
204,792 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (Notes 14) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, authorized 5,000,000 shares: |
|
|
|
|
|
|
|
|
Series A Preferred stock, no par value: authorized 20 shares,
issued and outstanding 20 and 18 shares, respectively |
|
|
5,539,174 |
|
|
|
4,557,424 |
|
Series B Preferred stock, $0.001 par value: authorized 500,000
shares, issued and outstanding 342,853 and 499,958 shares,
respectively |
|
|
322 |
|
|
|
479 |
|
Common stock, no par value; authorized 1,500,000,000 shares,
issued and outstanding 595,171,059 and 440,566,325 shares,
respectively |
|
|
19,941,253 |
|
|
|
16,624,557 |
|
Additional Paid-in capital |
|
|
872,976 |
|
|
|
872,976 |
|
Additional Paid-in capital – Stock Options (Note 11) |
|
|
202,200 |
|
|
|
202,200 |
|
Accumulated deficit |
|
|
(21,378,758 |
) |
|
|
(18,768,753 |
) |
Total stockholders’ equity |
|
|
5,177,167 |
|
|
|
3,488,883 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
5,469,204 |
|
|
$ |
3,693,675 |
Canbiola, Inc. and
Subsidiary
Consolidated Statements of Operations and Comprehensive
Loss
(Unaudited)
|
|
Six Months Ended June 30, |
|
|
Three Months Ended June 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Sales |
|
$ |
1,147,139 |
|
|
$ |
211,203 |
|
|
$ |
631,779 |
|
|
$ |
148,234 |
|
Service Revenue |
|
|
3,600 |
|
|
|
12,757 |
|
|
|
1,800 |
|
|
|
5,957 |
|
Total Revenues |
|
|
1,150,739 |
|
|
|
223,960 |
|
|
|
633,579 |
|
|
|
154,191 |
|
Cost of product sales |
|
|
561,757 |
|
|
|
91,439 |
|
|
|
299,204 |
|
|
|
46,852 |
|
Gross Profit |
|
|
588,982 |
|
|
|
132,521 |
|
|
|
334,375 |
|
|
|
107,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Officers and director’s compensation (including stock- based
compensation of $834,230, $185,400, $336,882, and $0,
respectively) |
|
|
1,274,688 |
|
|
|
321,650 |
|
|
|
829,138 |
|
|
|
58,850 |
|
Consulting fees (including stock-based compensation of
$953,914, $572,777, $388,138 and $344,869 respectively) |
|
|
1,091,086 |
|
|
|
643,676 |
|
|
|
427,335 |
|
|
|
367,769 |
|
Advertising expense |
|
|
153,762 |
|
|
|
37,008 |
|
|
|
127,374 |
|
|
|
14,675 |
|
Hosting expense |
|
|
7,917 |
|
|
|
7,478 |
|
|
|
7,467 |
|
|
|
3,810 |
|
Rent expense |
|
|
12,344 |
|
|
|
33,065 |
|
|
|
484 |
|
|
|
16,800 |
|
Professional fees |
|
|
112,016 |
|
|
|
70,339 |
|
|
|
74,180 |
|
|
|
56,956 |
|
Depreciation of property and equipment |
|
|
14,297 |
|
|
|
1,604 |
|
|
|
11,532 |
|
|
|
801 |
|
Amortization of intangible assets |
|
|
7,160 |
|
|
|
- |
|
|
|
4,966 |
|
|
|
- |
|
Other |
|
|
523,069 |
|
|
|
120,827 |
|
|
|
287,188 |
|
|
|
56,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
3,196,339 |
|
|
|
1,235,647 |
|
|
|
1,769,664 |
|
|
|
575,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(2,607,357 |
) |
|
|
(1,103,126 |
) |
|
|
(1,435,289 |
) |
|
|
(468,435 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
317 |
|
|
|
5,024 |
|
|
|
317 |
|
|
|
2,512 |
|
Income from derivative liability |
|
|
- |
|
|
|
844,051 |
|
|
|
- |
|
|
|
(231,655 |
) |
Loss on stock issuance |
|
|
|
|
|
|
(185,104 |
) |
|
|
|
|
|
|
(185,104 |
) |
Loss on debt conversion |
|
|
|
|
|
|
(57,738 |
) |
|
|
|
|
|
|
(57,738 |
) |
Interest expense (including amortization of debt discounts of
$0 and $54,165, respectively) |
|
|
(2,965 |
) |
|
|
(70,425 |
) |
|
|
(2,519 |
) |
|
|
(34,456 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) - net |
|
|
(2,648 |
) |
|
|
535,808 |
|
|
|
(2,202 |
) |
|
|
(506,441 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision for income taxes |
|
|
(2,610,005 |
) |
|
|
(567,318 |
) |
|
|
(1,437,491 |
) |
|
|
(974,876 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and comprehensive loss |
|
$ |
(2,610,005 |
) |
|
$ |
(567,318 |
) |
|
|
(1,437,491 |
) |
|
|
(974,876 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share - basic and diluted |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding – |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
532,985,996 |
|
|
|
232,957,482 |
|
|
|
564,041,249 |
|
|
|
236,270,276 |
|
Diluted |
|
|
781,082,928 |
|
|
|
371,751,524 |
|
|
|
715,286,813 |
|
|
|
377,833,277 |
|
Canbiola, Inc. and
Subsidiary
Consolidated Statements of Cash Flows
(Unaudited)
|
|
Six Months Ended June 30, |
|
|
|
2019 |
|
|
2018 |
|
Operating Activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,610,005 |
) |
|
$ |
(567,318 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Stock based compensation, net of prepaid stock-
based consulting fees |
|
|
1,553,216 |
|
|
|
758,177 |
|
Loss on stock issuance |
|
|
- |
|
|
|
185,104 |
|
Loss on debt conversion |
|
|
- |
|
|
|
57,738 |
|
Debt issuance expense |
|
|
- |
|
|
|
14,000 |
|
Expense from derivative liability |
|
|
- |
|
|
|
(844,051 |
) |
Depreciation of property and equipment - General |
|
|
14,296 |
|
|
|
1,604 |
|
Depreciation of property and equipment - COGS |
|
|
24,973 |
|
|
|
- |
|
Amortization of intangible assets |
|
|
7,160 |
|
|
|
- |
|
Amortization of debt discounts |
|
|
- |
|
|
|
54,165 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(549,388 |
) |
|
|
(8,057 |
) |
Inventory |
|
|
(750 |
) |
|
|
2,712 |
|
Prepaid expenses |
|
|
(7,850 |
) |
|
|
- |
|
Other receivable |
|
|
(20,225 |
) |
|
|
- |
|
Security deposit |
|
|
28,940 |
|
|
|
- |
|
Accounts payable |
|
|
18,076 |
|
|
|
(10,906 |
) |
Accrued officers’ compensation |
|
|
- |
|
|
|
72,500 |
|
Other accrued expenses payable |
|
|
(10,601 |
) |
|
|
10,607 |
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
|
(1,317,230 |
) |
|
|
(273,725 |
) |
|
|
|
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
|
|
|
|
Intangible assets additions |
|
|
(50,000 |
) |
|
|
- |
|
Fixed assets additions |
|
|
(962,698 |
) |
|
|
(38,355 |
) |
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(1,012,698 |
) |
|
|
(38,355 |
) |
|
|
|
|
|
|
|
|
|
Financing Activities: |
|
|
|
|
|
|
|
|
Repayments of notes and loans payable |
|
|
(3,364 |
) |
|
|
- |
|
Repayments of lease liability |
|
|
(7,457 |
) |
|
|
- |
|
Proceeds received from notes and loans payable |
|
|
- |
|
|
|
135,000 |
|
Proceeds from sale of common stock |
|
|
1,946,100 |
|
|
|
- |
|
Proceeds from sale of Series B preferred stock |
|
|
- |
|
|
|
249,000 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
1,935,279 |
|
|
|
384,000 |
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
|
|
(394,649 |
) |
|
|
71,920 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period |
|
|
807,747 |
|
|
|
1,652 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period |
|
$ |
413,098 |
|
|
$ |
73,572 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
Income taxes paid |
|
$ |
- |
|
|
$ |
- |
|
Interest paid |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock in acquisition of Intangible
assets |
|
$ |
148,655 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Issuance of common stock in satisfaction of Officers
compensation |
|
$ |
54,340 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Issuance of common stock in satisfaction of debt |
|
$ |
- |
|
|
$ |
15,000 |
|
|
|
|
|
|
|
|
|
|
Issuance of common stock in satisfaction of directors’
fees |
|
$ |
- |
|
|
$ |
202,800 |
|
|
|
|
|
|
|
|
|
|
Issuance of common stock in satisfaction of Accrued
interest |
|
$ |
- |
|
|
|
4,246 |
|
|
|
|
|
|
|
|
|
|
Issuance of common stock for services rendered |
|
$ |
497,220 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|